10-K 0000104169-26-000055 (2026-03-13) vs 10-K 0000104169-25-000021 (2025-03-14)
| Section | Compared text | Words now | Changed |
|---|
| Risk Factors | Item 1A | 13,527 |
22.1% |
| MD&A | Item 7 | 8,517 |
21.8% |
| Legal Proceedings | Item 3 | 848 |
30.0% |
| Accounting Policies | Item 8, Note 1 – Summary of Significant Accounting Policies | 4,581 |
9.7% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
Legal Proceedings 281 words changed in this paragraph; it is 33% similar to last year's version.
Opioid-Related Litigation: In re National Prescription Opiate Litigation (MDL No. 2804) (the "MDL") is pending in the U.S. District Court for the Northern District of Ohio and includes approximately 250 230 cases with claims against the Company as of March 10, 2025. 6, 2026. In addition, there are more than 25 the following 13 other opioid-related cases against the Company and its subsidiaries were pending in U.S. state and federal courts and Canadian courts as of March 10, 2025. The non-MDL case citations are listed on Exhibit 99.1 to this Annual Report on Form 10-K. 6, 2026: Baby Doe 1, et al. v. Allergan Finances, LLC, et al., U.S. Dist. Ct., E.D. Tenn., 4/29/25; Marshall Cty. Bd. of Educ., et al. v. Cephalon, Inc., et al., U.S. Dist. Ct., N.D. W. Va., 10/28/24; Reiner v. CVS Pharm., Inc., et al., Nev. 5th Jud. Dist. Ct., Nye Cty., 2/26/24; Chaney v. CVS Pharm., Inc., et al., Ky. Cir. Ct., Perry Cty., 12/11/23; City of Grande Prairie, et al. v. Apotex Inc., et al., Alta. King's Bench Ct., Calgary Jud. Ctr., 4/27/23; Lac La Ronge Indian Band, et al. v. Apotex Inc., et al., Sask. King's Bench Ct., Prince Albert Jud. Ctr., 3/17/23; Commonwealth of Pennsylvania ex rel. Allegheny Cty. Dist. Att'y Stephen A. Zappala, Jr. v. CVS Ind., LLC, et al., Pa. Ct. Com. Pl., Delaware Cty., 8/8/22; Baby Doe, et al., ex rel. Their Guardian Ad Litem v. Endo Health Sols., Inc., et al., U.S. Dist. Ct., M.D. Tenn., 8/3/22; Paynter ex rel. Minor Child(ren) Z.N.B. v. McKesson Corp., et al., W. Va. Cir. Ct., Kanawha Cty., 3/28/22; Blankenship ex rel. Minor Child Z.D.B. v. McKesson Corp., et al., W. Va. Cir. Ct., Kanawha Cty., 1/14/22; Miss. Baptist Med. Ctr. Inc., et al. v. Amneal Pharm., LLC, et al., Miss. 1st Jud. Dist., Hinds Cty. Cir. Ct., 5/15/20; Dallas Cty. Hosp. Dist. d/b/a Parkland Health & Hosp. Sys., et al., v. Amneal Pharm., LLC, et al., Tex. Dist. Ct., 152nd Jud. Dist., Harris Cty., 11/20/19; Fla. Health Scis. Ctr., Inc., et al. v. Sackler, et al., Fla. Cir. Ct., 17th Jud. Cir., Broward Cty., 9/16/19.
Source: Item 3, 10-K 0000104169-26-000055 vs Item 3, 10-K 0000104169-25-000021
Risk Factors 253 words changed in this paragraph; it is 67% similar to last year's version.
Data privacy and protection laws or customer expectations relating to the collection, use, retention, disclosure, transfer and processing of personal information continue to undergo a rapid transformation in the U.S. and non-U.S. jurisdictions. State laws, such as the California Consumer Privacy Act ("CCPA"), in a number of states that have become effective, or will soon be effective, have created a substantially more complex regulatory regime associated with data-handling practices. Moreover, other laws and regulations related to data-handling and privacy that apply to our business, such as the Illinois Biometric Information Privacy Act, the European Union's General Data Protection Regulation ("GDPR"), the United Kingdom's General Data Protection Regulation (which implements the GDPR into U.K. law), China's Personal Information Protection Act ("PIPL"), and similar legislation in Quebec, Canada further increase the compliance obligations of our business. Certain of these laws have required us to modify our data processing practices and policies and to incur substantial costs and expenses to comply, which we anticipate will continue in the future. These and other privacy and cybersecurity laws may carry significant potential damages and civil penalties for noncompliance. For example, in the case of noncompliance with a material provision of the GDPR (such as non-adherence to the core principles of processing personal data), regulators have the authority to levy a fine in an amount that is up to the greater of €20 million or 4% of global annual turnover (i.e., revenue) in the prior year. These administrative fines are discretionary and based, in each case, on a multi-factored approach. Further, PIPL took effect in China in November 2021. PIPL raises the requirements for processing personal information and requires our China business to undergo a cybersecurity assessment and obtain approval from the Cyberspace Administration of China ("CAC") as well as consent from the personal information owner before personal information collected in China may be transferred to, or accessed from, outside of China. Walmart We obtained CAC approval in September 2023. Fines for PIPL violations range from approximately RMB 50 million 2023 and are required to up to 5% of the infringing company's previous year's revenues generated from within China. reapply by August 2026. We have made changes, and we may in the future make additional adjustments to our business practices, to comply with the personal information protection laws and regulations in China as they evolve. Residents in jurisdictions with comprehensive privacy laws generally have rights to access, correct and require deletion of their personal information, opt out of certain personal information sharing and selling, receive detailed information about how their personal information is used and may have a private right of action for data breaches. Furthermore, our marketing and customer engagement activities are subject to communications privacy laws such as the Telephone Consumer Protection Act. We may be subject to penalties and other consequences for noncompliance, including being required to change some portions of our business. Even an unsuccessful challenge by customer or regulatory authorities of our activities could result in adverse publicity, impact our reputation and could require a costly response from and defense by us.
Source: Item 1A, 10-K 0000104169-26-000055 vs Item 1A, 10-K 0000104169-25-000021
MD&A 248 words changed in this paragraph; it is 40% similar to last year's version.
We define free cash flow as net cash provided by operating activities in a period minus payments for property and equipment made in that period. We had net cash provided by operating activities of $36.4 billion, $35.7 billion and $28.8 billion for fiscal 2025, 2024 and 2023, respectively. We generated free cash flow of $12.7 billion, $15.1 billion and $12.0 billion for fiscal 2025, 2024 and 2023, respectively. The increase in net cash provided by operating activities in fiscal 2026 is primarily due to an increase in cash provided by operating income, lower cash tax payments and the timing of certain payments. Free cash flow for fiscal 2026 increased when compared to fiscal 2025 is due to an increase in cash provided by operating income, lower cash tax payments and timing of certain payments, partially offset by an increase of $2.9 billion in capital expenditures to support our omnichannel growth strategy. Net cash provided by operating activities for fiscal 2025 increased when compared to fiscal 2024 primarily due to an increase in cash provided by operating income and lapping the payment of accrued opioid legal charges in the prior year, partially offset by increased inventory purchases. Free cash flow for fiscal 2025 decreased when compared to fiscal 2024 due to an increase of $3.2 billion in capital expenditures to support our investment omnichannel growth strategy, partially offset by the increase in net cash provided by operating activities described above. Net cash provided by operating activities for fiscal 2024 increased when compared to fiscal 2023 primarily due to higher cash provided by operating income, as well as timing of certain payments and strategic inventory management as part of working capital initiatives, partially offset by payment of the remaining accrued opioid legal charges. Free cash flow for fiscal 2024 increased when compared to fiscal 2023 due to the increase in net cash provided by operating activities described above, partially offset by an increase of $3.7 billion in capital expenditures to support our investment strategy.
Source: Item 7, 10-K 0000104169-26-000055 vs Item 7, 10-K 0000104169-25-000021
Accounting Policies 142 words changed in this paragraph; it is 37% similar to last year's version.
Noncontrolling interests that are The Company has a redeemable outside noncontrolling interest in a subsidiary within the Company's control Walmart U.S. segment. The minority interest owner holds a put option which, if exercised, would require the Company to purchase the underlying shares at fixed or determinable prices and dates are presented as temporary equity fair value beginning in the Consolidated Balance Sheets. December 2027, with annual options thereafter. Redeemable noncontrolling interests are initially recorded at the greater of the redemption fair value or the carrying value of the noncontrolling interest and adjusted each reporting period for income, loss and any distributions made. made, and are then generally remeasured to the greater of the redemption value or the carrying value of the noncontrolling interest. Remeasurements to the redemption value of the redeemable noncontrolling interest are recognized in capital in excess of par. The Company has a redeemable noncontrolling interest related to an acquisition in the Walmart U.S. segment as the minority interest owner holds a put option which may require the Company to purchase its interest beginning in December 2027, with annual options thereafter.
Source: Item 8, Note 1 – Summary of Significant Accounting Policies, 10-K 0000104169-26-000055 vs Item 8, Note 1 – Summary of Significant Accounting Policies, 10-K 0000104169-25-000021
Every change, by type
Sentences and paragraphs of WMT's Risk Factors and MD&A, 10-K 2026-03-13 against 10-K 2025-03-14.
Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
Further, the protection of our proprietary rights, including our trademarks, copyrights, domain names, patents and trade secrets, is important to our business. Effective protection of our proprietary rights may not be available in every jurisdiction in which we offer our products and services, and we may not be able to prevent or deter third parties from infringing or misappropriating our intellectual property, or ensure that third parties will not independently develop equivalent or superior intellectual property rights, which could affect our ability to maintain a competitive advantage and adversely impact our business.
Read it in 10-K 2026-03-13 at sec.gov ↗
AddedRisk Factors
The occurrence of these events could result in immediate and longer-term impacts on our operations, including physical damage or loss of properties, the closure of stores, clubs and distribution or fulfillment centers, limited operating hours, workforce shortages and challenges in labor availability, the inability of customers and associates to reach or have transportation to our
Read it in 10-K 2026-03-13 at sec.gov ↗
AddedRisk Factors
Claims for insurance-related liabilities, such as workers' compensation, general liability, auto liability, product liability and certain employee-related healthcare benefits, are funded predominantly through self-insurance. Insurance coverage is maintained for certain risks to limit exposures arising from significant losses. The types and amounts of insurance may vary from time to time based on our risk-management strategy, risk tolerance, regulatory requirements, market conditions and other factors. Significant claims or events, regulatory changes, a substantial rise in costs of health care or costs to maintain our insurance or the failure to maintain adequate insurance coverage could have an adverse impact on our financial condition and results of operations. Although we maintain specific coverages for catastrophic property losses, we still bear a significant portion of the risk of losses incurred as a result of any physical damage to, or the destruction of, any stores, warehouses, depots, manufacturing or home office facilities, loss or spoilage of inventory, and business interruption. Such losses could materially impact our cash flows and results of operations.
Read it in 10-K 2026-03-13 at sec.gov ↗
RemovedRisk Factors
stores, increases in the costs of procuring products as a result of either reduced availability or economic sanctions, increased transportation costs (whether due to fuel prices, fuel supply or otherwise), the disruption (whether directly or indirectly) of critical infrastructure systems, banking systems, utility services or energy availability to our stores, clubs and our facilities and the disruption in our communications with our stores, clubs and our other facilities.
Read it in 10-K 2025-03-14 at sec.gov ↗
RemovedRisk Factors
Furthermore, the long-term impacts of climate change, whether involving physical risks (such as extreme weather conditions, drought or rising sea levels) or transition risks (such as regulatory or technology changes) may be widespread and are unpredictable. Certain impacts of physical risk may include: temperature changes that increase the heating and cooling costs at stores, clubs and distribution or fulfillment centers; extreme weather patterns that affect the production or sourcing of certain commodities; flooding and extreme storms that damage or destroy our buildings and inventory; disruption of electrical grids or utilities required to operate our stores, clubs and information systems; and heat and extreme weather events that cause long-term disruption or threats to the habitability of the communities in which we operate. Relative to transition risk, certain impacts may include: changes in energy and commodity prices driven by climate-related weather events; prolonged climate-related events affecting macroeconomic conditions with related effects on consumer spending and confidence; stakeholder perception of our engagement in climate-related policies; and new regulatory requirements resulting in higher compliance risk and operational costs.
Read it in 10-K 2025-03-14 at sec.gov ↗
RemovedRisk Factors
We have been responding to subpoenas, information requests and investigations from governmental entities related to nationwide controlled substance dispensing and distribution practices involving opioids. We are a defendant in numerous litigation proceedings related to opioids, including the multidistrict litigation entitled In re National Prescription Opiate Litigation (MDL No. 2804) currently pending in the U.S. District Court for the Northern District of Ohio, cases pending in various state and federal courts, and a lawsuit filed against us by the U.S. Department of Justice in the District of Delaware in 2020. We cannot predict the ultimate number of opioids-related claims that may be filed or their outcomes and cannot reasonably estimate any loss or range of loss that may arise from opioids-related matters.
Read it in 10-K 2025-03-14 at sec.gov ↗
RemovedRisk Factors
In addition, we have been responding to subpoenas, information requests and investigations from governmental entities regarding the independent contractor classification of drivers and payment and operational practices with respect to our driver platform, as well as defending putative class and representative action civil litigation relating to driver classification and defending other civil litigation and arbitration claims in connection with the driver platform. On December 23, 2024, the Consumer Financial Protection Bureau ("CFPB") filed a lawsuit against the Company and Branch Messenger, Inc. in the District of Minnesota alleging the Company violated the Consumer Financial Protection Act by allegedly requiring independent contractor drivers on the Spark platform to receive payments through a financial product offered by Branch. The CFPB seeks an injunction and unspecified restitution, damages and civil penalties. On February 20, 2025, the Court entered an order that indefinitely stays the case and vacates all deadlines. We cannot predict the outcome of the investigations by the governmental entities or the civil litigation and arbitration matters. We cannot provide any assurance as to the scope and outcome of these matters and no assurance that our business, financial position, results of operations or cash flows will not be materially adversely affected.
Read it in 10-K 2025-03-14 at sec.gov ↗
RemovedRisk Factors
In July 2021, the Directorate of Enforcement in India issued a show cause notice to Flipkart Private Limited and one of its subsidiaries ("Flipkart"), and to unrelated companies and individuals, including certain current and former shareholders and directors of Flipkart. The notice requests the recipients to show cause as to why further proceedings under India's Foreign Direct Investment rules and regulations (the "Rules") should not be initiated against them based on alleged violations during the period from 2009 to 2015, prior to our acquisition of a majority stake in Flipkart in 2018 (the "Notice"), in addition to more recent requests for information from the Directorate of Enforcement to Flipkart for periods prior and subsequent to April 2016 regarding the Rules, including the most recent request in February 2025 (the "Requests"). The Notice is an initial stage of proceedings under the Rules which could, depending upon the conclusions at the end of the initial stage, lead to a hearing to consider the merits of the allegations described in the Notice. If a hearing is initiated, whether with respect to the Notice or from further proceedings related to the Requests, and if it is determined that violations of the Rules occurred, then the regulatory authority has the authority to impose monetary and/or non-monetary relief, such as share ownership restrictions. We are unable to predict whether the Notice will lead to a hearing on the merits or, if it does, the final outcome of the resulting proceedings, as well as whether any further proceedings will arise with respect to the Requests. We cannot reasonably estimate any loss or range of loss that may arise from these matters and can provide no assurance as to the scope or outcome of any proceeding that might result from the Notice or the Requests and further can provide no assurance that its business, financial position, results of operations or cash flows will not be materially adversely affected.
Read it in 10-K 2025-03-14 at sec.gov ↗
RemovedRisk Factors
On January 13, 2020, the Competition Commission of India ("CCI") ordered its Director General (the "DG") to investigate certain matters alleging competition law violations by certain subsidiaries of Flipkart in India and other parties. On September 13, 2024, those subsidiaries received a non-confidential version of the DG's Investigation Report (the "Report"), alleging certain competition law violations. CCI is not bound by the Report, and will conduct its independent analysis of the allegations, including hearing objections from the subsidiaries and other parties before issuing its final order in the matter, which could include monetary and non-monetary relief. CCI's final order would also be subject to appropriate appellate proceedings. We can provide no assurance as to the scope and outcome of this matter, cannot reasonably estimate any loss or range of loss that may arise, and can provide no assurance that its business, financial position, results of operations or cash flows will not be materially adversely affected.
Read it in 10-K 2025-03-14 at sec.gov ↗
RemovedRisk Factors
Also, in October 2023, the main Mexican operating subsidiary of Wal-Mart de México, S.A.B. de C.V. ("Walmex") was notified of the initiation of a quasi-judicial administrative process against it for alleged relative monopolistic practices in connection with the supply and wholesale distribution of certain consumer goods and retail marketing practices of such consumer goods and related services. On December 12, 2024, the Comisión Federal de Competencia Económica of México ("COFECE") issued a split decision that Walmex's subsidiary had engaged in a single relative monopolistic practice in relation to the negotiation of two types of contributions with its suppliers. The resolution imposed a monetary penalty on Walmex's subsidiary and certain non-structural conduct measures. Walmex and its business operations may continue to be closely
Read it in 10-K 2025-03-14 at sec.gov ↗
RemovedRisk Factors
monitored and subject to heightened scrutiny from regulatory authorities on these matters leading to possible negative publicity, additional litigation proceedings and reputational harm, all of which could have a material adverse effect on our business operations, financial position and results of operations.
Read it in 10-K 2025-03-14 at sec.gov ↗
RewordedRisk Factors
Political These risks include political and economic instability, as well as other impactful events and circumstances (such as we previously experienced (and could experience again) with the pandemic recovery related challenges, including supply chain disruption and production, labor shortages and increases in labor costs) in the countries and regions in which our suppliers and their manufacturers are located or regions located, goods are transported from or through, manufactured and located, and through which goods are transported; the financial instability of suppliers, suppliers; suppliers not having the financial ability or capacity to fulfill their indemnification obligations to us if called upon, thereby exposing us to the full cost of risks and claims, claims; suppliers' failure to meet our terms and conditions or our supplier standards (including our responsible sourcing standards), standards); labor problems experienced by our suppliers and their manufacturers, manufacturers; the availability of raw materials to suppliers, suppliers; extreme weather events impacting the growing, manufacturing, mining and harvesting of commodities and products, products; merchandise safety and quality issues, issues; disruption or delay in the transportation of merchandise from the suppliers and manufacturers to our stores, clubs and other facilities, including as a result of extreme weather or labor slowdowns and/or strikes at any port at which a material amount of merchandise we purchase enters into the markets in which we operate, slowdowns; currency exchange rates, rates; transport availability and cost, cost; transport security, inflation security; and other factors relating to the suppliers and the countries in which they are located are beyond our control. inflation.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedRisk Factors
Moreover, geopolitical tensions or events; and catastrophic and other events, events such as war, war; civil unrest (including theft, looting or vandalism), vandalism); terrorist attacks or other attacks; acts of violence, including active shooter situations (such as those that have occurred in our U.S. stores), stores); or the loss of merchandise as a result of shrink or theft similar disruptions in countries in which we operate, or regions in which our suppliers are located operate or regions through which goods are transported from or through, or in other areas of the world (such as in Ukraine and Israel, armed hostilities in the Red Sea and surrounding areas through which ocean carrier vessels travel to the Suez Canal and delays that have occurred traversing the Panama Canal resulting from drought) could materially adversely affect our operations and financial performance.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedRisk Factors
Our strategy, which includes investments in eCommerce, technology, including the use of artificial intelligence ("AI") and generative AI technologies (which continues to grow and evolve within our Company), AI, talent, supply chain automation and enhancements, advertising, acquisitions, joint ventures, new store and club openings and remodels and other customer initiatives initiatives, may not adequately or effectively allow us to continue to grow our eCommerce business, omnichannel business offerings, increase comparable sales, sales or maintain or grow our overall market position or otherwise offset the impact on the growth of our business of a moderated pace of new store and club openings and sustain the current pace of remodels. position.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedRisk Factors
A pandemic, epidemic or contagious disease outbreak that affects humans or the food supply, such as the avian flu impact on poultry and egg production could impact our business operations, demand for our products and services, in-stock positions, costs of doing business, access to inventory, supply chain operations, the extent and duration of measures to try to contain the spread of a virus or other disease (such as travel bans and restrictions, quarantines, shelter-in-place orders, limitations on large gatherings, business and government shutdowns and other restrictions on retailers), our ability to predict future performance, exposure to litigation and our financial performance, among other things.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedRisk Factors
Negative incidents, including the loss of merchandise as a result of shrink or theft, ineffective use or misuse of AI technologies technologies, inaccurate, biased or a data breach as a result of a cyberattack could quickly erode trust and confidence in our business and could result in consumer boycotts, workforce unrest and government investigations. otherwise flawed
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedRisk Factors
The economic factors that affect our operations may also adversely affect the operations of our suppliers, which can result in an increase in the cost to us of the goods we sell to our customers or, in more extreme cases, in certain suppliers not producing goods in the volume typically available to us for sale, or adversely impact product margins due to higher labor and material costs of our suppliers that we are unable, or choose not, to pass on to our customers.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedRisk Factors
Our information systems are subject to damage or interruption from power outages, computer and telecommunications failures, computer viruses, ransomware, worms, other malicious computer programs, denial-of-service attacks, security incidents and breaches from a variety of threat actors, including both cybercriminals and nation state-sponsored actors, actors and catastrophic events such as wildfires, major or extended winter storms, tornadoes, earthquakes and hurricanes, utility outages, usage errors by our associates or contractors and civil or political unrest or armed hostilities. noted above in this Item 1A.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedRisk Factors
The VIZIO Order remains in effect Holding Corp. and its subsidiaries (collectively "VIZIO") are subject to a stipulated order with the Federal Trade Commission and the New Jersey Attorney General until 2037 and that requires VIZIO to comply with specified obligations related to its VIZIO's collection and use of certain consumer data and information collected from a VIZIO internet-connected device.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedRisk Factors
Governmental and societal attention to ESG social and environmental matters, including expanding mandatory and voluntary reporting diligence, and disclosure topics such as climate change, sustainability (including with respect to our supply chain), natural resources, waste reduction, energy, human capital and risk oversight could change the nature, scope and complexity of matters that we are required to control, assess and report.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedRisk Factors
The impact of these potential new rules developments, as well as any other changes in domestic and international tax rules laws and regulations could have a material effect on our cash taxes, affect our effective tax rate. rate and increase our compliance, audit and controversy costs, any of which could materially adversely affect our financial performance.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedRisk Factors
We are unable to predict the outcome of the litigation or investigations or cannot provide any other related actions by governmental entities regarding these matters and can provide no assurance as to the scope and outcome of these matters and whether no assurance that our business, financial position, results of operations or cash flows will not be materially adversely affected.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedRisk Factors
Our ownership of VIZIO and these compliance obligations are new, and if If we fail to adequately design or implement controls for these matters, comply with the terms of the order, we may face additional regulatory action, penalties or monetary fines, any of which could have a substantial negative impact on our business, operations and financial performance.
Read it in 10-K 2026-03-13 at sec.gov ↗
AddedMD&A
In July 2025, the One Big Beautiful Bill Act (the "OBBB Act") was enacted, introducing a series of corporate tax changes in the U.S., including 100% bonus depreciation on qualified property and full expensing for research and development expenditures. The impacts of the OBBB Act were not material to our income tax expense or effective tax rate. Certain provisions decreased cash taxes paid in fiscal 2026 and may change the timing of cash tax payments in future periods.
Read it in 10-K 2026-03-13 at sec.gov ↗
AddedMD&A
For a detailed discussion on results of operations by reportable segment, refer to "Results of Operations" below.
Read it in 10-K 2026-03-13 at sec.gov ↗
AddedMD&A
During fiscal 2026, the Company repurchased $8.1 billion in shares of its common stock, an increase of $3.6 billion as compared to the same period in the previous fiscal year. The increase was primarily driven by opportunistic prices during the first quarter of fiscal 2026 as part of the Company's long-term strategy.
Read it in 10-K 2026-03-13 at sec.gov ↗
RemovedMD&A
We have taken certain strategic actions across our segments, including an increased emphasis on investments in automation and supply chain as well as diversifying our earnings streams through category and business mix. In December 2024, the Walmart U.S. segment completed the acquisition of VIZIO Holding Corp. for net cash consideration of $1.9 billion. Additionally, we have taken actions in the Walmart International segment to reshape our portfolio including the following highlights over the last three years:
Read it in 10-K 2025-03-14 at sec.gov ↗
RemovedMD&A
•In November 2022, we completed the buyout of the noncontrolling interest shareholders of our Massmart subsidiary (Refer to Note 3) and in December 2022, we exited operations in certain countries in Africa.
Read it in 10-K 2025-03-14 at sec.gov ↗
RemovedMD&A
•In December 2022, we increased our ownership in PhonePe as part of the separation from our majority-owned Flipkart subsidiary. Refer to Note 3.
Read it in 10-K 2025-03-14 at sec.gov ↗
RemovedMD&A
•In August 2024, we sold our equity investment in JD.com for net proceeds of $3.6 billion. Refer to Note 8.
Read it in 10-K 2025-03-14 at sec.gov ↗
RemovedMD&A
We operate in a highly competitive omni-channel retail industry in all of the markets we serve. We face strong sales competition from other discount, department, drug, dollar, variety and specialty stores, warehouse clubs and supermarkets, as well as eCommerce, health and wellness, financial services, advertising and data service businesses. Many of these competitors are national, regional or international chains or have a national or international omni-channel or eCommerce presence. We compete with a number of companies for attracting and retaining quality associates. We, along with other retail companies, are influenced by a number of factors including, but not limited to: catastrophic events, weather and other risks related to climate change, global health epidemics and pandemics, competitive pressures, consumer disposable income, consumer debt levels and buying patterns, consumer credit availability, disruptions in supply chain, inventory management, cost and availability of goods, currency exchange rate fluctuations, customer preferences, inflation, deflation, fuel and energy prices, general economic
Read it in 10-K 2025-03-14 at sec.gov ↗
RemovedMD&A
conditions, insurance costs, interest rates, labor availability and costs, tax rates, the imposition of tariffs, cybersecurity attacks and unemployment. Further information on the factors that can affect our operating results and on certain risks to our Company and an investment in its securities can be found herein under "Item 1A. Risk Factors."
Read it in 10-K 2025-03-14 at sec.gov ↗
RemovedMD&A
During fiscal 2023, we completed a $0.4 billion buyout of the noncontrolling interest shareholders of our Massmart subsidiary and completed a $0.4 billion acquisition of Alert Innovation, bringing our ownership to approximately 100% of both Massmart and Alert Innovation. The Alert Innovation entity was subsequently sold and deconsolidated in fiscal 2025.
Read it in 10-K 2025-03-14 at sec.gov ↗
RewordedMD&A
Fiscal Years Ended January 31, (Dollar amounts and retail square feet in millions) 2026 2025 2024 2023 Including Fuel Net sales $ 93,015 $ 90,238 $ 86,179 $ 84,345 Percentage change from comparable period 3.1 % 4.7 % 2.2 % 14.7 % Calendar comparable sales increase 2.9 % 4.7 % 2.3 % 14.6 % Membership and other income $ 2,525 2,323 $ 2,051 $ 1,908 Gross profit 10,556 10,203 9,431 8,761 Operating expenses 10,639 10,122 9,290 8,705 Operating income $ 2,442 $ 2,404 $ 2,192 1,964 Percentage of net sales Gross profit 11.3 % 11.3 % 10.9 % 10.4 % Operating expenses 11.4 % 11.2 % 10.8 % 10.3 % Operating income 2.6 % 2.7 % 2.5 % 2.3 % Unit Retail unit counts at period end 601 600 599 600 Retail square feet at period end 80 81 80 80 Excluding Fuel (1) Net sales $ 83,744 $ 79,777 $ 75,057 $ 71,665 Percentage change from comparable period 5.0 % 6.3 % 4.7 % 10.5 % Operating income $ 1,822 $ 1,785 $ 1,659 $ 1,352 Operating income as a percentage of net sales 2.2 % 2.2 % 1.9 2.2 %
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedMD&A
Fiscal Years Ended January 31, (Dollar amounts and retail square feet in millions) 2026 2025 2024 2023 Net sales $ 482,975 $ 462,415 $ 441,817 $ 420,553 Net sales percentage change from comparable period 4.4 % 4.7 % 5.1 % 6.9 % Calendar comparable sales increase 4.3 % 4.8 % 5.5 % 7.0 % Membership and other income $ 2,624 2,594 $ 1,985 $ 1,845 Gross profit 132,615 125,964 118,254 111,748 Operating expenses 110,081 104,676 98,085 92,973 Operating income $ 25,158 $ 23,882 $ 22,154 20,620 Percentage of net sales Gross profit 27.5 % 27.2 % 26.8 % 26.6 % Operating expenses 22.8 % 22.6 % 22.2 % 22.1 % Operating income 5.2 % 5.2 % 5.0 % 4.9 % Unit Retail unit counts at period end 4,611 4,605 4,615 4,717 Retail square feet at period end 699 698 699 702
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedMD&A
Walmart International SegmentFiscal Years Ended January 31, (Dollar amounts and retail square feet in millions) 2026 2025 2024 2023 Net sales $ 130,423 $ 121,885 $ 114,641 $ 100,983 Percentage change from comparable period 7.0 % 6.3 % 13.5 % — % Membership and other income $ 1,565 1,478 $ 1,408 $ 1,621 Gross profit 27,847 26,618 24,810 21,651 Operating expenses 24,309 22,595 21,309 20,307 Operating income $ 5,103 $ 5,501 $ 4,909 2,965 Percentage of net sales Gross profit 21.4 % 21.8 % 21.6 % 21.4 % Operating expenses 18.6 % 18.5 % 18.6 % 20.1 % Operating income 3.9 % 4.5 % 4.3 % 2.9 % Unit Retail unit counts at period end 5,743 5,566 5,402 5,306 Retail square feet at period end 278 274 274 273
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedMD&A
The increase in ROA was primarily due to an increase in consolidated net income during the trailing 12 month period, as a result of higher operating income and changes net increases in the fair value of our equity and other investments. investments combined with higher operating income, offset by an increase in average total assets due to higher purchases of property and equipment.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedMD&A
For The increase for fiscal 2025, the increase in gross profit rate 2026 was primarily due to improved operational efficiencies related to merchandise flow and increased higher margins in fuel, partially offset by higher eCommerce fulfillment costs. costs and the impact of reorganization charges related to strategic supply chain decisions.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedMD&A
Membership and other income increased $0.6 $0.3 billion and $0.1 $1.0 billion for fiscal 2025 2026 and fiscal 2024, 2025, respectively, primarily driven by growth in membership fee revenue globally, partially offset by decreases in certain other income from Walmart+ and items, including a reduction in recycling income. income in fiscal 2026.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedMD&A
The increases were increase in fiscal 2026 was primarily driven by the Walmart U.S. segment, due to managing prices aligned to our competitive historic price gaps, disciplined inventory management, as well as growth in higher margin businesses globally, partially offset by mix shifts into lower margin merchandise categories. globally.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedMD&A
The increases were increase in fiscal 2026 was primarily driven by the Walmart U.S. segment, due to managing prices aligned to our competitive historic price gaps, disciplined inventory management, as well as growth in higher margin businesses globally, partially offset by mix shifts into lower margin merchandise categories. globally.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedMD&A
Other gains and losses consisted resulted in a net gain of $2.1 billion and a net losses loss of $0.8 billion and $3.0 billion in fiscal 2025 2026 and 2024, 2025, respectively, which primarily consisted of driven by changes in the fair value of our equity and other investments driven by changes due to fluctuations in their underlying stock prices.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedMD&A
Management also measures the results of comparable store and club sales, or comparable sales, Comparable sales is a metric that indicates the performance of our existing stores and clubs by measuring the change in sales for such stores and clubs, including eCommerce sales, for a particular period from over the corresponding prior year period. period in the previous year.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedMD&A
However, when we discuss Our discussion of our comparable sales below, we are referring below refers to our calendar comparable sales calculated using our fiscal calendar, which may result in differences when compared to comparable sales using the retail calendar. calendar (also known as the 4-5-4 calendar) as provided in our quarterly earnings releases.
Read it in 10-K 2026-03-13 at sec.gov ↗
RewordedMD&A
The increase in net cash provided by operating activities in fiscal 2025 2026 is primarily due to an increase in cash provided by operating income income, lower cash tax payments and lapping the payment timing of accrued opioid legal charges in the prior year, partially offset by increased inventory purchases. certain payments.
Read it in 10-K 2026-03-13 at sec.gov ↗
