Executive Summary
Walmart Inc reported strong financial results for Q1 2025, with total revenue reaching $161.51 billion, a 5.7% increase from the prior year. This growth was driven by solid performance across all operating segments, with Walmart U.S. and International both showing double-digit improvements in sales. Adjusted operating income rose 12.9% in constant currency, reflecting effective management of inventory and pricing strategies. CEO Doug McMillon highlighted the company's commitment to offering value through rollbacks and enhanced customer experience, emphasizing that the results were not primarily inflation-driven. Overall, Walmart's focus on convenience and technology seems to be resonating well with consumers, positioning the company strongly as it navigates ongoing economic challenges.
Key Performance Indicators
QoQ: -7.10% | YoY:205.08%
QoQ: -7.35% | YoY:200.00%
Key Insights
1. Revenue: $161.51 billion, YoY growth of 5.7%
2. Net Income: $5.1 billion, reflecting an increase of 205% YoY
3. Gross Profit Margin: 24.8%, better margins led by disciplined inventory management
4. Operating Income: $6.84 billion, with an operating income ratio of 4.24%
5. EPS: $0.63, up 200% compared to the previous year
6. Cash Flow: Net cash provided by operating activities was $4.25 billion, indicating stable cash generation despite high capital expenditures of $4.68 billion
...
Financial Highlights
1. Revenue: $161.51 billion, YoY growth of 5.7%
2. Net Income: $5.1 billion, reflecting an increase of 205% YoY
3. Gross Profit Margin: 24.8%, better margins led by disciplined inventory management
4. Operating Income: $6.84 billion, with an operating income ratio of 4.24%
5. EPS: $0.63, up 200% compared to the previous year
6. Cash Flow: Net cash provided by operating activities was $4.25 billion, indicating stable cash generation despite high capital expenditures of $4.68 billion
The company's current ratio stands at 0.803, indicating a need for improvement in short-term liquidity management, while the debt-to-equity ratio sits at 0.793, reflecting moderate leverage.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
161.51B |
6.05% |
-6.85% |
| Gross Profit |
40.08B |
8.27% |
-3.58% |
| Operating Income |
6.84B |
9.63% |
-5.69% |
| Net Income |
5.10B |
205.08% |
-7.10% |
| EPS |
0.63 |
200.00% |
-7.35% |
Key Financial Ratios
operatingProfitMargin
4.24%
operatingCashFlowPerShare
$0.53
freeCashFlowPerShare
$-0.05
dividendPayoutRatio
32.7%
Management Commentary
- Pricing Leadership & Customer Experience: Doug McMillon mentioned, "We are making progress lowering prices. Our rollback count is up, and customers are responding to our price leadership."
- Sales Growth Drivers: John David Rainey emphasized, "Total net sales grew 5.7% on a constant currency basis... International led the enterprise with a constant currency sales growth of 10.7%."
- eCommerce and Marketplace Expansion: Rainey also stated, "Global e-commerce growth was 21% in Q1, and e-commerce losses continue to narrow, most notably in the U.S."
"We're providing value. Low prices on quality merchandise are always important to our customers and members." - Doug McMillon
â Doug McMillon
"Our strong results this quarter clearly demonstrate our ability to deliver on our financial framework of growing operating income faster than sales." - John David Rainey
â John David Rainey
Forward Guidance
Management has set a cautious but optimistic outlook for Q2 2025, expecting sales growth between 3.5% to 4.5% and operating income growth in the same range. The company aims to maintain profitability while continuing to invest in technology and personnel to enhance service delivery. McMillon noted, "We expect to continue to earn healthy levels of sales growth and simultaneously grow profit faster than sales this year."