Walmart ( WMT ) is set to report another solid quarter even as cautious consumers become more discerning with their dollars.

For its fiscal 2025 Q2, America's biggest retailer is expected to see revenue growth of 4.23% to $168.46 billion, while adjusted earnings per share are expected to jump 5.22% to $0.65.

US same-store sales are expected to increase 3.41%, with Sam's Club up 3.9%, and its namesake business up 3.43%, according to Bloomberg estimates. Groceries remain a key business for Walmart, a major factor behind higher foot traffic and ticket size.

"Grocery, consumables, and essentials ... will still be the key driver," Joe Feldman of Telsey Advisory Group told Yahoo Finance over the phone. "People are seeking value, people are trying to stretch their dollars."

UBS analyst Michael Lasser expects to hear the "consumer overall has been consistent."

"Keep in mind that Walmart sells mostly groceries and other household products, and it's taking market share, so what it has been experiencing is going to be a bit different than what other retailers have been experiencing," Lasser told Yahoo Finance .

Groceries account for roughly 60% of Walmart's US sales. This past quarter, it introduced a private label brand called Bettergoods , which offers healthier, higher-quality products at a $5 price point.

CFRA analyst Arun Sundaram said the retailer is looking to keep the higher-income households it gained by making shoppers think, "Hey! This is not the Walmart from 10-15 years ago."

Earnings breakdown

Here's what Wall Street expects for Walmart's fiscal year 2025 second quarter, compared to Q2 last year:

Revenue: $168.46 billion compared to $161.63 billion

Adjusted earnings per share: $0.65 compared to $0.61

Overall same-store US sales growth: 3.41% compared to 6.30%

Walmart US same-store sales growth: 3.43% compared to 6.40%

Sam's Club US same-store sales growth: 3.90% compared to 5.50%

As of Q1, the company expected net sales to grow on the higher end of 3% to 4%, and operating income to grow on the higher end of 4% to 6% for fiscal year 2025.

Walmart's CFO John David Rainey said on its Q1 earnings call that the copmany plans to "revisit our full-year guidance as we exit [the] second quarter."

"This is more aligned with our historic cadence of updates, and consistent with the philosophy we have as a management team to recognize early momentum, but to also maintain prudence early in the year given the macro uncertainty and so much of the year is still ahead of us," he said.

UBS's Lasser expects Walmart will raise its full-year guidance. Shares of Walmart are up 27.5% so far this year, compared to a 14% gain for the S&P 500 ( ^GSPC ).

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BrookeDiPalma