Walmart on Thursday reported quarterly sales that beat Wall Street estimates and raised its full-year outlook as the company posted renewed strong e-commerce growth and benefited from tariff refunds.

“Our business is strong,” CFO John David Rainey told CNBC. “We’re really happy with the progress we’re making.”

The retailer said sales rose 5.9% in its fiscal second quarter, while global e-commerce sales rose 23%. Walmart also said U.S. comparable sales rose 2.6%, partially offset by a 0.8% headwind in its health and wellness business as price caps on certain medications took effect. That was less than Wall Street’s expected 3.5% rise, according to FactSet.

Shares of Walmart closed about 9% lower on Thursday as Wall Street appeared disappointed with the company’s comparable quarterly sales and revenue forecast.

For the third quarter, Walmart expects net sales to increase between 3% and 3.75% and adjusted earnings per share to range between 62 cents and 64 cents.

The retailer expects net sales to grow between 4% and 5% for the year, compared to previously forecast growth of between 3.5% and 4.5%. Walmart also expects adjusted earnings to be between $2.80 and $2.87 per share, compared to its previous forecast of $2.75 to $2.85 per share.

Walmart logo sign is seen on August 3, 2026 in Chicago, Illinois.

Marcin Golba | Photo only | Getty Images

Rainey told CNBC that the company is entitled to about $2.9 billion in duty refunds, but it has not yet received nearly $100 million of that. Rainey said Walmart plans to use these funds to lower prices for consumers and that the impact will be visible in the third quarter.

He added that Walmart also expects to incur just over $2 billion in “additional cost pressures related to higher fuel prices” this year.

Walmart’s efforts to cut prices come as many shoppers have cut back on spending, feeling burdened by high fuel and grocery costs. Because of its reputation and size as the largest U.S. retailer, the company is typically well-positioned to weather setbacks.

Rainey said Walmart continues to see consumer congestion, especially given higher gas prices. He added that this would bring down prices in all categories, including beef.

“But consumers are still spending and real wage growth is keeping pace, so they have proven very resilient in this environment,” Rainey told CNBC. “Nevertheless, we would like to see prices lower further and see less pressure on their wallets.”

Here’s how the company performed in the fiscal second quarter compared to Wall Street’s expectations, based on an LSEG analyst survey:

• Earnings per share: Adjusted to 81 cents, it was not immediately clear whether it was compared to the expected 74 cents
• Revenue: $187.94 billion versus expected $186.77 billion

For the three months ended July 31, Walmart reported net income of $6.37 billion, or 80 cents per share, compared with $7.03 billion, or 88 cents per share, in the year-ago period. Excluding the impact of a loss on investments and including a benefit from a so-called tax matter, Walmart reported adjusted earnings per share of 81 cents. The company’s gross profit ratio increased to 25.4%, boosted by the benefit of duty drawback.

Total revenue rose to $187.94 billion from $177.40 billion in the same period last year.

The results come at a time when Walmart is posting solid growth, driven by gains in segments such as pickup and delivery, its third-party marketplace and advertising. The discount retailer has gained market share among higher-income customers in recent years as it tries to make shopping more convenient and add perks to its Walmart+ membership Amazon main competitor.

According to Walmart, company-wide membership revenue increased 17%, with net new additions for Walmart+ reaching its highest level in the second quarter. Sam’s Club US reported net sales of $25.7 billion in the quarter, up 8.8% year over year, as membership fees rose 6%.

Meanwhile, Walmart said its global advertising revenue rose 38%.

In the U.S., Walmart reported net sales of $125.2 billion, compared to $120.9 billion in the same period last year. Internationally, the company reported net sales of $35.2 billion, down from $31.2 billion. Global inventory rose 6.7% in the quarter, it said.

Rainey said a significant portion of that inventory is in more expensive and upscale brands, as Walmart sees most of its market share gains among high-income consumers.

While the grocery segment saw mid-single-digit growth, the health and wellness segment saw a low-single-digit decline in the quarter. General merchandise sales increased slightly due to strength in toys and fashion, furniture and private label.

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