Executive Summary
Walmart’s QQ1 2026 results underscore a resilient top line in a fluctuating macro environment, with revenue of USD 165.6 billion and a YoY increase of 2.5%. The quarter delivered a solid gross margin of 24.94% (USD 41.31 billion gross profit) and an operating margin of 4.31%, but net income declined to USD 4.49 billion, down 12% year over year. The earnings per share stood at USD 0.56, reflecting a combination of revenue strength and ongoing cost/price competition pressures that moderated profitability. QoQ metrics show a notable deceleration in activity, with revenue down 8.3% sequentially and margins compressing in line with the cyclicality of a heavy promotional environment and investments in omnichannel capabilities.
From a cash-flow perspective, Walmart remains cash-flow durable. Operating cash flow was USD 5.41 billion for the quarter, with free cash flow of USD 0.425 billion after approximately USD 4.99 billion of capital expenditure. Management continued to deploy capital toward buybacks (net common stock repurchased of USD 4.56 billion) and dividends (USD 1.88 billion) while preserving liquidity (cash and cash equivalents of USD 9.31 billion at period end; net debt around USD 57.9 billion). The balance sheet remains sturdy, with total assets of USD 262.4 billion and a long-term debt load that is manageable within Walmart’s operating scale. The company’s performance signals a deliberate balance between market-penetrating investments (e-commerce, supply chain, store footprint) and capital discipline aimed at sustaining cash generation for shareholder returns. Investors should monitor the pace of margin recovery as promotional intensity normalizes, ongoing investments in omnichannel and supply-chain efficiency, and any evolving capital allocation priorities.
Key Performance Indicators
QoQ: -14.60% | YoY:-12.09%
QoQ: -13.85% | YoY:-11.11%
Key Insights
Revenue: USD 165.609 billion in QQ1 2026, YoY +2.54%, QoQ -8.28%
Gross Profit: USD 41.306 billion in QQ1 2026, YoY +3.07%, QoQ -6.93%
Gross Margin: 24.94% in QQ1 2026
Operating Income: USD 7.135 billion in QQ1 2026, YoY +4.30%, QoQ -9.21%
Operating Margin: 4.31% in QQ1 2026
Net Income: USD 4.487 billion in QQ1 2026, YoY -12.09%, QoQ -14.60%
Net Margin: 2.71% in QQ1 2026
EPS (diluted): USD 0.56 in QQ1 2026, YoY -11.11%, QoQ -13.85%
EBITDA: USD 10.00 billion; EBITDA Margin: ~6.04%
Cash Flow: Net c...
Financial Highlights
Revenue: USD 165.609 billion in QQ1 2026, YoY +2.54%, QoQ -8.28%
Gross Profit: USD 41.306 billion in QQ1 2026, YoY +3.07%, QoQ -6.93%
Gross Margin: 24.94% in QQ1 2026
Operating Income: USD 7.135 billion in QQ1 2026, YoY +4.30%, QoQ -9.21%
Operating Margin: 4.31% in QQ1 2026
Net Income: USD 4.487 billion in QQ1 2026, YoY -12.09%, QoQ -14.60%
Net Margin: 2.71% in QQ1 2026
EPS (diluted): USD 0.56 in QQ1 2026, YoY -11.11%, QoQ -13.85%
EBITDA: USD 10.00 billion; EBITDA Margin: ~6.04%
Cash Flow: Net cash provided by operating activities USD 5.41 billion; Free cash flow USD 0.425 billion
Capex: USD 4.986 billion in QQ1 2026
Cash and Equivalents: USD 9.311 billion (cash at end of period USD 9.932 billion)
Total Assets: USD 262.372 billion; Total Liabilities: USD 171.724 billion; Total Stockholders’ Equity: USD 83.793 billion
Long-term Debt: USD 55.195 billion; Short-term Debt: USD 12.01 billion; Net Debt: USD 57.894 billion
Share Buybacks: USD -4.556 billion; Dividends: USD -1.88 billion
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
No explicit forward guidance was included in the supplied data. Based on the QQ1 2026 results, the following considerations are relevant for forward-looking assessment:
- Revenue trajectory suggests ongoing strength in core groceries and omnichannel demand, but QoQ softness points to seasonal dynamics and promotional intensity.
- Margin trajectory will hinge on cost mix, input costs, and pricing discipline amidst competitive pressure. The 24.9% gross margin aligns with Walmart’s low-cost leadership but could compress if input costs rise or if promotions intensify.
- Capex and investments in e-commerce, supply chain optimization, and store modernization are likely to weigh on near-term margin but are critical for long-run competitiveness and cost-to-serve improvements.
- Key risk factors include macro consumer spending weakness, currency volatility (WMT.DE listing implies exposure to USD/EUR dynamics), supply-chain disruption, and aggressive price competition from peers.
- Monitoring points for investors: consumer spending trends in major markets, evolution of promotional activity and grocery deflation/deflationary pressure, inventory levels and days-of-supply, and the pace of share repurchases versus capital expenditures.