Walmart (WMT) reported US sales growth topped forecasts in its most recent quarter with the big box retailer's low-price strategy drawing consumers as tariff-related uncertainty pushed them to more carefully scrutinize their household budgets.

In the second quarter, total US same-store sales grew 4.6%. That's more than the 4.2% Wall Street predicted, per Bloomberg consensus estimates. Its wholesale subscription business, Sam's Club, saw the same metric grow 5.9%, the Street had forecast a 5.3% increase.

The company now expects net sales in its fiscal 2026 to increase between 3.75%-4.75%, up from a prior range of 3%-4% growth that the company reiterated in the prior quarter.

Walmart stock fell about 1% after the results as the company reported adjusted earnings per share of $0.68, below the $0.74 the Street had forecast. Revenue came in at $177.40 billion, better than the $176.05 billion Wall Street expected. Adjusted earnings per share are expected to come in between $0.58-$0.60 in the current quarter.

"The top-line momentum we have in our business comes from how we’re innovating and executing. Connecting with our customers and members through digital experiences is helping to drive our business, and the way we’re deploying AI will make these experiences even better," CEO Doug McMillon said in the release.

Walmart called out notable strength in its grocery and health & wellness categories driving its US sales growth. The company said its online marketplace categories including electronics, automotive, toys, and media & gaming grew more than 40%.

Investors will look for further insights on the call with investors around tariffs after the company said it would have to raise prices earlier this year.

Read more: 5 ways to tariff-proof your finances

Walmart CEO Doug McMillon told analysts in May, "We aren't able to absorb all the pressure given the reality of narrow retail margins."

He added that tariffs had already led to price increases in April and May.

At the time, McMillon said the "reset of costs" would continue throughout the year, adding that for an imported item, "You pay the tariff at the time it comes through customs ... even if the tariff rate comes down later, the cost has been elevated."

Robert Ohmes of Bank of America estimated Walmart imports roughly 15% of its US sales from China. Around 60% of the US sales are groceries, which are largely tariff-exempt if they're produced domestically or in Mexico and Canada.

Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.

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