Executive Summary
Walmart’s QQ1 2026 results show modest top-line growth alongside ongoing margin pressures, a common trait across large-scale omni-channel retailers navigating cost inflation and aggressive promotional environments. Revenue reached 165.609 billion USD, up 2.54% year over year but down 8.28% quarter over quarter, signaling seasonality and mix dynamics as price investments and promotions continue to influence quarterly performance. Gross profits stood at 41.306 billion USD with a gross margin of approximately 24.94%, while operating income was 7.135 billion USD (operating margin ~4.31%). Net income amounted to 4.487 billion USD, translating to a net margin near 2.71% and EPS of 0.56 USD. The quarter delivered solid cash flow through operating activities of 5.411 billion USD and free cash flow of 0.425 billion USD, supporting a disciplined capital return framework despite a sizable balance sheet with total debt of 67.21 billion USD and net debt of 57.89 billion USD.
Key Performance Indicators
QoQ: -14.60% | YoY:-12.09%
QoQ: -13.85% | YoY:-11.11%
Key Insights
Revenue: 165.609B (YoY +2.54%, QoQ -8.28%). Gross Profit: 41.306B (+YoY +3.07%, QoQ -6.93%), Gross Margin: 24.94%. Operating Income: 7.135B (+YoY +4.30%, QoQ -9.21%), Operating Margin: 4.31%. Net Income: 4.487B (-YoY -12.09%, QoQ -14.60%), Net Margin: 2.71%. EPS: 0.56 (YoY -11.11%, QoQ -13.85%). EBITDA: 10.0B (EBITDA Margin ~6.04%). EBITDARatio: 0.0603831917. Weighted Avg Shares: 8.011B (Diluted 8.051B). Free Cash Flow: 0.425B; Cash from Operations: 5.411B. Balance sheet highlights: Cash and cas...
Financial Highlights
Revenue: 165.609B (YoY +2.54%, QoQ -8.28%). Gross Profit: 41.306B (+YoY +3.07%, QoQ -6.93%), Gross Margin: 24.94%. Operating Income: 7.135B (+YoY +4.30%, QoQ -9.21%), Operating Margin: 4.31%. Net Income: 4.487B (-YoY -12.09%, QoQ -14.60%), Net Margin: 2.71%. EPS: 0.56 (YoY -11.11%, QoQ -13.85%). EBITDA: 10.0B (EBITDA Margin ~6.04%). EBITDARatio: 0.0603831917. Weighted Avg Shares: 8.011B (Diluted 8.051B). Free Cash Flow: 0.425B; Cash from Operations: 5.411B. Balance sheet highlights: Cash and cash equivalents 9.312B; Total Assets 262.372B; Total Liabilities 171.724B; Total Equity 83.793B. Debt: Total 67.205B; Net Debt: 57.894B. Key liquidity indicators show a robust cash position with ongoing capacity for capital returns and investment in growth initiatives.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
165.61B |
2.54% |
-8.28% |
| Gross Profit |
41.31B |
3.07% |
-6.93% |
| Operating Income |
7.14B |
4.30% |
-9.21% |
| Net Income |
4.49B |
-12.09% |
-14.60% |
| EPS |
0.56 |
-11.11% |
-13.85% |
Management Commentary
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Forward Guidance
Explicit forward-looking targets or guidance are not included in the provided dataset. Based on the QQ1 2026 results and prevailing industry dynamics, a cautious baseline suggests Walmart will continue investing in omnichannel capabilities, price leadership, supply chain efficiency, and membership economics (Sam’s Club) while prioritizing cost discipline to support margin stabilization. Investors should monitor: (1) trajectory of gross and operating margins amid competitive pricing and input costs; (2) online grocery and fulfillment scalability; (3) international growth cadence and currency exposure; (4) free cash flow generation and capital allocation (share repurchases vs. dividends vs. reinvestment). If management provides quantitative guidance in subsequent quarters, we will update the view accordingly.