BENTONVILLE, ARK. — Walmart continues to benefit as consumers across income levels, including affluent customers, are seeking value when shopping in stores or online, President and Chief Executive Officer Doug McMillon said in reporting fiscal 2025 second-quarter results.

Adjusted earnings per share topped prior-year EPS and the high end of Wall Street’s projection, though reported net income took a hit from investment losses. Overall revenue climbed 5% in constant currency, with sales up in all three operating units: Walmart US, Sam’s Club and Walmart International. The performance led the world’s largest retailer to raise its full-year guidance.

“We had another good quarter, with strong sales growth and even stronger profit growth, exceeding our expectations,” McMillon told analysts in an Aug. 15 conference call. “The strength we saw for the quarter was broad-based. Our business outside the US continues to lift the total company in terms of sales and profit growth.”

Walmart gained market share during the second quarter, including in the discretionary category of general merchandise, and transaction counts and unit volume rose across markets, McMillon said.

“In the US, for both Walmart and Sam’s Club, comp sales (comparable sales) were fairly consistent throughout the quarter,” he said. “Food continues to be strong, and it’s encouraging to see improvements in general merchandise. Our US health and wellness business in Walmart and Sam’s Club, primarily due to sales of GLP-1 drugs, is contributing to our strong comp sales.

“So far, we aren’t experiencing a weaker consumer overall. Around the world, our customers and members continue to want four things: They want value, they want a broad assortment of items and services, they want a convenient and enjoyable experience buying them, and they want to do business with a company they trust. These four things are constant, but the way we provide them is changing — and changing fast. The results we're delivering are due to real progress across these dimensions.”

Consolidated net income for the quarter ended July 31 totaled $4.5 billion, equal to 56¢ per share on the common stock, down from $7.89 billion, or 97¢ per share, a year earlier. The fiscal 2025 quarter’s results reflect a pretax 14¢-per-share loss from equity and other investments and compared with a 48¢-per-share pretax investment gain in the prior-year period, Walmart said. On an adjusted basis, second-quarter 2025 diluted net EPS was 67¢, up from 61¢ a year ago. That surpassed analysts’ top-end forecast of 66¢.

“As it relates to value, we’re lowering prices,” McMillon said. “For the quarter, both Walmart US and Sam’s Club US were slightly deflationary overall. Walmart US food prices were slightly inflated as we exited Q2, but down 30 basis points versus Q1. In Walmart US, we have more than 7,200 (price) Rollbacks across categories. Customers from all income levels are looking for value, and we have it.”

At the top line, Walmart’s second-quarter revenue rose 4.8% to $169.34 billion from $161.63 billion a year ago, with the increase at 5% in constant currency. Operating income was up 8.5% to $7.94 billion and grew 8.8% in constant currency.

Net sales at the core Walmart US business unit grew 4.1% year over year to $115.35 billion. Comparable sales excluding fuel were up 4.2%, less than the 6.1% gain a year ago. Customer transactions grew 3.6%, up from a year-ago increase of 2.9%, while the 0.6% uptick in average ticket size came in below last year’s increase of 3.4%. Walmart said e-commerce contributed 300 basis points to US comp sales, up from 230 basis points a year earlier. US operating profit advanced 7.8% to $6.59 billion.

“In Walmart US, comp sales growth of 4.2% was driven primarily by strong traffic and unit growth across both stores and digital channels,” said John David Rainey, chief financial officer for Walmart. “Customers continue to be discerning and choiceful, looking for value to maximize their budgets while leaning into seasonal celebrations. The pace of sales was largely consistent by month during the quarter. Across categories, we’re providing low prices and winning customer consideration, including in general merchandise, with Walmart US comp sales growth in hardlines, home and fashion.

“We’re also seeing higher engagement across income cohorts, with upper-income households continuing to account for the majority of gains, even while we grow sales and share among middle- and lower-income households. We’re seeing private brand penetration continue to increase, and we’re highly encouraged by customer uptake of our new food brand, bettergoods.”

Sales at Sam’s Club rose 4.7% to $22.85 billion, while comparable sales excluding fuel were up 5.2% in the quarter, compared with a 5.5% increase a year earlier. The warehouse club chain saw transactions jump 6.1% versus a 2.9% gain a year ago. The average ticket decreased 0.8% after a 2.5% uptick in the prior-year period. E-commerce contributed 230 basis points to comp sales growth, up from 150 basis points a year earlier. Operating profit grew 11.5% to $581 million.

Walmart International net sales were up 7.1% to $29.57 billion, with growth at 8.3% in constant currency. Operating income climbed 14.3% to $1.36 billion and was up 15.7% in constant currency.

Overall, Walmart’s e-commerce sales grew 21%, with gains of 22% for Walmart US, 22% for Sam’s Club and 18% for Walmart International.

“Sometimes, it’s most convenient or enjoyable to visit one of our stores or Sam’s Clubs,” McMillon said in discussing Walmart US’ performance. “Sometimes it’s more convenient to pick up an order. And sometimes, it’s more convenient to get it delivered. Our store and club businesses are growing. Pickup is growing faster than our in-store or club sales, and delivery is growing even faster than pickup.”

Walmart posted fiscal 2025 first-half consolidated net earnings of $9.61 billion, equal to $1.19 per share, up slightly from $9.56 billion, or $1.18 per share, in the fiscal 2024 first half. Adjusted EPS (diluted) was $1.27 for the 2025 half versus $1.10 a year earlier.

“For the first half of the year, we reported net sales growth of more than 5% and adjusted operating income growth of almost 10%,” Rainey said in the call. “We are raising our full-year (2025) guidance to reflect strong first-half results.”

Walmart now expects fiscal 2025 adjusted EPS (diluted) of $2.35 to $2.43, up from the previous forecast of $2.23 to $2.37. Growth for consolidated net sales was raised to 3.75% to 4.75% from 3% to 4%. Likewise, the growth range for adjusted operating income was lifted to between 6.5% and 8% from between 4% and 6%.

“Looking at the second half of the year, we expect the business to achieve sales growth in line with our financial framework and for sustained structural improvements in incremental margins,” Rainey said. “This should result in operating income growing slightly faster than sales when looking at the second half in total.”