Walmart’s Winning Streak — Big Gains for Big Box Giant

On August 15, retail giant Walmart Inc. (NYSE: WMT) released its Q2 earnings results — and it’s got investors wondering if they should should get in on the action sooner rather than later.

First, let’s quickly touch on the most important points: 

• Walmart delivered an earnings beat, posting an EPS of $0.67, compared to the consensus estimate of $0.64. Walmart’s last 6 earnings have been beats (with one exception, where the consensus estimate was spot on).
• In terms of revenue, Q2 2025 saw $169.3 billion added to Walmart’s checkbook — surpassing estimates of $168.52 billion, and adding up to a 4.8% increase YoY
• WMT’s advertising business grew by 26%, with Walmart Connect in the U.S. seeing a 30% increase, indicating a strong demand for digital advertising solutions on the platform.
• Walmart U.S. reported a 4.2% increase in comparable sales, together with a 7.8% increase in operating income 
• Walmart International also delivered strong results, with net sales growing by 7.1% (8.3% in constant currency) and operating income rising by 14.3% (15.7% in constant currency). 

Before we move on to more in-depth discussions, let’s discuss where the stock is at. Currently, WMT is trading at around $72 to $74, which represents a price increase of 37.25% YTD. 

Chart courtesy TradingView

As a would-be investor, you may be wondering … Has the opportunity passed? Perhaps not. For one, the stock’s current P/E ratio of 31.23x, while higher than the market average of 26.74x, is still far more appealing than the discount store industry average of 36.85x. Secondly, there are quite a few things in the latest earnings release that warrant optimism: 

• Walmart’s expansion into the e-commerce space seems to be going swimmingly. Walmart's eCommerce segment posted impressive results in Q2 FY25, with global sales up 21%. This growth was primarily driven by a 22% increase in the U.S., where store-fulfilled pickup and delivery played a key role. 
• The company’s digital marketplace also saw strong performance, contributing roughly 300 basis points to Walmart U.S.'s comparable sales. Internationally, eCommerce sales grew 18%, with significant gains in markets like India and Mexico.
• Sam's Club U.S., another vital segment, recorded a 4.7% increase in net sales, with a 5.2% rise in comparable sales excluding fuel. Operating income for Sam’s Club surged by 11.5%, supported by strong growth in food, health, and wellness categories. Membership income also grew by 14.4%.
• Investors should also note that Walmart has revised its guidance upwards, with expectations for FY25 net sales growth between 3.75% and 4.75%, and adjusted operating income growth of 6.5% to 8.0%. This bullish outlook, coupled with a strong balance sheet and ongoing share buybacks, makes Walmart an attractive option for those seeking stability and growth in a volatile market.

Also worth noting? In the past week, WMT has received 17 Buy or Strong Buy ratings from analysts we track. (See what they’re saying here.) Currently, the top 1-year forecast suggests 17% additional upside from the current stock price ($73.72 at closing yesterday).

The bottom line? As the world’s largest company by revenue and the largest private employer in the world, WMT has a level of heft and stability that is rarely seen. It’s an even rarer sight to see such a giant deftly manage a rapidly changing business landscape to unlock new value for shareholders.

—> See our 38 due diligence checks on WMT

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