📊 PRO: This Week in Visuals
Welcome to the Saturday PRO edition of How They Make Money . Over 300,000 subscribers turn to us for business and investment insights. In case you missed it: ☁️ Neocloud Economics 💰 Wall Street’s Top Stocks in Q2 Subscribe now Premium members get: 📊 Monthly reports : 200+ companies visualized. 📩 Tuesday articles : Exclusive deep dives and insights. 📚 Access to our archive : Hundreds of business breakdowns. PRO members get everything PLUS : 📩 Saturday PRO reports : Timely insights on the latest earnings. Today at a glance: 🛒 Walmart : Digital Outruns Stores ⚙️ Analog Devices : Grid-to-Chip Breakout 🎮 NetEase : Evergreen Games Deliver 🎯 Target : Traffic Holds Up ⛷️ Amer Sports : Wilson Joins In 💳 Klarna : GMV Reset 1. 🛒 Walmart: Digital Outruns Stores Walmart Q2 FY27 revenue rose 6% Y/Y to $187.9 billion ($1.1 billion beat), with adjusted EPS of $0.81 ($0.07 beat). Walmart US comps slowed to 2.6% , the weakest growth in more than six years and below the 3.7% consensus, sending shares sharply lower. Transactions still grew 1.5%. The headline slowdown is somewhat misleading. New federal drug-pricing rules created a roughly 125 bps drag on US comps. Excluding Health & Wellness, comps grew 3.4%. Walmart also used some of its tariff refunds to cut prices on more than 11,000 items. The company continues gaining share, particularly in grocery and among higher-income households. Meanwhile, the businesses increasingly driving Walmart’s economics remain much stronger than store sales: Global e-commerce grew 23%. Advertising surged 38%. Membership fee revenue increased 17%. Walmart US e-commerce has now grown above 20% for 10 consecutive quarters, with profitability improving as stores increasingly function as fulfillment hubs rather than simply physical retail locations. Fuel remains a challenge, with FY27 incremental fuel costs now expected above $2 billion . Walmart is also expected to continue reinvesting tariff refunds into lower prices, contributing to Q3 adjusted EPS guidance of $0.62–$0.64, which is below consensus. Despite that reinvestment, Walmart raised FY27 sales growth guidance to 4%–5% (from 3.5%–4.5%) and adjusted operating income growth to 7%–8.5% (from 6%–8%). Bottom Line: Slower US comp reflects pharmacy pricing rather than lost share. The more important shift continues underneath, with e-commerce, advertising, membership, and marketplace growing far faster than traditional stores. Walmart increasingly looks less like a retailer with digital businesses attached and more like an omnichannel platform funded by retail. 2. ⚙️ Analog Devices: Grid-to-Chip Breakout
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