Walmart Inc reported a solid QQ4 2025 performance characterized by resilient top-line expansion and sustained margin discipline. Revenue for the quarter stood at $180.554 billion, up 4.13% year-over-year and 6.47% quarter-over-quarter, supported by ongoing demand for essential goods and scale advantages across its multi-channel platform. Gross profit reached $44.382 billion, yielding a gross margin of 24.58%, with operating margin of 4.35% and net margin near 2.91%. Net income of $5.254 billion and an EPS of $0.65 reflect a combination of operating leverage and ongoing cost controls, even as year-over-year earnings per share declined modestly by 4.41% on a yearly basis. Importantly, Walmart generated robust cash flow, with operating cash flow of $13.525 billion and free cash flow of $6.438 billion, enabling continued capital returns to shareholders (dividends and share repurchases) while maintaining a strong liquidity profile.
From a balance-sheet perspective, Walmart carried total assets of approximately $260.8 billion and total liabilities of about $163.1 billion, leaving stockholders’ equity near $91.0 billion. Net debt stood around $51.1 billion, and total debt to capitalization was 39.8%, with an interest coverage of ~11x, underscoring a solid financial position to support ongoing investments and shareholder returns. Liquidity and working capital metrics indicate a modestly leveraged but stable operation, with a current ratio of 0.823 and a quick ratio of 0.238, reflecting Walmart’s heavy inventory and payable management characteristic of a large retail network.
With a diversified density of US and international operations and a proven track record of efficiency, Walmart remains well-positioned to navigate near-term macro uncertainty. The company’s ability to convert scale into cash flow supports an attractive downside-protected earnings profile for investors, though the stock may trade with sensitivity to competitive dynamics (notably COST.NE) and consumer spending cycles. Looking ahead, the trajectory hinges on sustaining traffic, improving margins through mix and efficiency, and maintaining disciplined capital allocation to dividends, buybacks, and strategic investments in e-commerce and store networks.
Key quarter metrics (USD, QQ4 2025):
- Revenue: $180.554B (+4.13% YoY; +6.47% QoQ)
- Gross Profit: $44.382B; Gross Margin: 24.58% (YoY +6.78%; QoQ +5.05%)
- Operating Income: $7.860B; Operating Margin: 4.35% (YoY +8.34%; QoQ +17.16%)
- Net Income: $5.254B; Net Margin: 2.91% (YoY -4.37%; QoQ +14.79%)
- EPS: $0.65; Diluted EPS: $0.65 (YoY -4.41%; QoQ +14.04%)
- Operating Cash Flow: $13.525B
- Free Cash Flow: $6.438B
- Capital Expenditures: $7.088B
- Net Debt: $51.077B; Total Debt: $60.114B
- Cash and Cash Equivalents: $9.037B; Cash at End of Period: $9.536B
- Balance Sheet Ratios: Current 0.823x; Quick 0.238x; Cash 0.0936x; Debt to Capitalization 0.398x; Debt Ratio 0.230x; Interest Coverage 10.96x
- Efficiency/Return: Asset Turnover 0.692x; ROE 5.77%; ROA 2.01%
- Valuation snapshot (approximate, USD): P/E 11.17x; P/BV 2.58x; P/S 1.30x; Dividend Yield ~0.72%; Enterprise Value Multiple ~25.85x
- Shareholder returns: Net share repurchases approximately $1.445B; Dividends paid about $1.684B; Free Cash Flow per Share $0.80; Operating Cash Flow per Share $1.681
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
180.55B
4.13%
6.47%
Gross Profit
44.38B
6.78%
5.05%
Operating Income
7.86B
8.34%
17.16%
Net Income
5.25B
-4.37%
14.79%
EPS
0.65
-4.41%
14.04%
Key Financial Ratios
currentRatio
0.82
grossProfitMargin
24.6%
operatingProfitMargin
4.35%
netProfitMargin
2.91%
returnOnAssets
2.01%
returnOnEquity
5.77%
debtEquityRatio
0.66
operatingCashFlowPerShare
$1.68
freeCashFlowPerShare
$0.8
dividendPayoutRatio
32.1%
priceToBookRatio
2.58
priceEarningsRatio
11.17
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Note: The earnings transcript for QQ4 2025 was not provided in the data set. As a result, no management quotes or transcript-specific thematic highlights could be extracted. The following highlights are based on the disclosed financials and common strategic themes for Walmart in this operating context:
- Focus on sustaining price leadership while preserving operating discipline to protect margins amid competitive discount-rates and inflationary pressure in the consumer environment.
- Capex and capital allocation emphasis on reinforcing omnichannel capabilities, supply chain efficiency, energy and logistics optimization, and store-network modernization to drive traffic and basket size over time.
- Commitment to returning capital to shareholders through dividends and buybacks, supported by robust free cash flow generation and a balance sheet designed to absorb ongoing investments and price-competitive actions.
Not available due to missing transcript data.
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Not available due to missing transcript data.
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Forward Guidance
Forward-looking analysis is constrained by the absence of explicit management guidance in the provided data. Based on the QQ4 2025 results and industry context, the following view is proposed:
- Revenue trajectory: Expect mid-single-digit annualized growth driven by core grocery and everyday essential categories, with continued solid performance from Sam’s Club and international operations contributing to overall growth.
- Margin trajectory: Gross margin around mid- to high-20s (roughly 24.5% historically in this quarter) with potential improvement as supply chain efficiencies, inventory management, and mix shifts (increase in higher-margin categories) take hold. Operating margin should remain in the low-to-mid 4% range barring material operating deleveraging or commodity price shifts.
- Cash flow and capital allocation: Maintain robust operating cash flow with free cash flow in the $6–8B range and a continued emphasis on prudent capital returns (dividends and share repurchases) while financing capex to support store and e-commerce investments.
- Key risks to monitor: competitive price pressures from COST.NE and other peers, macroeconomic softness affecting traffic in non-food categories, currency exposure in international markets, and commodity/wage inflation that could pressure margins.
- Key catalysts: ongoing efficiency programs, expansion of omnichannel fulfillment capabilities, and the success of Sam’s Club membership initiatives; any acceleration in e-commerce adoption and grocery online penetration could meaningfully support margin resilience.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
WMT.NE Focus
24.58%
4.35%
5.77%
11.17%
COST.NE
12.70%
3.82%
9.97%
42.08%
HD.NE
32.80%
11.30%
45.10%
1.51%
MA.NE
77.90%
52.60%
51.50%
15.90%
VISA.NE
81.10%
66.00%
13.60%
1.47%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Walmart remains a defensively positioned compounder in the Consumer Defensive space, underpinned by a dominant grocery footprint, scale benefits, and strong cash flow generation. The QQ4 2025 results show modest revenue expansion with stable margins and robust free cash flow (~$6.44B), supporting ongoing dividends and share repurchases and providing ample capacity for capital investments in e-commerce and supply chain modernization. Relative to peers, Walmart trades with a favorable cash-flow-driven profile, though the stock may exhibit sensitivity to competitive dynamics and consumer spending cycles. The key catalysts include sustained traffic growth, margin optimization through mix and efficiency, and successful deployment of capital toward omnichannel and store-network enhancements. Investors should monitor price-competition dynamics, inflation trajectory, and international revenue performance as primary risk variables, alongside Walmart’s ability to convert its scale into higher-margin growth streams over the medium term.
Key Investment Factors
Growth Potential
Scale advantages across US and international stores, strong grocery/consumables core, Sam’s Club membership-driven recurring revenue, and ongoing investments in e-commerce and supply chain efficiency. Potential upside from private-label and health/wellness services in appropriate markets.
Profitability Risk
Intense competition in the discount/staple segment leading to price competition; macroeconomic sensitivity affecting consumer spend; currency volatility from international exposure; evolving regulatory and labor cost pressures; supply chain disruptions and inflation risk that can impact margins and timing of cash flows.
Financial Position
Solid liquidity and cash generation with operating cash flow of $13.525B and FCF of $6.438B, ample capacity to fund dividends and buybacks, and a conservative balance sheet — total debt to capitalization of 0.398x and debt ratio of 0.230x — supporting continued capital allocation discipline.
SWOT Analysis
Strengths
Scale advantages as a leading global retailer with widespread U.S. market dominance and significant footprint in Walmart U.S., Walmart International, and Sam's Club.
Resilient demand for essential goods supports steady cash flow and pricing power in a competitive retail environment.
Robust free cash flow generation enables sustained shareholder returns and funding for capital expenditure and strategic initiatives.
Diversified channels (retail, e-commerce, membership model) provide multi-stream revenue and resilience against channel-specific headwinds.
Weaknesses
Operating margins historically lean in discount retail and sensitive to price competition and wage inflation.
High working capital intensity common to large grocery and retail networks; heavy inventory and payable management required.
International exposure introduces currency and regulatory risk; mix effects can impact margin diversification.
Opportunities
Expansion of omnichannel capabilities and online grocery penetration to lift basket size and capture larger addressable market.
Sam’s Club membership growth and potential cadence of price leadership to improve retention and add-on purchases.
Private-label expansion, healthcare/pharmacy services, and supply-chain automation to improve gross and operating margins.
Threats
Intense discount competition from COST.NE and other peers pressuring price points and margin structure.
Macro headwinds and evolving consumer behavior could dampen traffic and mix advantages.
Supply chain disruptions, labor costs, and currency fluctuations in international markets.
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