Walmart Reports Strong Quarterly Revenue as Slower U.S. Sales Growth Raises Consumer Spending Questions

The results made Walmart one of the day's most closely watched business stories and offered a useful snapshot of changing conditions in the retail sector.

The company reported total revenue of approximately $187.9 billion for the quarter, exceeding expectations and representing continued growth across its major business operations. Walmart also reported strong digital performance, with global e-commerce sales increasing 23% during the quarter. In the United States, e-commerce sales increased 24%, supported by continued demand for online ordering, delivery and other digital shopping services.

Despite the overall revenue growth, Walmart's U.S. comparable sales increased 2.6%, excluding fuel. That represented a significant slowdown from the previous quarter's 4.1% growth and came in below Wall Street expectations. The weaker comparable-sales figure became one of the central points of discussion surrounding the company's results.

Comparable sales are an important measure for retailers because they track sales at established stores and digital operations over a defined period. The figure helps investors and analysts evaluate whether a retailer is generating growth from existing operations rather than relying primarily on opening additional locations.

Walmart's results showed that consumers are continuing to spend, but the pace of spending is becoming more uneven. The company said it continued to gain market share across different income groups, indicating that its broad customer base remains an important advantage. At the same time, slower comparable sales growth suggests that the retail environment remains challenging for businesses trying to maintain strong momentum.

The company's e-commerce performance provided one of the clearest bright spots in the quarterly report. Walmart U.S. e-commerce increased 24%, while Sam's Club U.S. e-commerce rose 26%. The company also reported a 40% increase in store-fulfilled delivery during the quarter.

Digital sales have become an increasingly important component of Walmart's overall business model. The retailer has invested heavily in connecting its physical stores with online shopping, allowing stores to function not only as traditional retail locations but also as fulfillment centers for digital orders.

Walmart's international business also delivered solid growth. International net sales increased 7.9% on a constant-currency basis, according to the company's earnings report. E-commerce sales in the international division increased 19%, demonstrating that digital shopping remains an important source of growth beyond the United States.

Another area of strength was Walmart's advertising business. Global advertising revenue increased 38%, while Walmart Connect's U.S. advertising business grew 43% excluding VIZIO. Advertising has become an increasingly important source of revenue for large retailers as companies use their shopping platforms and customer data to connect brands with consumers.

The company also reported operating income growth, although part of the increase reflected a substantial benefit from tariff refunds. Walmart said adjusted operating income increased approximately 17% in constant currency, including a 750-basis-point net benefit from those refunds. Excluding that benefit, underlying operating income growth was at the upper end of the company's previously stated 7% to 10% guidance.

Walmart maintained an optimistic long-term view of its business and raised its sales and operating-income growth guidance for the fiscal year. The company expects fiscal 2027 net sales to grow between 4% and 5% and adjusted earnings per share to reach between $2.80 and $2.87.

However, investors reacted cautiously to the report. Walmart shares fell sharply during Thursday's trading session after the company released its results. The market reaction reflected concerns about the slower pace of comparable U.S. sales and the company's outlook for the remainder of the year.

The contrast between Walmart's strong headline revenue growth and slower comparable sales is significant for the broader retail industry. Walmart is one of the largest retailers in the United States, giving its results the potential to provide insight into shopping behavior across a wide range of households.

For consumers, the company's results also illustrate the continuing shift toward digital shopping and convenient delivery services. Walmart's strong online growth indicates that customers are increasingly combining traditional store visits with digital ordering and fulfillment options.

For the retail industry, the key takeaway is that growth remains possible even as shoppers become more selective. Businesses with large physical networks, strong digital platforms and multiple revenue sources may be better positioned to adapt to changes in consumer behavior.

Walmart's second-quarter results therefore present a mixed but informative picture of the U.S. retail economy: overall sales remain strong, digital commerce continues to expand rapidly, and the company's international and advertising businesses are providing additional sources of growth. At the same time, the slowdown in U.S. comparable sales suggests that maintaining that momentum may become more difficult in the quarters ahead.

For investors, retailers and consumers alike, Walmart's performance provides an important business indicator heading into the second half of 2026.