Walmart posts solid quarter; extends associate discount to groceries

Walmart reported a solid quarter by revenue and customer momentum, even as tariff costs and higher claims pressure margins. The retailer posted about 177.4 billion in quarterly sales, supported by strong gains in its U.S. grocery and health categories, while raising its full-year sales and profit outlook. In a move aimed at protecting its affordability edge, Walmart extended its employee discount to cover nearly all grocery items, signaling a continued focus on cost of living concerns for both workers and customers.

In the quarter ending July 31, Walmart’s revenue rose about 5% from a year earlier, and U.S. same-store sales advanced around 4.6%. Online commerce continued to accelerate, with U.S. e-commerce up roughly 26% and global e-commerce up about 25%. Management highlighted that higher-margin segments—advertising revenue and membership fees—helped cushion margin pressure, even as operating costs rose. The company also noted the ongoing impact of tariff-related costs, recording an incremental 450 million in general liability and workers’ compensation claims that weighed on bottom-line profitability.

On the earnings line, adjusted earnings per share came in at 68 cents, below...