Walmart Inc. ("Walmart") has recently released its 10-Q for the fiscal year ending January 31, 2026, providing insights into the company's financial condition and operational performance. Here are the key details from the report:
Growth Metrics: Comparable sales in the U.S., including fuel, increased by 4.4% and 3.8% for the three and six months ended July 31, 2025, respectively, compared to the same periods in the previous fiscal year. Walmart U.S. segment witnessed comparable sales growth of 4.7% and 3.9% for the three and six months ended July 31, 2025, driven by growth in average ticket and transactions, reflecting strength in all merchandise categories. Walmart U.S. segment's eCommerce net sales positively contributed approximately 4.0% and 3.7% to comparable sales for the three and six months ended July 31, 2025, driven by store-fulfilled pickup and delivery. Sam's Club U.S. segment's comparable sales increased by 3.3% and 3.1% for the three and six months ended July 31, 2025, driven by growth in unit volumes with strength in transactions, particularly in grocery, health and wellness, and general merchandise.
Margin Focus: Gross profit rate increased by 4 and 8 basis points for the three and six months ended July 31, 2025, respectively, primarily due to disciplined inventory management and growth in higher margin businesses in the Walmart U.S. segment. Operating expenses as a percentage of net sales increased by 64 and 35 basis points for the three and six months ended July 31, 2025, respectively, influenced by certain legal matters and higher self-insured general liability claims expense in the U.S.
Returns and Capital Allocation: Return on Assets (ROA) was 8.3% for the trailing 12 months ended July 31, 2025, reflecting an increase compared to the previous year. Return on Investment (ROI) remained flat at 15.1% for the trailing 12 months ended July 31, 2025, primarily due to increased operating income offset by higher purchases of property and equipment. * The company allocated capital to areas such as supply chain, customer-facing initiatives, technology, store and club remodels, and new stores and clubs, with total capital expenditures amounting to $11.409 billion for the six months ended July 31, 2025.
Free Cash Flow: * Walmart defines free cash flow as net cash provided by operating activities minus payments for property and equipment. For the six months ended July 31, 2025, the company reported net cash provided by operating activities of $18.352 billion.
The 10-Q provides a comprehensive overview of Walmart's financial and operational performance, highlighting its growth strategies, margin focus, returns, and capital allocation. These metrics offer valuable insights into the company's position in the retail industry and its ongoing efforts to drive growth and profitability. The market has reacted to these announcements by moving the company's shares 0.91% to a price of $96.98. For the full picture, make sure to review Walmart's 10-Q report.
