Walmart ( WMT ) reported another solid quarter as its business proves resilient against discerning consumers and sticky inflation.

In Q2, revenue grew 4.8% to $169.34 billion, compared to the $168.46 billion expected. Adjusted earnings also beat estimates at $0.67, a 9.8% year over year increase.

"Each part of the business is growing," CEO Doug McMillon said in the release. "Store and club sales are up, eCommerce is compounding as we layer pickup and even faster growth in delivery as our speed improves."

He added that its online marketplace, membership model, and ad business (which grew 26% globally) helped to diversity the retailer's profits.

US same-store sales are up 4.3%, including a 4.2% increase for its namesake Walmart business, and 5.2% jump for Sam's Club, according to Bloomberg estimates.

Groceries remain a key business, 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, prior to the results. "People are seeking value, people are trying to stretch their dollars."

In the Walmart US business, the company said it continued to gain share across all income cohorts, including upper-income households, due to its "value convenience proposition."

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."

"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," UBS analyst Michael Lasser told Yahoo Finance .

Its international business saw sales grow 7.1%, as it ramps up store count and its online business.

Earnings breakdown

Here's what Walmart reported for its fiscal year 2025 second quarter, compared to Bloomberg estimates:

Revenue: $169.34 billion versus $168.46 billion

Adjusted earnings per share: $0.67 versus $0.65

Overall same-store US sales growth: 4.30% versus 3.41%

Walmart US same-store sales growth: 4.20% versus 3.43%

Sam's Club US same-store sales growth: 5.20% versus 3.90%

For its fiscal 2025, Walmart now expects sales to grow between 3.75% to 4.75%, with adjusted EPS coming in between $2.35 and $2.43. That's compared to previous guidance of net sales up on the higher end of 3% to 4%, and adjusted EPS in the range of $2.23 to $2.37.

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