Walmart Inc. – 10kvi.com

Companies / Consumer Staples / Walmart Inc.

Walmart Inc. Business quality: High

NYSE: WMT · Mass retail and warehouse clubs · United States · Latest fiscal year ended 31 January 2026

Walmart is a mass retailer of groceries, general merchandise and health products, sold through 10,955 stores and clubs in 19 countries and through its websites and apps. Three segments carry it: Walmart U.S. (4,611 stores, 68.4% of net sales), Walmart International (5,743 units in 18 countries) and Sam’s Club U.S. (601 membership clubs). About 2.1 million associates work there, 1.6 million of them in the United States. John Furner became President and CEO in February 2026 and signed the filing, succeeding Doug McMillon; the three segment CEOs and the Controller are also new in their roles.

Analysis last updated 3 November 2026 · All figures come from Walmart Inc.’s Form 10-K for the fiscal year ended January 31, 2026, filed on March 13, 2026, with the fiscal 2025 Form 10-K used for comparison and the 2026 Proxy Statement used only for ownership, governance and compensation. The multiples use the closing price of US$119.14 supplied with the request and 7,972,402,501 shares outstanding at March 11, 2026; the request dates the price January 31, 2026, while the proxy gives the last trading day of the fiscal year as January 30, 2026. The price is not updated to any later date. Margin rates follow the company’s definition and are computed on net sales. Gross financial debt excludes lease obligations and the choice is declared: on that basis net debt is US$34,035 million on full cash, while the report’s 0.86 times EBITDA uses the US$6,827 million of cash the company describes as freely transferable to the United States, giving US$37,935 million. Return on invested capital is not a figure Walmart publishes in this form: it is built here as operating income after tax at each year’s effective rate over average invested capital — equity plus debt plus all lease obligations less cash. Two years of averages are two points, not a trend, so FY2024 carries no figure.

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Revenue FY26

$713.2B

+5% YoY

Revenue CAGR 2y

+4.9%

FY24 to FY26

Operating margin

4.2%

-0.1 pts

Free cash flow

$14.9B

2% of revenue

ROIC

14.5%

Our construction: operating income after tax on average invested capital (company ROI 15.1%)

Net debt

$34.0B

Total debt less cash

The business in one page

Follow one sale. Walmart sets the shelf price itself under its everyday-low-prices policy and records the ticket, net of sales taxes and expected returns, as net sales. Of each dollar, 75.79 cents goes to cost of sales — the merchandise and the cost of moving it — and 20.94 cents to operating expenses, leaving 4.22 cents of operating income. To make that sale Walmart must own or lease the store, the distribution centres and the inventory: property and equipment alone is US$136,083 million, 47.8% of total assets. On top sits a second, smaller stream: membership fees, rent, recycling and gift-card breakage, equal to 22.6% of operating income, whose cost to deliver the filing does not state.

The year added sales almost entirely through digital orders. Net sales rose 4.73% to US$706,413 million, and eCommerce supplied 92.5% of the growth — at Walmart U.S. it reached about US$99.6 billion, up 25.6%, while sales not attributed to eCommerce were flat within the company’s rounding. The gross profit rate rose for the second year, from 23.73% to 24.21%, so price leadership did not cost margin in the years presented, and membership fee revenue grew to US$4.4 billion, up 15.8%.

But operating income grew only 1.63%. The cause is named and narrow: about US$0.9 billion of higher self-insured claims in the U.S., a US$0.7 billion charge to modify share-based compensation at PhonePe, and depreciation up US$1,230 million on the investment programme. Removing the three, operating expenses grew 3.74% — slower than sales. Below operating income, a US$2,869 million swing in the fair value of equity investments carries most of the 12.64% rise in net income: pre-tax income before those marks rose 1.07%. And the capital added in the year earned 0.39%, or 9.17% with the two named charges added back, against 35.1% the year before.

Figures for 3 fiscal years, taken from the Key Metrics tables of each annual report. When a later filing restates a figure, we use the figure reported for that year's own filing.

Key metrics

Metric	FY2024	FY2025	FY2026
Revenue	$648.1B	$681.0B	$713.2B
Gross margin	23.7%	24.1%	24.2%
Operating margin	4.2%	4.4%	4.2%
Net margin (GAAP)	2.4%	2.9%	3.1%
Operating cash flow	$35.7B	$36.4B	$41.6B
Capex	$20.6B	$23.8B	$26.6B
Free cash flow	$15.1B	$12.7B	$14.9B
Dividends + buybacks	$8.92B	$11.2B	$15.6B
Net cash	-$30.6B	-$30.0B	-$34.0B
Total debt	$40.5B	$39.1B	$44.8B
Shareholders’ equity	$83.9B	$91.0B	$99.6B
Effective tax rate	25.5%	23.4%	24.4%
Our construction: operating income after tax on average invested capital (company ROI 15.1%)	–	15.5%	14.5%

How Walmart makes money

Revenue by segment

FY2026 net sales by segment, $ billions

Walmart U.S.

$483.0B

Walmart International

$130.4B

Sam's Club U.S.

$93.0B

Competitive advantage

The evidence is in the price and in the fees: the gross profit rate rose from 23.73% to 24.21% over two years while comparable sales stayed positive in both U.S. segments, so price leadership did not require a falling margin in the years presented.

Membership fee revenue grew from US$3.1 billion to US$4.4 billion over the same two years, attributed to Walmart+ and to Sam’s Club Plus penetration.

No single customer is material, and the company says less than one third of what it sells in the U.S. is imported.

The rest is the company’s own claim — that scale lets suppliers sell significant quantities in exchange for lower prices. With no research spending, member counts, renewal rates or eCommerce profitability disclosed, whether the advantage is widening or narrowing cannot be established.

Pricing power

It shows as margin held while prices lead, not as prices raised: the gross profit rate rose 7.6 basis points in fiscal 2026 on inventory discipline and higher-margin businesses, against a mix shift toward lower-margin categories.

The company does not say which categories carry the lower margins, nor what tariffs cost in the year.

At Walmart International the gross profit rate fell 49 basis points, attributed to channel and format mix shifts and to investment in price and delivery.

Transparency of growth

Growth was organic except for VIZIO, acquired in December 2024 and so present for a full year rather than part of one; its revenue contribution is not disclosed, so organic growth cannot be isolated.

Currency cost International US$2.8 billion: net sales grew 7.00% as reported and 9.30% before the effect.

eCommerce is a channel measure, not a store count: the company classifies as eCommerce every sale initiated digitally, including orders fulfilled from stores, and certain advertising, fulfilment and data services.

Scalability

Mixed this year. Revenues grew 4.73% and cost of sales 4.62%, so the merchandise margin scaled.

Operating expenses grew 5.76% and depreciation 9.48%, so the cost of serving customers did not.

Share-based compensation grew 30.12%, or 4.84% without the PhonePe charge.

Removing the three named cost items — about US$2.8 billion of an US$8,059 million increase — leaves operating expenses up 3.74%, slower than net sales. That is arithmetic, not a normalisation: self-insurance recurs and depreciation has risen every year presented.

Catalysts identified in the filing

Construction entering service
US$18,728 million of construction in progress earns nothing yet. New stores and clubs took only US$1,406 million of US$23,445 million spent in the U.S.; the rest went to supply chain, technology and remodels.
The deferred tax reversing
Deferred income taxes added US$2,277 million to operating cash flow after subtracting US$635 million a year earlier. The next cash flow statement will show when bonus depreciation stops helping.
China and international eCommerce
China added US$4,648 million of net sales, up 23.27%, and eCommerce reached 27.45% of International net sales. The filing gives no operating income by country.
Membership
Membership fee revenue grew 15.8%, with double-digit growth from Walmart+ and higher Plus penetration at Sam’s Club. Member counts and renewal rates are not disclosed.
Litigation dates
An opioid retrial and the third phase of the Asda equal-pay case fall in fiscal 2027, both without accrual or stated range.

Financial analysis

Click any line to chart it.

Income statement · $ millions	FY2024	FY2025	FY2026	Where in the filing
Net sales	642,637	674,538	706,413	IS
Membership and other income	5,488	6,447	6,750	IS
Total revenues	648,125	680,985	713,163	IS
% change year on year	–	5.1%	4.7%	computed
Cost of sales	490,142	511,753	535,395	IS
Gross profit (net sales − cost of sales, company definition)	152,495	162,785	171,018	MD&A, Results of Operations
% gross margin (on net sales, company definition)	23.7%	24.1%	24.2%	computed
Operating, selling, general and administrative expenses	130,971	139,884	147,943	IS
Operating income	27,012	29,348	29,825	IS
% operating margin (on net sales)	4.2%	4.4%	4.2%	computed
Interest: debt	2,259	2,249	2,318	IS
Interest: finance lease	424	479	481	IS
Interest income	(546)	(483)	(368)	IS
Interest, net	2,137	2,245	2,431	IS
Other (gains) and losses	3,027	794	(2,075)	IS
Income before income taxes	21,848	26,309	29,469	IS
Provision for income taxes	5,578	6,152	7,199	IS
Consolidated net income	16,270	20,157	22,270	IS
Net income attributable to noncontrolling interest	(759)	(721)	(377)	IS
Net income attributable to Walmart	15,511	19,436	21,893	IS
% net margin (on net sales)	2.4%	2.9%	3.1%	computed
Basic EPS (US$)	2	2	3	IS
Diluted EPS (US$)	2	2	3	IS
Weighted-average shares, basic (mn)	8,077	8,041	7,983	IS, Note 2
Weighted-average shares, diluted (mn)	8,108	8,081	8,022	IS, Note 2
Dividends declared per share (US$)	1	1	1	IS
Other comprehensive income (loss), net	944	(2,859)	1,009	Statement of comprehensive income

Balance sheet · $ millions	FY2024	FY2025	FY2026
Cash and cash equivalents	9,867	9,037	10,727
Receivables, net	8,796	9,975	11,172
Inventories	54,892	56,435	58,851
Prepaid expenses and other	3,322	4,011	4,124
Total current assets	76,877	79,458	84,874
Property and equipment, net	110,810	119,993	136,083
Operating lease right-of-use assets	13,673	13,599	14,750
Finance lease right-of-use assets, net	5,855	6,112	6,123
Goodwill	28,113	28,792	28,735
Other long-term assets	17,071	12,869	14,103
Total assets	252,399	260,823	284,668
Short-term borrowings	878	3,068	6,596
Accounts payable	56,812	58,666	63,061
Accrued liabilities	28,759	29,345	31,187
Accrued income taxes	307	608	596
Long-term debt due within one year	3,447	2,598	3,542
Operating lease obligations due within one year	1,487	1,499	1,631
Finance lease obligations due within one year	725	800	856
Total current liabilities	92,415	96,584	107,469
Long-term debt	36,132	33,401	34,624
Long-term operating lease obligations	12,943	12,825	13,941
Long-term finance lease obligations	5,709	5,923	5,905
Deferred income taxes and other	14,629	14,398	16,549
Redeemable noncontrolling interest	222	271	293
Common stock	805	802	797
Capital in excess of par value	4,544	5,503	6,816
Retained earnings	89,814	98,313	104,774
Accumulated other comprehensive loss	(11,302)	(13,605)	(12,770)
Total Walmart shareholders' equity	83,861	91,013	99,617
Nonredeemable noncontrolling interest	6,488	6,408	6,270
Total shareholders' equity	90,349	97,421	105,887
Common shares at year end (mn)	8,054	8,024	7,969

Cash flow statement · $ millions	FY2024	FY2025	FY2026
Consolidated net income	16,270	20,157	22,270
Depreciation and amortization	11,853	12,973	14,203
Investment (gains) and losses, net	3,193	878	(2,016)
Deferred income taxes	(175)	(635)	2,277
Other operating activities	2,642	2,889	4,079
Receivables, net	(797)	(1,106)	(1,136)
Inventories	2,017	(2,755)	(1,443)
Accounts payable	2,515	3,228	1,611
Accrued liabilities	(1,324)	379	1,607
Accrued income taxes	(468)	435	113
Net cash provided by operating activities	35,726	36,443	41,565
Payments for property and equipment	(20,606)	(23,783)	(26,642)
Proceeds from disposal of property and equipment	250	432	106
Proceeds from disposal of certain strategic investments	–	4,080	927
Payments for business acquisitions, net of cash acquired	(9)	(1,896)	(53)
Other investing activities	(922)	(212)	(688)
Net cash used in investing activities	(21,287)	(21,379)	(26,350)
Net change in short-term borrowings	512	2,212	3,523
Proceeds from issuance of long-term debt	4,967	–	3,983
Repayments of long-term debt	(4,217)	(3,468)	(2,625)
Dividends paid	(6,140)	(6,688)	(7,507)
Purchase of Company stock	(2,779)	(4,494)	(8,088)
Dividends paid to noncontrolling interest	(763)	(576)	(439)
Purchase of noncontrolling interest	(3,462)	–	–
Sale of subsidiary stock	716	362	111
Other financing activities	(2,248)	(2,170)	(2,511)
Net cash used in financing activities	(13,414)	(14,822)	(13,553)
Effect of exchange rates	69	(641)	123
Net change in cash, cash equivalents and restricted cash	1,094	(399)	1,785
Cash, equivalents and restricted cash at end of year	9,935	9,536	11,321
Income taxes paid	5,879	5,884	5,364
Interest paid	2,519	2,739	2,793

Per share · $ per diluted share	FY2024	FY2025	FY2026	Where in the filing
Revenue	79.94	84.27	88.90	computed
Net income	1.91	2.41	2.73	computed
Free cash flow	1.86	1.57	1.86	computed
Shareholders' equity	10.34	11.26	12.42	computed

Computed on the weighted average diluted share count the filing reports (8,022 million in FY2026, 8,081 in FY2025, 8,108 in FY2024), checked against the diluted earnings per share printed in the filing (US$2.73, US$2.41, US$1.91). Revenue is total revenues. Free cash flow is operating cash flow less payments for property and equipment. Equity is Walmart shareholders’ equity, excluding noncontrolling interests.

Ratios · percent	FY2024	FY2025	FY2026	Where in the filing
Returns and margins
Revenue growth	–	5.1%	4.7%	computed
Gross margin	23.7%	24.1%	24.2%	from the statements
Operating margin	4.2%	4.4%	4.2%	from the statements
Net margin	2.4%	2.9%	3.1%	from the statements
Our construction: operating income after tax on average invested capital (company ROI 15.1%)	–	15.5%	14.5%	our construction
Effective tax rate	25.5%	23.4%	24.4%	from the statements
Cash
Operating cash flow / revenue	5.5%	5.4%	5.8%	computed
Capital expenditure / revenue	3.2%	3.5%	3.7%	computed
Free cash flow / revenue	2.3%	1.9%	2.1%	computed
Dividends and buybacks / free cash flow	59.0%	88.3%	104.5%	computed
Balance sheet
Total debt / equity	48.2%	42.9%	44.9%	computed
Net cash / equity	-36.5%	-33.0%	-34.2%	computed

Every ratio is computed from the figures in the statements on the left; none is a target or a benchmark.

The three statements as the Form 10-K presents them. The margin rates are computed on net sales, not on total revenues, because that is the company’s own definition: gross profit is net sales less cost of sales, and membership and other income sits outside it. Note that part of the cost of moving goods to stores and customers is reported in operating expenses rather than in cost of sales, which the company states, so the gross margin is not comparable with other retailers’. Amounts in US$ million.

Operating measures

Two pairs govern the model, one per segment that moved the year. The filing publishes no transaction counts, no average ticket and no member numbers, so the physical half of each pair is not constructible: net sales stand in for volume, and this is declared. Operating income per dollar of net sales is our arithmetic on the two halves of Note 11. Sam’s Club U.S. moved operating income by US$38 million and Corporate and support by minus US$439 million; neither has a volume of its own to pair with.

Measure	FY2026	FY2025	Change / detail	Where in the filing
Walmart U.S.: net sales	$482,975M	$462,415M	+4.45%; 68.4% of the total	Note 11
Walmart U.S.: operating income per dollar of net sales	5.209%	5.165%	our arithmetic; operating income +5.34% against sales +4.45%	Note 11
Walmart International: net sales	$130,423M	$121,885M	+7.00%, or +9.30% before a $2.8bn currency effect	Note 11
Walmart International: operating income per dollar	3.913%	4.513%	4.449% excluding the $700M PhonePe charge	Note 11
eCommerce net sales (group)	about $150.4bn	not comparable	supplied 92.5% of the year's net sales growth	MD&A
Walmart U.S. eCommerce net sales	about $99.6bn	about $79.3bn	+25.60%; contributed about 4.3 points of 4.3% comparable growth	MD&A
Membership fee revenue	about $4.4bn	about $3.8bn	+15.8%; no member counts or renewal rates published	MD&A; Note 1
Membership and other income	$6,750M	$6,447M	+4.70%; 22.6% of operating income	IS
Sam's Club U.S.: net sales	$93,015M	$90,238M	+3.08%, or +5.0% excluding fuel; fuel sales fell 10.73%	Note 11; MD&A
Stores and clubs	10,955	not comparable	19 countries; Walmart U.S. 4,611 against 4,605	Item 2
Capital expenditure / depreciation	1.876×	1.833×	Walmart U.S. alone at 2.15×	CF; Note 11
Construction in progress	$18,728M	not comparable	earns nothing yet; no in-service dates given	Note 5
Return on investment (company measure)	15.1%	15.5%	company definition, different from ours	MD&A
Self-insurance accrual	$5,525M	not comparable	claims cost about $0.9bn more in the year	Note 10
Associates	about 2.1 million	about 2.1 million	1.6 million in the United States	Item 1

Documents behind these figures: Form 10-K for the fiscal year ended January 31, 2026 — FY2024-FY2026 · Form 10-K for the fiscal year ended January 31, 2025 — comparison of stated expectations · 2026 Proxy Statement — ownership, governance, compensation

Key risks

The main weaknesses and risks identified in the latest annual report, in the order the report presents them.

No operating leverage in the year
Operating income grew 1.63% against net sales up 4.73%, against a stated objective of operating income growing faster than sales. Operating expenses grew 5.76% and depreciation 9.48%.
The capital added earned 0.39%
Invested capital grew US$13,779 million and after-tax operating income US$54 million. With the two named charges added back the figure is 9.17%, against 35.1% the year before and a return of 14.48% on the whole base. At Walmart U.S. the extra operating income of US$1,276 million came on US$15,621 million of extra assets, about 8.2% before tax.
The cash flow is above the run rate
Operating cash flow rose 14.05% while operating income rose 1.63%; a deferred-tax swing of US$2,912 million explains more than the whole rise in free cash flow. Owner earnings were US$10,844 million against free cash flow of US$14,923 million.
Distribution above free cash flow, financed with debt
Dividends and repurchases took 104.50% of free cash flow in fiscal 2026, with US$4,881 million of net borrowing in the same year. Over three years distributions were 83.59% of free cash flow.
Most of the earnings growth was a mark, not operations
A US$2,869 million swing in the fair value of equity investments carries most of the 12.64% rise in net income; pre-tax income excluding those gains and losses rose 1.07%. The portfolio is worth US$5,675 million and a 10% move in the underlying share prices changes it by about US$0.4 billion.

Open questions the filing does not answer

What do eCommerce, advertising and marketplace earn? The filing gives no profitability for any of them, so the first decisive question cannot be answered beyond the segment total.
When does the US$18,728 million of construction in progress enter service? No dates are given, so whether the 0.39% incremental return is delay or quality cannot be settled.
How much of the tax deferral reverses in fiscal 2027? Without it the repeatability of this year’s cash flow cannot be judged.
What did tariffs cost in fiscal 2026? The amount is not given, so part of the margin movement stays unexplained.
Why did the Corporate and support loss grow US$439 million? The filing does not explain it; corporate depreciation rose from US$1,458 million to US$1,727 million.
How did the securities class actions and the FTC money-transfer suit in the fiscal 2025 note end? The fiscal 2026 filing does not say.

Value investor verdict · FY2026

Net sales grew 4.73% and operating income 1.63%, so the operating leverage the company aims for did not appear — and the capital added in the year earned 0.39%, against capital expenditure of US$26.6 billion, 1.88 times depreciation.

At US$119.14 the market capitalises Walmart at US$949.8 billion and a buyer pays 43.6 times earnings. The operating income behind those earnings grew 1.63%, and pre-tax income before investment marks grew 1.07%. Tangible equity is US$66,582 million, so book value is no support for the price.

The consolidated margin did not move as the company says it should. But the miss is traceable: Walmart U.S., which carries the claims and most of the depreciation, still grew operating income 5.34% against net sales at 4.45%. The gap sits in International — where the PhonePe charge of US$700 million more than explains the whole decline in segment operating income — and in Corporate and support, whose loss grew US$439 million with no explanation in the filing.

The capital programme has not yet shown a return, and the document cannot say whether it will: a large part is construction in progress, US$18,728 million, and nothing says when it enters service. Meanwhile fiscal 2026 cash flow sits above the run rate — a deferred-tax swing of US$2,912 million explains more than the whole rise in free cash flow, and owner earnings of US$10,844 million are a fairer base than free cash flow of US$14,923 million. Dividends and repurchases took 104.50% of free cash flow, financed with US$4,881 million of net borrowing. Walmart is a sound business in the middle of a heavy investment cycle, whose results this year show the cost of the cycle more than its return — and at this price that return is already part of what the buyer pays for.

Strengths

Price leadership has not cost margin
The gross profit rate rose from 23.73% to 24.13% to 24.21% while comparable sales stayed positive in both U.S. segments. At Walmart U.S. the rate rose 22 basis points to 27.458%, which the company attributes to inventory discipline and higher-margin businesses.
Digital supplied nearly all the growth
eCommerce reached about US$150.4 billion of net sales and supplied 92.5% of the year’s growth; at Walmart U.S. it grew 25.60% to about US$99.6 billion and contributed approximately 4.3 points of the segment’s 4.3% comparable sales growth.
A growing fee stream alongside the merchandise
Membership fee revenue rose 15.8% to US$4.4 billion, from US$3.1 billion two years earlier. Membership and other income equals 22.6% of operating income — and at Sam’s Club U.S. its US$2,525 million exceeds the segment’s entire operating income of US$2,442 million.
A balance sheet that carries the programme
Net financial debt of 0.86 times EBITDA on the cash the company describes as freely transferable, interest at 9.38% of operating income, and long-term ratings of AA and Aa2.
Capital returned, not just recycled
The share count fell 55 million net and repurchases were 2.24 times share-based compensation, so the buyback returned capital rather than offsetting dilution.

Last year’s watch-list, checked against this filing

What we flagged	What happened	Result
Operating income growing faster than net sales (stated objective)	Operating income grew 1.63% against net sales up 4.73%. Removing the three named cost items, operating expenses grew 3.74%, slower than sales.	MISSED on the reported figures
Capital expenditure of 3-3.5% of net sales	US$26,642 million, 3.77% of net sales, and 1.88 times depreciation.	ABOVE the stated range
VIZIO acquisition (December 2024)	Present for the full fiscal 2026 year; the revenue contribution is not disclosed, so organic growth cannot be isolated.	NOT VERIFIABLE - not disclosed
Securities class actions and the FTC money-transfer suit named in the fiscal 2025 note	The fiscal 2026 filing does not say how they ended.	NOT VERIFIABLE - no longer reported
Opioid retrial and the third phase of the Asda equal-pay case	Both fall in fiscal 2027, without accrual or stated range.	TO BE CHECKED NEXT YEAR

What to watch in the next filing

Walmart U.S. operating expense rate, 22.792% today, against its gross profit rate of 27.458%. Their movement answers whether the margin moves as the company says it should.
Return on investment as the company reports it, 15.1% today after 15.5%. Its direction with capital expenditure at US$25-27 billion answers whether the programme earns.
Construction in progress, US$18,728 million today. Whether it falls as projects enter service shows how much of the 0.39% incremental return is delay rather than quality.
Deferred income taxes in the cash flow statement, plus US$2,277 million today after minus US$635 million. Its sign and size show how much of fiscal 2026 cash flow repeats.
The self-insurance accrual, US$5,525 million today. Its growth against net sales shows whether claims costs keep absorbing the operating leverage.

Not investment advice. 10kvi does not publish price targets, buy/sell ratings or portfolio recommendations. This page summarises our reading of the company’s own filings.