E-Commerce Is Growing, But Walmart's Stores Matter More Than Ever

Walmart's U.S. business posted year-over-year growth of more than 1% in both transactions and average ticket size in the second quarter, while e-commerce sales climbed 24%. According to CFO John David Rainey, online sales now make up more than 23% of Walmart's U.S. sales mix — twice what it was five years ago.

Despite the impact of new drug-pricing regulation, Walmart US comparable sales rose 2.6%, or 3.4% excluding the health segment. Walmart Inc.'s total revenue grew 5.9% year-over-year to $187.9 billion, while operating income jumped 28.8% to $9.4 billion. The company raised its full-year fiscal 2027 net sales guidance from a previous 3.5–4.5% to 4–5%.

Rainey emphasized that the role of stores is shifting as the model itself evolves: "The more omnichannel we become, the more important our stores become — not less, but more. Between in-store purchases and digital fulfillment, we're now moving more unit volume through our stores than ever before — they serve as the last-mile hub for 80% of our e-commerce orders and 100% of our expedited delivery."

Analysts note that Walmart is operating from a position of strength. Jefferies analysts said "the key trends are supported by transaction growth, broad-based market share gains, and continued strength across e-commerce, advertising, marketplace, and membership." While U.S. comparable sales came in below expectations, TD Cowen analysts said they were encouraged by Walmart's "ability to grow market share and grow profit faster than sales."

Tariff refunds also boosted the results: according to Rainey, Walmart has now received nearly all of an expected $2.9 billion in tariff refunds, which partly explains the 96-basis-point rise in gross margin and the increase in operating income.