Walmart delivered a solid QQ2 2026 performance with resilient top-line growth and improving contributions from higher-margin, faster-growing businesses. Revenue rose 5.6% in constant currency to $177.4 billion, led by a 25% rise in global e-commerce and double-digit growth across key segments, including Walmart US (comp up 4.6%), Sam’s Club US (comp up ~5.9%), and international sales (+10.5% in constant currency). The company continued to gain market share across geographies and channels, supported by a broad-based acceleration in advertising and membership revenue (advertising up 46%, US Walmart Connect up 31% ex Visio; membership income up >15% globally). On the margin side, gross margin expanded modestly (GAAP up 4 bps, adjusted up 9 bps excluding an $80 million Sam’s restructuring charge), while adjusted operating income grew about 0.4% in constant currency as higher US claims costs created a compression in the quarter. Management flagged a 560 basis-point headwind from US general liability and workers’ compensation claims, reflected in the guidance but not altering the long-term profit-growth trajectory. Inventory remained healthy (global +3.8%, US +2.2%), and management reaffirmed a path to growing profit faster than sales for FY26. The company also signaled a meaningful strategic push into AI with organizational and product roles established (Sparky, AI platforms) and a multi-agent vision to augment customers, associates, suppliers, and developers. Importantly, Walmart raised its full-year sales growth guidance by 75 basis points to 3.75%–4.75% in constant currency and provided a Q3 range of 3.75%–4.75% CC growth, underscoring confidence in the back-half dynamics and share gains. Investors should monitor tariff/currency trajectories, gross margin discipline, inventory flow, and the evolving contribution of non-grocery categories (advertising, membership, e-commerce profitability) to OFFSET near-term margin headwinds while leveraging AI-driven productivity and omni-channel advantages.