Executive Summary
Walmart Inc delivered solid top-line growth in QQ4 2025, supported by continued strength in grocery and resilient discretionary demand. Revenue reached USD 180.554 billion, up 4.13% year over year and 6.47% quarter over quarter, accompanied by a durable gross margin of 24.58% and an operating margin of 4.35%. Net income declined 4.37% year over year to USD 5.254 billion, reflecting a modestly higher tax burden and mix effects, but benefited from a robust QoQ rebound of 14.8% in net income and a 14.04% QoQ increase in diluted EPS to USD 0.65. Cash flow generation remained strong with operating cash flow of USD 13.525 billion and free cash flow of USD 6.438 billion, underscoring Walmart’s ability to fund dividends, buybacks, and ongoing investments in e-commerce and new membership initiatives. The balance sheet remains large and liquid, with total assets of USD 260.823 billion and net debt of USD 51.077 billion, supported by an 10.96x interest coverage ratio and solid cash generation. While valuation remains elevated versus some peers, Walmart’s scale, price leadership, and capital allocation discipline position it to navigate a competitive landscape and drive long-term shareholder value.
Key Performance Indicators
Key Insights
Revenue: USD 180.554B; YoY growth +4.13%; QoQ growth +6.47%. Gross Profit: USD 44.382B; Gross Margin 24.58%; YoY Gross Margin +6.78%; QoQ +5.05%. Operating Income: USD 7.859B; Operating Margin 4.35%; YoY +8.34%; QoQ +17.16%. Net Income: USD 5.254B; Net Margin 2.91%; YoY -4.37%; QoQ +14.79%. EPS: USD 0.65; YoY -4.41%; QoQ +14.04%. Operating Cash Flow: USD 13.525B; Capex: USD 7.087B; Free Cash Flow: USD 6.438B. Balance Sheet highlights: Total Assets USD 260.823B; Total Liabilities USD 163.131B; To...
Financial Highlights
Revenue: USD 180.554B; YoY growth +4.13%; QoQ growth +6.47%. Gross Profit: USD 44.382B; Gross Margin 24.58%; YoY Gross Margin +6.78%; QoQ +5.05%. Operating Income: USD 7.859B; Operating Margin 4.35%; YoY +8.34%; QoQ +17.16%. Net Income: USD 5.254B; Net Margin 2.91%; YoY -4.37%; QoQ +14.79%. EPS: USD 0.65; YoY -4.41%; QoQ +14.04%. Operating Cash Flow: USD 13.525B; Capex: USD 7.087B; Free Cash Flow: USD 6.438B. Balance Sheet highlights: Total Assets USD 260.823B; Total Liabilities USD 163.131B; Total Equity USD 91.013B. Cash and equivalents: USD 9.536B; Net Debt: USD 51.077B; Total Debt: USD 60.114B. Valuation indicators (USD): P/E ~ 37.5x; P/B ~ 8.66x; P/S ~ 4.36x; Dividend Yield ~ 0.21%. Liquidity ratios: Current 0.823x; Quick 0.238x; Cash 0.0936x. Operational efficiency: DSO 4.97 days; DIO 37.30 days; Inventory Turnover 2.41x; Receivables Turnover 18.10x. Earnings metrics reflect a resilient business with margin stability despite ongoing macro headwinds and competitive pressure.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
180.55B |
4.13% |
6.47% |
| Gross Profit |
44.38B |
6.78% |
5.05% |
| Operating Income |
7.86B |
8.34% |
17.16% |
| Net Income |
5.25B |
-4.37% |
14.79% |
| EPS |
0.65 |
-4.41% |
14.04% |
Key Financial Ratios
operatingProfitMargin
4.35%
operatingCashFlowPerShare
$1.69
freeCashFlowPerShare
$0.8
dividendPayoutRatio
32.1%
Management Commentary
Note: The earnings transcript was not provided in the data set. As a result, management quotes and transcript-based insights could not be pulled. Expected themes in a Walmart QQ4 call typically include: (1) reinforcing the grocery-led growth engine, (2) progress on e-commerce expansion and omnichannel initiatives, including Walmart+ member engagement and delivery/pickup acceleration, (3) ongoing cost discipline and capital allocation (dividends, buybacks, and strategic investments in technology and supply chain), (4) macro headwinds and currency considerations impacting international performance, and (5) guidance or targets for the coming year. Without the transcript, the following sections rely on reported figures and historical context.
Transcript not provided; management quotes from the QQ4 2025 call are not available in the supplied data.
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Transcript not provided; management quotes from the QQ4 2025 call are not available in the supplied data.
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Forward Guidance
No explicit forward-looking targets or formal guidance were provided in the supplied materials. Based on the QQ4 2025 results and prevailing industry dynamics, the plausible outlook hinges on: (i) continued resilience in core grocery and everyday essentials driving steady same-store sales and cash flow generation, (ii) a measured expansion of e-commerce penetration and Walmart+ membership contributing to a higher mix of online orders and margin upgrade over time, (iii) ongoing price leadership to defend market share in a highly competitive discount environment, while managing inflationary and supply chain costs, (iv) international profitability driven by store-network optimization and currency effects, and (v) capital allocation that prioritizes free cash flow maintenance, modest buybacks, and selective investments in automation and technology. Investors should monitor: same-store sales growth (SSSG), e-commerce growth rate, operating margin progression, inventory management, cash conversion cycle, working capital development, and capex intensity relative to free cash flow. In a scenario with continued discretionary softness, margin discipline and supply chain efficiency will be critical to sustain earnings momentum.