Wayfair Inc. reported strong financial results for the second quarter of 2025, surpassing Wall Street expectations. The online furniture retailer posted revenue of $3.27 billion, exceeding the estimated $3.12 billion and representing a 5% year-over-year increase. Adjusted earnings per share (EPS) came in at $0.87, more than doubling the consensus estimate of $0.33. Gross profit reached $984 million with a gross margin of 30.1%, while adjusted EBITDA was $205 million, corresponding to a 6.3% margin. The company recorded a net income of $15 million, a turnaround from a net loss of $42 million in the same quarter last year. Operating income stood at $17 million. These results mark Wayfair's highest revenue growth and profitability since 2021. Following the earnings release, Wayfair's shares surged approximately 9.5% to 10.4% in pre-market trading. The strong performance has also led to upgrades from analysts, with Citi raising Wayfair's rating to Buy from Neutral and increasing the price target to $93, citing the company’s potential to gain market share and resilience against tariff impacts. Additionally, Erste Group upgraded Walmart to Buy from Hold, forecasting sales growth of 3%-4% and operating income growth of 3.5%-5.5% year-over-year, while downgrading Costco to Hold due to expected weaker sales growth and high valuation concerns.