Walmart Inc. (WMT) shares are experiencing a significant surge on Thursday, driven by the company’s impressive second-quarter 2025 results and an upward revision to its full-year guidance. The retail giant reported adjusted earnings per share (EPS) of $0.67, exceeding analyst expectations of $0.64. This represents a year-over-year increase of 9.8%. Additionally, Walmart’s sales reached $169.34 billion, surpassing the consensus estimate of $168.57 billion.
Looking ahead, Walmart anticipates adjusted EPS of $0.51 to $0.52 for the third quarter, compared to the consensus forecast of $0.55. The company expects its net sales to grow by 3.25% to 4.25% during this period.
JP Morgan analyst Christopher Horvers, who holds an Overweight rating on WMT, expects a positive stock price reaction. He attributes this optimism to the strong performance despite concerns surrounding the consumer market and fears of an economic slowdown in the latter part of the second quarter. Horvers highlights that Walmart’s gross margins surpassed market expectations both domestically and internationally. He acknowledges, however, that the company’s third-quarter guidance incorporates a timing shift related to certain events in the international segment.
While Horvers recognizes the positive aspects of the earnings report, he cautions that the absence of an upgraded forecast for the fourth quarter likely reflects a conservative approach due to ongoing uncertainties in consumer trends and potential headwinds in the second half of the year.
Walmart’s third-quarter guidance takes into account the timing of festive events in international markets and planned expenses, including the impact of Flipkart’s Big Billion Days sales, which can shift between the third and fourth quarters.
Investors interested in gaining exposure to Walmart can consider ETFs such as the Vanguard Consumer Staples ETF (VDC) and the SPDR Select Sector Fund – Consumer Staples (XLP).
As of the last check on Thursday, WMT shares were trading 6.55% higher at $73.15.
