Walmart Q2 Earnings Beat Estimates but Can Higher Costs Limit Upside?

Walmart beat Q2 earnings expectations with 5.9% revenue growth and 19.1% EPS increase to 81 cents, while raising fiscal 2027 guidance. However, rising healthcare, fuel, and depreciation costs, combined with increased capital expenditures (4% of sales vs. 3.5% prior guidance), may limit near-term profit growth and cash conversion despite strong digital momentum.