In a recent earnings report, Walmart (WMT) has shown impressive performance, surpassing both revenue and profit expectations for the second quarter of 2025. The retail giant reported a revenue of $169.34 billion, exceeding Wall Street's forecast of $168.46 billion, marking a robust 4.8% increase compared to the previous year. Adjusted earnings per share (EPS) also beat estimates, coming in at $0.67—higher than the anticipated $0.65 and reflecting a 9.8% year-over-year increase.
Walmart's positive results were driven by strong growth across multiple sectors. The company noted significant improvements in both its physical stores and e-commerce platforms. In particular, the U.S. division saw a 4.3% increase in same-store sales, with Walmart's core business rising by 4.2% and Sam's Club seeing a 5.2% uptick. The grocery sector continued to be a key driver, contributing significantly to higher foot traffic and larger average transaction sizes.
CEO Doug McMillon emphasized that Walmart’s diverse business model, including its growing online marketplace, membership program, and advertising revenue, played a crucial role in these results. The company’s global ad business grew by 26%, demonstrating the success of its strategic investments outside traditional retail.
Despite the strong performance in the first half of the year, Walmart adopted a cautious approach for the latter part of 2025. The company raised its full-year sales forecast to a range of 3.75% to 4.75% growth and adjusted EPS expectations to between $2.35 and $2.43. This is an improvement from the previous guidance, which anticipated sales growth at the high end of 3% to 4% and EPS between $2.23 and $2.37.
However, Walmart's outlook for the second half of 2025 is more reserved. The retailer expects third-quarter adjusted earnings of 51 to 52 cents per share, slightly below the 54 cents anticipated by analysts. Chief Financial Officer John David Rainey noted that while the company remains optimistic about its current performance, it is mindful of potential economic uncertainties, including geopolitical tensions and domestic political developments.
Walmart's international operations also contributed positively, with a 7.1% increase in sales, driven by both physical store expansions and growth in online business. The company's efforts to attract higher-income consumers through improved value propositions and new product lines, such as the Bettergoods private label, have been effective.
This strong performance is reflected in Walmart's stock price, which has risen nearly 31% year-to-date, significantly outperforming the S&P 500's 14% gain. As Walmart continues to navigate the evolving retail landscape and economic conditions, its ability to balance growth with caution will be crucial in maintaining its market leadership.
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