Walmart (WMT) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue grew 4.8% to $169.3 billion, with strong sales across U.S. and international segments, especially in eCommerce, grocery, and health and wellness.

• Operating income rose 8.5% to $7.9 billion, with margin expansion from higher-margin businesses and disciplined expense management.

• Adjusted operating income increased 7.2%, and adjusted EPS was $0.67, up 9.8% year-over-year, excluding $0.11 net losses on equity and other investments.

• Global eCommerce sales grew 21%, with U.S. eCommerce up 22% and strong contributions from store-fulfilled pickup, delivery, and marketplace.

• Bob Moritz, retired chair of PwC, appointed to the Board of Directors.

Financial highlights

• Net sales reached $167.8 billion, up 4.7% year-over-year; total revenues were $169.3 billion, up 4.8%.

• Gross profit margin increased 43 basis points to 24.4%, led by improvements in U.S. and International segments.

• Operating income was $7.9 billion, up 8.5%; adjusted operating income up 7.2%.

• Free cash flow for the six months was $5.9 billion, down $3.1 billion year-over-year due to higher capital expenditures and lower operating cash flow.

• Share repurchases totaled $2.1 billion in the first six months; $14.5 billion remains authorized.

Outlook and guidance

• FY25 guidance: net sales growth of 3.75% to 4.75%, adjusted operating income growth of 6.5% to 8.0%, and adjusted EPS of $2.35 to $2.43.

• Q3 guidance: net sales growth of 3.25% to 4.25%, operating income growth of 3.0% to 4.5%, and adjusted EPS of $0.51 to $0.52.

• Guidance reflects strong first half but remains cautious due to economic and geopolitical uncertainties.