Walmart Inc. · Q2 FY2027

The quarter in short

Revenue $187.94B, up 5.9% year over year and 5.7% on the quarter. Adjusted EPS $0.81, up 19.1% year over year and 22.7% on the quarter. GAAP EPS $0.80. Free cash flow $7.47B, up 14.4% year over year. Adjusted EPS beat consensus by 9%. Rule of 40 score +10.

What we learned

1. A one-cent wedge took two twelve-cent items to produce. The release states it plainly: adjusted EPS "excludes the impact, net of tax, from a net loss of $0.12 on equity and other investments, and net benefit of $0.11 from a certain tax matter." The gap was not small because t…
2. The tariff refunds the guidance excluded arrived, and they are in the gross margin . Walmart's 21 May guide explicitly assumed no IEEPA refund impact — our preview flagged that as the line to watch.
3. The raise was real, on every line. Full-year adjusted EPS goes from $2.75–2.85 to $2.80–2.87 , net sales from +3.5–4.5% to +4.0–5.0% constant currency, adjusted operating income from +6.0–8.0% to +7.0–8.5% .
4. The earnings beat is an order of magnitude larger than the revenue beat. Adjusted EPS beat by 9.5% ; revenue beat by 0.7% . A company growing revenue 5.9% does not produce a 9.5% earnings beat from operations in one quarter, and the release tells you where the difference sits.
5. The high-margin attach businesses are growing six times the company. Global advertising +38% , membership fee revenue +17% , eCommerce +23% , against total revenue of +5.9%. That mix shift, not the tariff line, is what makes a 96bps gross margin gain repeatable.

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