10-Q · May 29, 2026
Walmart reported strong Q1 FY27 results with total revenue of $177.75 billion, a 7.3% increase from the prior year, and a diluted EPS of $0.66, which was in line with expectations. Segment performance showed notable…
Earnings analysis · 10-Q
WMT earnings analysis
Filed August 28, 2026 · Our reading of the company's report
The latest report
Walmart delivered solid operating performance in the quarter, with revenue of $187.937 billion, operating income up 28.8% to $9.383 billion, and operating margin expanding 89 basis points to 5.0%. Growth was…
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Walmart delivered solid operating performance in the quarter, with revenue of $187.937 billion, operating income up 28.8% to $9.383 billion, and operating margin expanding 89 basis points to 5.0%. Growth was broad-based, led by International and Sam's Club U.S., while eCommerce sales rose 23%. However, reported diluted EPS declined $0.08 year over year to $0.80 because prior-year other gains reversed to a $1.2 billion net loss, and higher capital spending reduced six-month free cash flow by $1.4 billion.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.8
What stood out
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Revenue grew 5.9% year over year
Total revenue increased 5.9% year over year to $187.937 billion for the quarter, including $186.100 billion of net sales and $1.837 billion of membership and other income.
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Tariff refunds lifted gross margin
Gross margin improved to 25.4% from 24.5% a year earlier, a 96-basis-point increase, primarily due to approximately $2.9 billion of tariff refunds and growth in higher-margin businesses such as advertising.
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Operating profit grew 28.8%
Operating income increased 28.8% year over year to $9.383 billion, while operating margin expanded to 5.0% from 4.1%, despite higher claims, depreciation and healthcare costs.
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Growth was broad across segments
All reportable segments grew: Walmart U.S. net sales rose 3.5% to $125.189 billion, International rose 12.8% to $35.198 billion, and Sam's Club U.S. rose 8.8% to $25.713 billion including fuel.
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eCommerce and clubs remained strong
eCommerce net sales increased $8.2 billion, or 23%, for the quarter, primarily driven by store- and club-fulfilled delivery. Walmart U.S. and Sam's Club U.S. comparable sales increased 3.3% and 8.6%, respectively.
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Operating cash flow improved
Six-month operating cash flow increased to $19.710 billion from $18.352 billion, although six-month free cash flow declined to $5.529 billion from $6.943 billion as capital expenditures rose to $14.181 billion from $11.409 billion.
What to watch
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Earnings benefited from tariff refunds
The company received approximately $2.9 billion of tariff refunds in the quarter, which reduced cost of sales; management expects continued price investment through fiscal 2027. Future results could be pressured if comparable refunds are unavailable or tariffs and trade restrictions change.
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Expense inflation offsetting growth
Operating expenses rose to 21.4% of net sales from 21.2% a year earlier, driven by higher self-insured general liability claims, depreciation and healthcare costs. Walmart U.S. operating expenses increased to 23.5% of sales from 22.8%.
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Higher capex reduced free cash flow
Six-month free cash flow fell $1.4 billion year over year to $5.529 billion because capital expenditures increased $2.8 billion to $14.181 billion, raising capital intensity while the company continues investing in omnichannel growth.
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Working capital deficit widened
The working capital deficit widened to $26.9 billion from $21.5 billion a year earlier, primarily due to increased short-term borrowings and payment timing. Cash and cash equivalents were $11.5 billion, including $5.0 billion that may not be freely transferable to the U.S.
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Debt increased amid investment
Total outstanding long-term debt increased $1.8 billion during the first six months to $39.932 billion, including $3.470 billion due within one year. The company also had $15.0 billion of committed U.S. credit lines, all undrawn, as of July 31, 2026.
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Legal and regulatory exposures remain
The 10-Q states that no material change occurred in the risk factors from the fiscal 2026 Form 10-K. Nevertheless, disclosed matters include approximately 118 opioid-related MDL cases as of August 21, 2026 and potential EPA penalties exceeding $1 million related to alleged Clean Air Act violations.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management expects continued prioritization of price investment through fiscal 2027 and states that liquidity should be sufficient for at least the next 12 months and the foreseeable future. Fiscal 2027 annual dividend is $0.99 per share.
Earlier filings 4
10-K · March 13, 2026
Walmart reported fiscal 2026 total revenues of $713,163 million and net sales of $706,413 million, up 4.7% year-over-year, with consolidated net income of $22,270 million and diluted EPS of $2.73. Management continues…
10-Q · December 3, 2025
Walmart reported total revenues of $179,496 million and diluted EPS of $0.77 for the three months ended October 31, 2025, beating consensus on revenue and EPS. Gross profit and operating income were effectively flat…
10-Q · August 29, 2025
Walmart reported quarterly total revenues of $177,402 million and diluted EPS of $0.88 for the three months ended July 31, 2025, driven largely by non-operating investment gains. Operating income declined to $7,286…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.