Walmart Inc

Strong quarter; strategy “reinforcing” across retail + faster-growing profit pools - CEO John Furner highlighted that Walmart’s strategy is working because core retail + marketplace/advertising/membership strengthen each other as they scale. - Underlying performance largely matched expectations; Walmart continues to gain market share (notably via transactions/units and membership strength).

Top-line + profit beat driven by e-commerce, Marketplace, advertising, and membership (tariff refunds helped reported results) - Enterprise net sales: +5% constant currency, at the top end of guidance (4%–5%). - Adjusted operating income: +17.4% constant currency (reported benefited from tariff refunds). - Adjusted EPS: +19% (incremental improvements across digital + commerce solutions). - Key growth metrics: - Global e-commerce: +23% (Walmart U.S. 10th consecutive quarter >20% growth, and Walmart U.S. e-commerce grew 24% in Q2). - Marketplace: +52%; Marketplace fulfilled via Walmart Fulfillment Services ~50% of marketplace net sales (nearly +400 bps YoY). - Advertising: +38% (Walmart Connect up 43% in Walmart U.S.; Flipkart ads also strong). - Membership fee revenue: +17% globally; Walmart+ had best first half growth in its history; Sam’s membership also grew.

Retail growth steady but “health & wellness” is the swing factor; regulation headwind more severe than hoped - Walmart U.S. comp sales: +2.6% led by transactions; Sam’s Club U.S. comps: +4.4%. - International: +7.9% (led by China + India). - Unexpected negative: “Maximum fair pricing”/drug regulation reduced U.S. comp by ~125 bps in the quarter. - Management stressed this is mostly a top-line issue; they are pleased with health & wellness profits/contribution.