Lydia Hu discusses President Donald Trump pausing the proposed 50% tariffs on Canadian goods after reaching a trade deal. Ontario Premier Doug Ford warns of major job losses before the pause.
Walmart has received nearly $3 billion in tariff refunds and says it will use some of the benefit to help keep prices low for shoppers, while the windfall also gave quarterly profit growth a significant boost.
The company said it “prioritized investment in price” after receiving refunds tied to tariffs imposed under the International Emergency Economic Powers Act, or IEEPA.
The refunds came as Walmart continued leaning into its value proposition. The retailer pointed to more than 11,000 price rollbacks across its U.S. stores during the quarter.
“We’re investing in prices because customers are looking to us for value,” the company said in an earnings release.
WALMART E-COMMERCE SALES SURGE AS CEO TOUTS ‘PRICE, SPEED AND CONVENIENCE’
Customers shop at a Walmart store on May 18, 2023 in Chicago, Illinois. (Scott Olson/Getty Images / Getty Images)
The tariff refunds also provided a substantial boost to Walmart’s quarterly earnings. Adjusted operating income rose roughly 17% on a constant-currency basis, with the refunds contributing a 750-basis-point net benefit.
Excluding that benefit, Walmart said underlying operating income growth still reached the top end of its previous 7% to 10% second-quarter guidance.
Sales also continued to rise. Total revenue increased 5.9%, while comparable sales at Walmart U.S. grew 2.6%, excluding fuel.
Miami Doral Florida, Walmart Supercenter, frozen foods aisle glass door freezers, women shoppers adults pushing carts. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images) (Jeffrey Greenberg/Universal Images Group via Getty Images / Getty Images)
Walmart’s digital businesses posted faster growth. Global e-commerce sales increased 23%, including a 24% gain at Walmart U.S. and 26% growth at Sam’s Club U.S.
Store-fulfilled delivery at Walmart U.S. jumped 40% during the quarter, while marketplace net sales increased more than 50%.
Customers shop at a Walmart store on May 13, 2026 in Chicago, Illinois. (Scott Olson/Getty Images / Getty Images)
The retailer said stronger sales, improving business economics and continued investment in pricing and technology gave it confidence to raise its sales and operating-income growth guidance for the year.
Walmart generated $19.7 billion in operating cash flow during the period, along with $5.5 billion in free cash flow.
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The tariff refunds add another lever to Walmart’s push to hold down prices as it competes for value-conscious shoppers while expanding its higher-growth e-commerce, marketplace and delivery businesses.
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