Walmart Inc. recently released its 10-Q report for the fiscal year ending January 31, 2026, showcasing the company's financial performance and operational strategies. Let's delve into the specific details provided by the report.
Growth and Comparable Sales: Walmart U.S. saw a 4.7% and 3.9% increase in comparable sales for the three and six months ended July 31, 2025, respectively, driven by growth in average ticket and transactions across all merchandise categories. eCommerce net sales positively contributed approximately 4.0% and 3.7% to Walmart U.S.'s comparable sales for the same periods, reflecting continued strength in customer and Walmart+ member engagement with omnichannel offerings.
- Sam's Club U.S. witnessed a 3.3% and 3.1% increase in comparable sales for the three and six months ended July 31, 2025, respectively, driven by growth in unit volumes with strength in transactions, particularly in grocery, health and wellness, and general merchandise.
Margin: * Gross profit as a percentage of net sales ("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 same periods, reflecting charges related to certain legal matters and higher self-insured general liability claims expense in the U.S.
Returns: * Return on Assets (ROA) was 8.3% and 6.4% for the trailing 12 months ended July 31, 2025, and 2024, respectively, primarily due to an increase in net income combined with higher operating income, offset by an increase in average total assets due to higher purchases of property and equipment.
- Return on Investment (ROI) remained flat at 15.1% for the trailing 12 months ended July 31, 2025, and 2024, as a result of increased operating income offset by an increase in average invested capital due to higher purchases of property and equipment.
Capital Allocation and Free Cash Flow: The company allocated a total of $11.4 billion in capital expenditures for the six months ended July 31, 2025, with a focus on supply chain, customer-facing initiatives, technology, store and club remodels, and new stores and clubs. Walmart's free cash flow, defined as net cash provided by operating activities minus payments for property and equipment, was $18.4 billion for the six months ended July 31, 2025, compared to $16.4 billion for the same period in 2024.
These figures and metrics outlined in Walmart's 10-Q report provide a detailed snapshot of the company's financial performance and strategic focus as it navigates through the dynamic retail landscape. As a result of these announcements, the company's shares have moved 0.91% on the market, and are now trading at a price of $96.98. Check out the company's full 10-Q submission here.
