BENTONVILLE, ARK. – Walmart continues to benefit as consumers of all income levels, including affluent customers, look for value when shopping in-store or online, President and CEO Doug McMillon said in announcing second-quarter fiscal 2025 results.

Adjusted earnings per share beat last year’s earnings per share and the high end of Wall Street’s forecast, although reported net income was impacted by investment losses. Total revenue rose 5% in constant currency, with sales rising in all three business units: Walmart US, Sam’s Club and Walmart International. Based on this performance, the world’s largest retailer raised its full-year forecast.

“We had another good quarter with strong revenue growth and even stronger earnings growth that exceeded our expectations,” McMillon told analysts on an Aug. 15 conference call. “The strength we saw for the quarter was broad-based. Our business outside the U.S. continues to drive revenue and earnings growth across the company.”

Walmart gained market share in the second quarter, including in the consumer goods category, and transaction count and unit volume increased in all markets, McMillon said.

“In the U.S., comparable sales (like-for-like sales) at both Walmart and Sam’s Club were relatively flat throughout the quarter,” he said. “Groceries continue to be strong, and it is encouraging to see improvements in general merchandise. Our U.S. health and wellness business at Walmart and Sam’s Club is contributing to our strong comparable sales, primarily due to sales of GLP-1 medicines.

“So far, we’re not seeing a weaker consumer overall. Our customers and members around the world continue to want four things: They want value, they want a wide range of items and services, they want a convenient and enjoyable shopping experience, and they want to do business with a company they trust. Those four things are constant, but the way we deliver them is changing – and fast. The results we’re delivering are due to real progress on those dimensions.”

Consolidated net income for the quarter ended July 31 was $4.5 billion, or 56 cents per share, down from $7.89 billion, or 97 cents per share, a year earlier. The 2025 quarter results reflected a pretax loss of 14 cents per share from equity and other investments, compared with pretax profit of 48 cents per share in the year-ago period, Walmart said. On an adjusted basis, diluted net income per share in the second quarter of 2025 was 67 cents, up from 61 cents a year earlier, beating analysts’ highest forecast of 66 cents.

“On the value side, we are cutting prices,” McMillon said. “During the quarter, both Walmart US and Sam’s Club US were slightly deflationary overall. Walmart US grocery prices were slightly inflated at the end of the second quarter, but were down 30 basis points from the first quarter. At Walmart US, we have more than 7,200 (price) cuts across all categories. Customers of all income levels are looking for value, and we deliver it.”

The bottom line is that Walmart’s sales rose 4.8% to $169.34 billion in the second quarter (previous year: $161.63 billion), with the increase being 5% when adjusted for currency effects. Operating profit rose 8.5% to $7.94 billion (8.8% when adjusted for currency effects).

Walmart’s core U.S. net sales rose 4.1% year over year to $115.35 billion. Comparable sales, excluding fuel, rose 4.2%, down from a 6.1% increase a year earlier. Customer transactions rose 3.6%, up from a 2.9% increase a year earlier, while the average ticket size increase was 0.6%, down from a 3.4% increase a year earlier. Walmart said e-commerce contributed 300 basis points to comparable U.S. sales, up from 230 basis points a year earlier. U.S. operating profit rose 7.8% to $6.59 billion.

“At Walmart US, sales growth of 4.2% was primarily driven by strong customer traffic and sales growth in stores and digital channels,” said John David Rainey, Walmart’s chief financial officer. “Customers continue to be discerning and picky, looking for value to make the most of their budget, while also valuing seasonal celebrations. Sales pace was largely consistent month-over-month during the quarter. Across all categories, we are offering low prices and capturing customer attention, including in general merchandise, with Walmart US sales growth in Hardlines, Home and Fashion.

“We are also seeing increased engagement across all income groups, with high-income households continuing to see the largest growth, even as we grow sales and market share among middle- and low-income households. We are continuing to see increased adoption of private labels and are very encouraged by customer acceptance of our new grocery brand, bettergoods.”

Sales at Sam’s Club rose 4.7% to $22.85 billion, while comparable sales excluding fuel rose 5.2% in the quarter, compared to a 5.5% increase a year earlier. The wholesale club chain reported a 6.1% increase in sales, compared to a 2.9% increase a year earlier. The average receipt decreased 0.8%, following a 2.5% increase in the year-ago period. E-commerce contributed 230 basis points to sales growth, up from 150 basis points a year earlier. Operating profit rose 11.5% to $581 million.

Walmart International’s net sales rose 7.1% to $29.57 billion, or 8.3% on a currency-adjusted basis. Operating profit rose 14.3% to $1.36 billion, or 15.7% on a currency-adjusted basis.

Overall, Walmart’s e-commerce sales increased 21%, with increases of 22% at Walmart US, 22% at Sam’s Club and 18% at Walmart International.

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

Walmart reported consolidated net income of $9.61 billion, or $1.19 per share, for the first half of fiscal 2025, slightly higher than $9.56 billion, or $1.18 per share, for the first half of fiscal 2024. Adjusted earnings per share (diluted) for the first half of fiscal 2025 were $1.27, compared to $1.10 a year ago.

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

Walmart now expects adjusted earnings per share (diluted) of $2.35 to $2.43 for fiscal year 2025, up from the previous forecast of $2.23 to $2.37. Consolidated net sales growth was increased from 3 to 4 percent to 3.75 to 4.75 percent. Likewise, the growth range for adjusted operating income was raised from 4 to 6 percent to 6.5 to 8 percent.

“For the second half of the year, we expect revenue growth in line with our financial framework and sustained structural improvements in incremental margins,” Rainey said. “This should result in operating profit growing slightly faster than revenue overall in the second half of the year.”