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.