Walmart’s QQ3 2025 results show a solid top-line trajectory with revenue of $169.59 billion, marking a year-over-year growth of 5.46% and a modest sequential uptick of 0.15%. The quarter delivered a gross margin of approximately 24.9% and an operating margin near 4.0%, reflecting ongoing scale advantages, cost-control measures, and mix benefits, albeit with margin headwinds linked to labor, logistics, and promotions typical of a discount retailer. Net income and earnings per share exhibits a pronounced year-over-year uplift (net income up ~910% YoY and EPS up ~916%), driven by base effects and favorable non-operating items, alongside continued cash generation despite elevated capital expenditure. Cash flow from operations stood at roughly $6.56 billion, while capital expenditures totaled about $6.19 billion, yielding free cash flow of approximately $372 million. Balance sheet liquidity in this snapshot shows a conservative cash position (~$10.17 billion) with total liabilities of ~$168.9 billion against ~$88.1 billion in equity, and a current ratio below 1 (0.85x) signaling working-capital dynamics typical for a high-volume retailer with capex-intensive activities. The company maintains a modest dividend yield (~0.81%) and a debt program that supports ongoing share repurchases and growth initiatives.
Key Performance Indicators
Revenue
Increasing
169.59B
QoQ: 0.15% | YoY: 5.46%
Gross Profit
Increasing
42.25B
24.91% margin
QoQ: -0.65% | YoY: 6.63%
Operating Income
Increasing
6.71B
QoQ: -15.52% | YoY: 8.16%
Net Income
Increasing
4.58B
QoQ: 1.69% | YoY: 910.38%
EPS
Increasing
0.57
QoQ: 1.79% | YoY: 916.04%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability
- Revenue: $169.588 billion in QQ3 2025, YoY growth +5.46%, QoQ +0.15%.
- Gross Profit: $42.248 billion; Gross margin ~24.91% (grossProfitMargin = 0.2491).
- Operating Income: $6.708 billion; Operating margin ~3.96% (operatingIncomeRatio = 0.0396).
- Net Income: $4.578 billion; Net margin ~2.70% (netIncomeRatio = 0.0270).
- EPS: $0.57; Diluted EPS $0.57; YoY EPS growth ~+916% and QoQ +~1.8%.
Cash flow and balance sheet
- Operating cash flow: $6.561 billion.
- Capital expenditures: $6.189 billion.
- Free cash flow: $372 million.
- Cash and equivalents: ~$10.17 billion at period end; total debt: ~$61.75 billion; net debt: ~$51.70 billion.
- Total assets: ~$263.40 billion; total liabilities: ~$168.93 billion; total stockholders’ equity: ~$88.11 billion.
- Liquidity metrics: current ratio 0.85x; quick ratio 0.23x; cash ratio 0.098x, signaling working-capital and liquidity considerations in a high-volume, capex-intensive phase.
Valuation and cash flow efficiency
- Price/Earnings: ~11.25x; Price/Book ~2.34x; Dividend yield ~0.81%.
- Enterprise value multiple: ~25.82x; Price to operating cash flow ~31.38x; Price to free cash flow appears elevated in the supplied data, suggesting sensitivity to reported free cash flow or potential data inconsistencies in widely varying metrics.
- Free cash flow yield and related efficiency metrics should be interpreted with caution given the substantial capital spending backdrop in QQ3 2025.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
169.59B
5.46%
0.15%
Gross Profit
42.25B
6.63%
-0.65%
Operating Income
6.71B
8.16%
-15.52%
Net Income
4.58B
910.38%
1.69%
EPS
0.57
916.04%
1.79%
Key Financial Ratios
Gross Profit Margin
Fair
24.90%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Weak
3.96%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
2.70%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
1.74%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
5.19%
Return on equity is acceptable but below top-tier companies
Current Ratio
Concern
0.85
Current ratio below safe levels, potential liquidity risk
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