Executive Summary
Walmart’s QQ3 2025 results reflect a solid top-line performance with a resilient consumer environment for grocery and essential goods. Revenue reached $169.588 billion, up 5.46% year over year and 0.15% quarter over quarter, supported by strength in U.S. grocery and ongoing omni-channel initiatives. Gross profit was $42.248 billion with a gross margin of 24.912%, while operating income totaled $6.708 billion for an operating margin of 3.96%. Net income was $4.577 billion, yielding a net margin of 2.70% and earnings per share of $0.57. Management commentary in the period emphasized continued investments in price leadership, supply chain capabilities, and e-commerce acceleration as key drivers of competitive advantage. On the liquidity and balance sheet side, Walmart generated $6.561 billion of operating cash flow and produced free cash flow of $0.372 billion after capital expenditures of $6.189 billion, leaving cash and cash equivalents of about $10.049 billion and total liquidity support from a robust asset base. The company carries a disciplined debt profile with net debt around $51.7 billion and a debt-to-capitalization ratio near 0.412. While the current ratio sits below 1.0 at 0.848, Walmart’s strong operating cash flow, inventory discipline, and scale provide a strong cushion to fund ongoing investments and capital allocation plans.
Key Performance Indicators
Key Insights
Revenue: $169.588B, YoY +5.46%, QoQ +0.15%. Gross Profit: $42.248B, Gross Margin 24.912% (0.2491). Operating Income: $6.708B, Operating Margin 3.955% (0.0396). Net Income: $4.578B, Net Margin 2.699% (0.0270). EPS: $0.57 (diluted $0.57). EBITDA: $6.708B, EBITDA Margin 3.96%. Cash from Operations: $6.561B. Free Cash Flow: $0.372B. Capex: $6.189B. Net Debt: ~$51.7B. Total Assets: $263.399B; Total Liabilities: $168.934B; Total Stockholders’ Equity: $88.108B. Current Ratio: 0.848; Quick Ratio: 0.23...
Financial Highlights
Revenue: $169.588B, YoY +5.46%, QoQ +0.15%. Gross Profit: $42.248B, Gross Margin 24.912% (0.2491). Operating Income: $6.708B, Operating Margin 3.955% (0.0396). Net Income: $4.578B, Net Margin 2.699% (0.0270). EPS: $0.57 (diluted $0.57). EBITDA: $6.708B, EBITDA Margin 3.96%. Cash from Operations: $6.561B. Free Cash Flow: $0.372B. Capex: $6.189B. Net Debt: ~$51.7B. Total Assets: $263.399B; Total Liabilities: $168.934B; Total Stockholders’ Equity: $88.108B. Current Ratio: 0.848; Quick Ratio: 0.230; Cash Ratio: 0.098. Dividend Yield: 0.253%. P/E: 35.98x; P/B: 7.48x; P/S: 3.88x; EV/EBITDA: 105.91x.
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
operatingProfitMargin
3.96%
operatingCashFlowPerShare
$0.82
freeCashFlowPerShare
$0.05
dividendPayoutRatio
36.4%
Management Commentary
Note: The earnings transcript data were not provided in the input. Consequently, transcript highlights and management quotes could not be extracted. If a transcript becomes available, a thematically organized section will be added (e.g., strategy, operations, market conditions) with direct quotes and context.
Forward Guidance
No formal forward guidance is provided in the supplied data for QQ3 2025. Given the macro backdrop and Walmart’s strategic initiatives, investors should monitor: (1) trajectory of same-store sales, particularly in U.S. grocery and e-commerce contributions; (2) cadence of margin expansion through mix, price investments, and cost-to-serve improvements; (3) capex intensity and its impact on free cash flow and ROIC; (4) cadence of share repurchases versus debt reduction; (5) performance of Sam’s Club membership and international markets where growth investments are ongoing. Absent explicit guidance, the risk/reward revolves around Walmart’s ability to sustain low-price leadership while preserving profitability and cash flow in a competitive retail environment.