Walmart Q2 EPS falls short of expectations, raises FY guidance
By Iain Gilbert
Date: Thursday 21 Aug 2025
(Sharecast News) - Retail giant Walmart reported a rare quarterly earnings miss on Thursday despite delivering solid top-line growth and operational gains.
Walmart posted second-quarter adjusted earnings per share of $0.67, falling short of expectations of $0.73, largely due to a $0.11 net investment loss.
Nonetheless, the retail giant reported a 4.8% year-on-year increase in revenue to $169.3bn, supported by strong performance across its store, club, and digital channels.
Adjusted operating income rose 7.2% to $6.4bn, reflecting improved margin discipline and cost control, as gross margins expanded by 43 basis points, aided by higher membership income and reduced digital losses. Inventory levels declined 2.0%.
Walmart also revealed its eCommerce unit had remained a standout in Q2, growing 21% globally, citing increased demand for store-fulfilled pickup and delivery, alongside continued expansion of its third-party marketplace.
However, despite the EPS miss, Walmart raised its full-year guidance, pointing to broad-based strength and sustained consumer engagement.
Chief executive Doug McMillon said: "Our team delivered another strong quarter. They work hard every day to help our customers and members save time and money. Each part of our business is growing - store and club sales are up, eCommerce is compounding as we layer on pickup and even faster growth in delivery as our speed improves. Our newer businesses like marketplace, advertising, and membership, are also contributing, diversifying our profits and reinforcing the resilience of our business model."
Reporting by Iain Gilbert at Sharecast.com
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