Executive Summary
Walmart’s QQ2 2026 results underscore a resilient and scalable retail platform generating meaningful cash flow even as the operating environment remains highly competitive. Total revenue stood at $177.402 billion, up 4.76% year over year and 7.12% quarter over quarter, supported by sustained demand across core categories and favorable mix. Gross profit reached $44.631 billion, delivering a gross margin of 25.16%, while operating income totaled $7.287 billion for a 4.11% operating margin. Net income was $7.026 billion, translating to a net margin of 3.96% and EPS of $0.88, up approximately 57% year over year and quarter over quarter. EBITDA stood at $13.575 billion (EBITDA margin 7.65%), highlighting meaningful operating leverage at scale.
Cash flow remained robust, with operating cash flow of $12.941 billion and free cash flow of $7.956 billion. Cash at period end was $9.877 billion, while total debt stood at $65.014 billion and net debt at $55.583 billion, yielding a healthy interest coverage profile of roughly 9.5x. Walmart also returned capital to shareholders through $1.645 billion in share repurchases and $1.875 billion in dividends, reinforcing the company’s disciplined capital allocation framework. The quarterly metrics point to a business with strong scale, cost discipline, and ongoing ability to translate volume into earnings growth, though near-term liquidity metrics warrant monitoring given a current ratio below 1.0.
Looking ahead, Walmart’s cash generation and balance-sheet strength position it well to fund ongoing investments in e-commerce and supply chain efficiency, while pursuing price leadership and assortment expansion. Investors should monitor key drivers such as comp sales, online/mobile penetration, gross margin trajectory, and working capital dynamics, as well as competitive and macro headwinds that could influence margin progression and cash deployment decisions.
Key Performance Indicators
Key Insights
Revenue performance: Revenue $177.402B in QQ2 2026, YoY +4.76%, QoQ +7.12%.
Gross Profit and Margin: Gross profit $44.631B, gross margin 25.16% (YoY +4.95%, QoQ +8.05%).
Operating Income and Margin: Operating income $7.286B, operating margin 4.11% (YoY -8.24%, QoQ +2.12%).
Net Income and EPS: Net income $7.026B, net margin 3.96%, EPS $0.88 (YoY +56.10%, QoQ +56.59%; Diluted EPS also $0.88).
EBITDA and Margins: EBITDA $13.575B, EBITDA margin 7.65%.
Cash Flow and Capex: Net cash provided by operat...
Financial Highlights
Revenue performance: Revenue $177.402B in QQ2 2026, YoY +4.76%, QoQ +7.12%.
Gross Profit and Margin: Gross profit $44.631B, gross margin 25.16% (YoY +4.95%, QoQ +8.05%).
Operating Income and Margin: Operating income $7.286B, operating margin 4.11% (YoY -8.24%, QoQ +2.12%).
Net Income and EPS: Net income $7.026B, net margin 3.96%, EPS $0.88 (YoY +56.10%, QoQ +56.59%; Diluted EPS also $0.88).
EBITDA and Margins: EBITDA $13.575B, EBITDA margin 7.65%.
Cash Flow and Capex: Net cash provided by operating activities $12.941B; capital expenditures $4.987B; free cash flow $7.956B.
Balance sheet health: Total assets $270.837B; total liabilities $173.980B; total stockholders’ equity $90.110B. Cash and cash equivalents $9.431B; cash flow from operations supports healthy deleveraging capacity.
Liquidity and leverage: Current liabilities $103.566B vs current assets $82.033B (current ratio ~0.79). Total debt $65.014B; net debt $55.583B; interest expense $0.769B; interest coverage ~9.5x.
Shareholder returns: Dividends paid $1.875B; shares repurchased $1.645B; net cash flow from financing activities $(7.001)B.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
177.40B |
4.76% |
7.12% |
| Gross Profit |
44.63B |
4.95% |
8.05% |
| Operating Income |
7.29B |
-8.24% |
2.12% |
| Net Income |
7.03B |
56.10% |
56.59% |
| EPS |
0.88 |
57.14% |
57.14% |
Management Commentary
No earnings-call transcripts or management quotes were provided in the input data. A qualitative takeaway based on the quarter’s results suggests a focus on scale-driven operating leverage, cash flow generation, and continued investments in digital/e-commerce initiatives and supply chain efficiency. Specific management quotes are not available in this dataset.
Forward Guidance
No explicit forward guidance was included in the supplied data. Based on the results, the plausible trajectory for Walmart centers on continued revenue growth from core supermarkets and clubs, ongoing cost and SG&A discipline to protect margins, and sustained capital investment in e-commerce, private label initiatives, and supply-chain optimization. Key factors investors should monitor include: (1) comp sales trajectory and online penetration growth; (2) gross and operating margin progression amid competitive pricing dynamics; (3) working capital efficiency given inventory levels; (4) cash flow conversion and capital allocation (dividends, buybacks, and deleveraging) in a volatile macro backdrop.