Walmart Inc. Q2 FY2026 earnings call

• Strong top-line growth with sales up 5.6% in constant currency. E-commerce sales grew 25% globally. - Walmart US comp sales grew 4.6%, international sales up 10.5% in constant currency. - Sam's Club US comp sales ex fuel up 5.9% driven by unit growth. - Inventory composition in good shape. - AI initiatives: Daniel Denker joined to lead AI acceleration, new role for AI platforms; Sparky and other super agents being developed. - Rollbacks: ~7,400 rollbacks across assortment, 30% increase in grocery rollbacks vs last year.

Walmart US: Q2 comp sales grew 4.6%, e-commerce sales grew 26%. Gross margin impacted by merchandise category mix. Walmart International: Sales up 10.5% in constant currency, led by China, Walmex, and Flipkart. Sam's Club US: Comp sales ex fuel up 5.9% (entirely unit driven), e-commerce grew 26%, membership income up. Revenue contribution: Walmart US, Walmart International, and Sam's Club US each contributed to overall growth with specific growth rates and key drivers.

• Raised full-year sales growth guidance in constant currency to 3.75% - 4.75%. - Q3 constant currency sales growth expected to be 3.75% - 4.75%. - Q3 operating income expected to be in 3% - 6% growth range. - Annual adjusted operating income growth guidance remains 3.5% - 5.5% on constant currency basis despite claims expense.

• General liability claims in US caused a headwind of 560 basis points to adjusted operating income. - Uncertainty around cost of goods and price environment, trade policy discussions. - Impact of tariffs on inventory costs and customer behavior.

Q: Talk about underlying profitability masking and AI impact A: Doug McMillon said AI is early days but exciting, John David Rainey noted e-commerce momentum and business strength Q: Dynamics of competitor grocery delivery announcement A: Doug McMillon said competition keeps getting better, focus remains on customer needs Q: Dispelling concern about margin result being one-off A: John David Rainey said unexpected expenses happen but long-term trend is positive Q: Inventory health entering back half A: John Furner and Chris Nicholas said inventory levels good, units accelerating, clean sell-through Q: Price changes and consumer response A: Doug McMillon said business model flexibility helps, customers make rational trade-offs Q: International strategy update A: Kath McLay talked about e-com growth, China store openings, India QuickCommerce, Canada/Mexico platform integration Q: E-commerce profitability globally A: John David Rainey and John Furner discussed global e-commerce progress, contribution to operating income Q: Gross margin scenarios in back half A: Doug McMillon said merchants managing well, focus on preserving flexibility Q: US gross margin details A: John Furner said merchants mixing business, focus on inventory management and customer value Q: AI competitive advantages and brand roadmap A: Doug McMillon, John Furner, Chris Nicholas, Kath McLay discussed data, physical supply chain, customer trust, and brand roadmap for higher-income customers Q: New ad campaign reaction A: John Furner said excited about campaign, monitoring results Q: Consumer cohorts and capital allocation A: John Furner said growth across income cohorts, John David Rainey talked about capital allocation and stock buybacks Q: Holiday season outlook A: Doug McMillon said confident in holiday season based on back to school and store manager meeting insights