Walmart Inc. (WMT) reports fiscal second-quarter 2027 earnings Thursday, Aug. 20 before market open, with analysts projecting diluted EPS of $0.74—up 8.8 percent from $0.68 in the year-ago quarter. The stock closed at $108.34, leaving 29 percent upside to the consensus price target of $140.08.
The setup is straightforward: Walmart has beaten consensus in three of its last four quarters. For full-year 2027, analysts forecast $2.89 EPS (up 9.5 percent), accelerating to $3.27 in 2028 (up 13.2 percent). The margin story is the call to own. Advertising and membership revenue—both higher-margin streams—are growing faster than core retail, offsetting sluggish traffic metrics.
Headwinds exist. First-quarter fuel costs near $4 per gallon knocked $175 million from operating income. Spend-per-visit growth slowed to 1.1 percent. Stock gained just 13.3 percent over 52 weeks versus the S&P 500's 16.5 percent, underperforming despite solid 7.3 percent top-line growth in Q1 (revenues $177.8 billion).
The bull case hinges on margin expansion. Q1 saw eCommerce acceleration and general merchandise recovery. Advertising and membership fees are the true earnings drivers going forward—expect analysts to press CEO John Furner on the growth trajectory of these businesses during the call. His commentary on consumer spending patterns and fourth-quarter guidance will set the tone.
Consensus is decidedly bullish: 29 of 39 analysts rate Strong Buy; six say Moderate Buy; four Hold. Revenue guidance for Q2 is pegged at $186.3 billion to $186.9 billion (5 to 6 percent year-over-year growth). Watch for management commentary on margin pressure from fuel and labor costs versus the offsetting lift from higher-margin revenue streams.
The catalyst is clear. If Walmart affirms or raises full-year EPS guidance and signals accelerating ad and membership growth, the stock closes the gap to $140 quickly.
