Walmart Inc.
For the period ended Jan 31, 2026. Filed Mar 13, 2026.
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FY2026 · Filed Mar 13, 2026
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Item 7. Results of Operations
Results of Operations
Consolidated Results of Operations
| Fiscal Years Ended January 31, | |||
|---|---|---|---|
| (Dollar amounts and retail square feet in millions) | 2026 | 2025 | 2024 |
| Net sales | $706,413 | $674,538 | $642,637 |
| Percentage change from comparable period | 4.7% | 5.0% | 6.1% |
| Membership and other income(1) | 6,750 | 6,447 | 5,488 |
| Total revenues | 713,163 | 680,985 | 648,125 |
| Percentage change from comparable period | 4.7% | 5.1% | 6.0% |
| Gross profit(2) | 171,018 | 162,785 | 152,495 |
| Operating expenses(2) | 147,943 | 139,884 | 130,971 |
| Operating income | 29,825 | 29,348 | 27,012 |
| Other (gains) and losses | (2,075) | 794 | 3,027 |
| Consolidated net income | $22,270 | $20,157 | $16,270 |
| Percentage of net sales | |||
| Gross profit | 24.2% | 24.1% | 23.7% |
| Operating expenses | 20.9% | 20.7% | 20.4% |
| Operating income | 4.2% | 4.4% | 4.2% |
| Retail unit counts at period end | 10,955 | 10,771 | 10,616 |
| Retail square feet at period end | 1,057 | 1,053 | 1,053 |
(1)Membership and other income includes membership fees and other items such as rental and tenant income, recycling income, gift card breakage income, as well as other income from corporate campus facilities.
(2)Gross profit is defined as net sales less cost of sales. Operating expenses refers to operating, selling, general and administrative expenses.
Our total revenues increased $32.2 billion or 4.7% and $32.9 billion or 5.1% for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. These increases in revenues were primarily due to increases in net sales, which increased $31.9 billion or 4.7% and $31.9 billion or 5.0% for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increases were primarily due to strong positive comparable sales across our U.S. segments and international markets. In fiscal 2026, growth was primarily driven by increases in average ticket and transactions, and also reflected growth in unit volumes, while fiscal 2025 growth was primarily driven by higher transactions and unit volumes. Both years include strength in eCommerce as well as strong sales in grocery and health and wellness, with fiscal 2026 also benefiting from improved sales in general merchandise. Net sales were negatively impacted by $2.8 billion and $3.2 billion of fluctuations in currency exchange rates during fiscal 2026 and 2025, respectively.
Membership and other income increased $0.3 billion and $1.0 billion for fiscal 2026 and 2025, respectively, primarily driven by growth in membership fee revenue globally, partially offset by decreases in certain other income items, including a reduction in recycling income in fiscal 2026.
Our gross profit rate increased 8 and 40 basis points for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increase in fiscal 2026 was primarily driven by the Walmart U.S. segment, due to disciplined inventory management, as well as growth in higher margin businesses globally. The increase in fiscal 2025 was primarily driven by the Walmart U.S. segment, due to managing prices aligned to our competitive historic price gaps, as well as growth in higher margin businesses globally. In both years, the increases were partially offset by mix shifts into lower margin merchandise categories across segments, as well as ongoing channel and format mix shifts in the Walmart International segment.
Our operating expenses as a percentage of net sales increased 20 and 36 basis points for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increase for fiscal 2026 was primarily due to higher self-insured general liability claims expense in the U.S. of approximately $0.9 billion, influenced by rising costs to resolve claims across retail and related industries, a charge of $0.7 billion related to modification of certain share-based compensation arrangements for our PhonePe subsidiary and increased depreciation related to our capital investments. The increase for fiscal 2025 was primarily due to higher variable pay as a result of exceeding planned performance, increased marketing and higher depreciation expenses.
Other gains and losses consist of certain non-operating items, such as changes in the fair value of our investments, which by their nature can fluctuate from period to period. Other gains and losses resulted in a net gain of $2.1 billion and a net loss of $0.8 billion in fiscal 2026 and 2025, respectively, primarily driven by changes in the fair value of our equity and other investments due to fluctuations in their underlying stock prices.
Our effective income tax rate was 24.4%, 23.4%, and 25.5% for fiscal 2026, 2025 and 2024, respectively. The increase in effective income tax rate in fiscal 2026 compared to fiscal 2025 is primarily due to the share-based compensation charge recorded at the Company's PhonePe subsidiary, which provided no tax benefit. The decrease in effective tax rate in fiscal 2025 compared to fiscal 2024 is primarily due to the tax impact on changes in fair value of our investments. Our effective income tax rate may also fluctuate as a result of various factors, including changes in our assessment of unrecognized tax benefits, valuation allowances, business operations, acquisitions, investments, entry into new businesses and geographies, intercompany transactions, changes in tax law, changes in the administrative practices, principles, and interpretations related to tax, and the mix and size of earnings among our U.S. operations and international operations, which are subject to statutory rates that are generally higher than the U.S. statutory rate. The reconciliation from the U.S. statutory rate to the effective income tax rates for fiscal 2026, 2025 and 2024 is provided in Note 8.
As a result of the factors discussed above, we reported $22.3 billion and $20.2 billion of consolidated net income for fiscal 2026 and 2025, respectively, which represent increases of $2.1 billion and $3.9 billion for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. Diluted net income per common share attributable to Walmart ("EPS") was $2.73, $2.41 and $1.91 for fiscal 2026, 2025 and 2024, respectively.
Walmart U.S. Segment
| Fiscal Years Ended January 31, | |||
|---|---|---|---|
| (Dollar amounts and retail square feet in millions) | 2026 | 2025 | 2024 |
| Net sales | $482,975 | $462,415 | $441,817 |
| Net sales percentage change from comparable period | 4.4% | 4.7% | 5.1% |
| Calendar comparable sales increase | 4.3% | 4.8% | 5.5% |
| Membership and other income | 2,624 | 2,594 | 1,985 |
| Gross profit | 132,615 | 125,964 | 118,254 |
| Operating expenses | 110,081 | 104,676 | 98,085 |
| Operating income | $25,158 | $23,882 | $22,154 |
| Percentage of net sales | |||
| Gross profit | 27.5% | 27.2% | 26.8% |
| Operating expenses | 22.8% | 22.6% | 22.2% |
| Operating income | 5.2% | 5.2% | 5.0% |
| Retail unit counts at period end | 4,611 | 4,605 | 4,615 |
| Retail square feet at period end | 699 | 698 | 699 |
Net sales for the Walmart U.S. segment increased $20.6 billion or 4.4% and $20.6 billion or 4.7% for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increases in net sales were primarily due to increases in comparable sales of 4.3% and 4.8% for fiscal 2026 and 2025, respectively. Comparable sales in fiscal 2026 were driven by growth in average ticket and transactions, and also reflected growth in unit volumes and strength in all merchandise categories. Comparable sales in fiscal 2025 were driven by growth in transactions and unit volumes, with strong sales in grocery and health and wellness. Walmart U.S. eCommerce sales positively contributed approximately 4.3% and 2.9% to comparable sales for fiscal 2026 and 2025, respectively. This growth reflects continued strength in customer and Walmart+ member engagement with omnichannel offerings, and was primarily driven by store-fulfilled pickup and delivery.
Membership and other income increased slightly for fiscal 2026 and increased $0.6 billion for fiscal 2025. In both years, the increases were primarily driven by double-digit growth in membership fee revenue from Walmart+. For fiscal 2026, the increase was partially offset by decreases in certain other income items, including a reduction in recycling income. Fiscal 2025 also benefited from higher recycling income compared to the previous fiscal year.
Gross profit rate increased 22 and 47 basis points for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increase for fiscal 2026 was primarily driven by disciplined inventory management and growth in higher margin businesses, partially offset by mix shifts into lower margin merchandise categories. The increase for fiscal 2025 was primarily due to managing prices aligned to our competitive historic price gaps and growth in higher margin businesses, partially offset by product mix shifts into lower margin categories.
Operating expenses as a percentage of segment net sales increased 15 and 44 basis points for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increase for fiscal 2026 was primarily due to higher self-insured general liability claims expense and increased depreciation related to our capital investments. For fiscal 2025, the increase was primarily due to increased marketing expenses, higher variable pay as a result of exceeding planned performance and increased depreciation expenses.
As a result of the factors discussed above, segment operating income increased $1.3 billion and $1.7 billion for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year.
Walmart International Segment
| Fiscal Years Ended January 31, | |||
|---|---|---|---|
| (Dollar amounts and retail square feet in millions) | 2026 | 2025 | 2024 |
| Net sales | $130,423 | $121,885 | $114,641 |
| Percentage change from comparable period | 7.0% | 6.3% | 13.5% |
| Membership and other income | 1,565 | 1,478 | 1,408 |
| Gross profit | 27,847 | 26,618 | 24,810 |
| Operating expenses | 24,309 | 22,595 | 21,309 |
| Operating income | $5,103 | $5,501 | $4,909 |
| Percentage of net sales | |||
| Gross profit | 21.4% | 21.8% | 21.6% |
| Operating expenses | 18.6% | 18.5% | 18.6% |
| Operating income | 3.9% | 4.5% | 4.3% |
| Retail unit counts at period end | 5,743 | 5,566 | 5,402 |
| Retail square feet at period end | 278 | 274 | 274 |
Net sales for the Walmart International segment increased $8.5 billion or 7.0% and $7.2 billion or 6.3% for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. Net sales growth was primarily due to positive comparable sales growth across our international markets, which includes strong eCommerce growth of $6.3 billion and $4.7 billion for fiscal 2026 and 2025, respectively. The increases were partially offset by negative fluctuations in currency exchange rates of $2.8 billion and $3.2 billion for fiscal 2026 and 2025, respectively.
Gross profit rate decreased 49 basis points for fiscal 2026 and increased 20 basis points for fiscal 2025, when compared to the previous fiscal year. For fiscal 2026, the decrease was primarily due to ongoing channel and format mix shifts, as well as strategic growth investments in price and delivery capabilities, partially offset by growth in higher margin businesses. The increase in fiscal 2025 was primarily due to improved eCommerce margin and business mix changes, partially offset by ongoing channel and format mix changes.
Operating expenses as a percentage of segment net sales increased 10 basis points for fiscal 2026 and decreased 5 basis points for fiscal 2025, when compared to the previous fiscal year. The increase for fiscal 2026 was primarily due to a charge of $0.7 billion related to PhonePe's modification of certain share-based payment arrangements in contemplation of a potential public offering (refer to Note 3), partially offset by strong sales as well as format mix shifts. The decrease for fiscal 2025 was primarily due to increased sales driving expense leverage, partially offset by planned investments in associate wages and strategic priorities in Mexico and Central America.
As a result of the factors discussed above, segment operating income decreased $0.4 billion and increased $0.6 billion for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year.
Sam's Club U.S. Segment
| Fiscal Years Ended January 31, | |||
|---|---|---|---|
| (Dollar amounts and retail square feet in millions) | 2026 | 2025 | 2024 |
| Including Fuel | |||
| Net sales | $93,015 | $90,238 | $86,179 |
| Percentage change from comparable period | 3.1% | 4.7% | 2.2% |
| Calendar comparable sales increase | 2.9% | 4.7% | 2.3% |
| Membership and other income | 2,525 | 2,323 | 2,051 |
| Gross profit | 10,556 | 10,203 | 9,431 |
| Operating expenses | 10,639 | 10,122 | 9,290 |
| Operating income | $2,442 | $2,404 | $2,192 |
| Percentage of net sales | |||
| Gross profit | 11.3% | 11.3% | 10.9% |
| Operating expenses | 11.4% | 11.2% | 10.8% |
| Operating income | 2.6% | 2.7% | 2.5% |
| Retail unit counts at period end | 601 | 600 | 599 |
| Retail square feet at period end | 81 | 80 | 80 |
| Excluding Fuel (1) | |||
| Net sales | $83,744 | $79,777 | $75,057 |
| Percentage change from comparable period | 5.0% | 6.3% | 4.7% |
| Operating income | $1,822 | $1,785 | $1,659 |
| Operating income as a percentage of net sales | 2.2% | 2.2% | 2.2% |
(1)We believe the "Excluding Fuel" information is useful to investors because it permits investors to understand the effect of the Sam's Club U.S. segment's fuel sales on its results of operations, which are impacted by the volatility of fuel prices. Volatility in fuel prices may continue to impact the operating results of the Sam's Club U.S. segment in the future.
Net sales for the Sam's Club U.S. segment increased $2.8 billion or 3.1% and $4.1 billion or 4.7% for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increases in net sales were primarily due to increases in comparable sales, including fuel, of 2.9% and 4.7% for fiscal 2026 and 2025, respectively. Comparable sales in fiscal 2026 were driven by growth in unit volumes and transactions, reflecting strong sales in grocery, health and wellness and general merchandise. Comparable sales in fiscal 2025 were driven by growth in transactions and unit volumes, with strong sales in grocery and health and wellness. Additionally, fiscal 2026 and 2025 growth was partially offset by lower fuel sales, negatively impacting comparable sales by 1.9% and 1.5%, respectively, primarily due to lower fuel prices. Sam's Club U.S. eCommerce sales positively contributed approximately 3.3% and 2.3% to comparable sales for fiscal 2026 and 2025, respectively, which reflects continued strength in member engagement with omnichannel offerings.
Membership and other income increased 8.7% and 13.3% for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. For fiscal 2026 and 2025, the increases were primarily due to growth in the membership base and Plus penetration. Fiscal 2026 was also positively impacted by additional breakage income related to unredeemed Sam's Cash rewards, while fiscal 2025 was positively impacted by the expiration of a promotional offering offsetting membership fee increases during the fourth quarter of fiscal 2024.
Gross profit rate increased 4 and 37 basis points for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increase for fiscal 2026 was primarily due to operational efficiencies and higher margins in fuel, partially offset by higher eCommerce fulfillment costs and the impact of reorganization charges related to strategic supply chain decisions. The increase for fiscal 2025 was primarily due to improved operational efficiencies related to merchandise flow and increased margins in fuel, partially offset by higher eCommerce fulfillment costs and product mix shifts into lower margin categories.
Operating expenses as a percentage of segment net sales increased 22 and 44 basis points for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increase for fiscal 2026 was primarily due to lower fuel sales and higher self-insured general liability claims expense. The increase for fiscal 2025 was primarily due to increased compensation related expenses, including associate wage investments and higher variable pay as a result of exceeding our planned performance, as well as elevated technology spend.
As a result of the factors discussed above, segment operating income increased slightly for fiscal 2026 and increased $0.2 billion for fiscal 2025, when compared to the previous fiscal year.
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