strength across Our team delivered
Walmart reports second quarter results •Revenue growth of 5.9%, up 5.1% in constant currency (cc)1 •Operating income growth of 28.8%, up 17.4% adjusted (cc)1 •eCommerce sales up 23% globally •GAAP EPS of $0.80; Adjusted EPS1of $0.81 •Company issues guidance for Q3; raises outlook for FY27 “ BENTONVILLE, Ark., August 20, 2026– Walmart Inc. (NASDAQ: WMT) announces second-quarter results with strong growth in revenue, including eCommerce, which grew 23% globally with strength across Our team delivered segments. Walmart U.S. another good quarter, comp sales2grew 2.6%, and we continue to make led by growth in steady progress on the transactions and long-term value drivers includes 80 bps of our business. Our headwind from health & multi-year growth in wellness. The Company eCommerce is evidence issues guidance for the that customers are third quarter and choosing Walmart raises its outlook for because we deliver the fiscal year. For price, speed, and Q3, net sales are convenience across a expected to grow 3.0% broad assortment. At to 3.75% and adjusted Walmart, they can have operating income to it all.” grow 2.0% to 4.0%. Net John Furner sales for FY27 are President and CEO, expected to grow 4.0% Walmart to 5.0% and adjusted operating income to grow 7.0% to 8.5%, all in constant currency (“cc”)1. Adjusted EPS1is expected to be $0.62 to $0.64 for Q3 and $2.80 to $2.87 for FY27. Second Quarter Highlights •Revenue of $187.9 billion, up 5.9%, or 5.1% (cc)1 •Global eCommerce sales grew 23%, led by store-fulfilled pickup & delivery and marketplace •Global advertising business3up 38%, with strength across segments. Walmart U.S. advertising up 38% •Membership fee revenue grew 17% globally •Gross profit rate up 96 bps, led by Walmart U.S., primarily impacted by tariff refund impacts noted below •Operating income up $2.1 billion, or 28.8%; up 17.4% adjusted (cc)1; which includes the impact of tariff refunds received, partially offset by price investments in the quarter. Setting aside this net impact, underlying operating income growth was at the top end of our guidance. Our outlook reflects the continued prioritization of remaining tariff refunds into price investments •Adjusted EPS1of $0.81 excludes the impact, net of tax, from a net loss of $0.12 on equity and other investments, and net benefit of $0.11 from a certain tax matter •ROA at 8.0%; ROI at 15.4%1 •Global inventory up 6.7%; up 6.0% (cc)4, due to strategic initiatives and inflation 1See additional information at the end of this release regarding non-GAAP financial measures. 2Comp sales for the 13-week period ended July 31, 2026 compared to the 13-week period ended August 1, 2025 and excludes fuel. See Supplemental Financial Information for additional information. 3Our global advertising business is recorded in either net sales or as a reduction to cost of sales, depending on the nature of the advertising arrangement. 4Inventory grew 6.7% on a reported basis and grew 6.0% in constant currency, excluding a ~$0.4 billion foreign currency impact. “cc” - constant currency
Key Financial Metrics Dollars in billions, except per share data. Dollar and percentage changes may not recalculate due to rounding. Charts may not be to scale.
Balance Sheet and Liquidity •Cash and cash equivalents of $11.5 billion •Total debt of $57.2 billion2 •Operating cash flow of $19.7 billion, an increase of $1.4 billion •Free cash flow1of $5.5 billion, a decrease of $1.4 billion •Repurchased 42.3 million shares YTD, or $5.1 billion3 •Inventory of $61.6 billion, an increase of $3.9 billion, or 6.7%, up 6.0% cc4 1See additional information at the end of this release regarding non-GAAP financial measures. 2Debt includes short-term borrowings, long-term debt and finance lease obligations due within one year, and long-term debt and finance lease obligations. 3$25.1 billion remaining of the $30 billion authorization approved in February 2026. 4Inventory grew 6.7% on a reported basis and grew 6.0% in constant currency, excluding a ~$0.4 billion foreign currency impact. cc - constant currency
Business Highlights and Strategic Initiatives Dollars in billions, except as noted. Dollar and percentage changes may not recalculate due to rounding.
Walmart U.S. Q2 FY27 Q2 FY26 Change Net sales $125.2 $120.9 $4.3 3.5% Comp sales (ex. fuel)2 2.6% 4.6% NP NP Transactions 1.5% 1.5% NP NP Average ticket 1.1% 3.1% NP NP eCommerce contribution to comp ~510 bps ~420 bps NP NP Operating income $8.1 $6.7 $1.4 20.6%
• Sales reflected continued strong momentum in eCommerce and broad-based share gains, partially offset by 125 bps headwind to comp sales from pharmacy deflation related to new maximum fair price regulation (effective Jan 1)
• eCommerce sales increased 24%, with strength in store-fulfilled delivery, advertising, and marketplace
• Strong advertising growth continued, up 38% overall, including 43% increase in Walmart Connect (ex-VIZIO)
• Gross profit grew 158 bps due to the benefit associated with tariff refunds and improved business mix; partially offset by price investments and higher fuel costs
• Membership fee revenue grew double-digits as Walmart+ net adds reflected a record second quarter high
• Operating expense deleveraged 72 bps due to higher claims expense, depreciation, and associate healthcare costs
• Operating income up 20.6%, reflects higher gross profit, as noted above, and improved eCommerce economics
• Growth in net sales (cc) 1 across markets, with momentum in eCommerce and stores
◦ Transaction counts and unit volumes up, contributing to growth across all categories
• eCommerce sales up 19%, led by store-fulfilled pickup & delivery, with digital mix up across markets
• Operating income growth (cc) 1 benefited by lower losses in eCommerce and business mix changes
• Currency rate fluctuations positively affected sales by $1.5 billion and operating income by $0.1 billion
1 See additional information at the end of this release regarding non-GAAP financial measures.
3 Our global advertising business is recorded in either net sales or as a reduction to cost of sales, depending on the nature of the advertising arrangement.
• Comp sales driven by increased transactions and total unit volumes with strength in grocery and general merchandise
• eCommerce sales up 26% with continued strong growth in club-fulfilled pickup & delivery
• Membership fee revenue grew 6% driven by steady growth in member counts and Plus penetration
• Operating income growth reflects the benefit associated with tariff refunds and membership growth
• Inventory up 8.0%, primarily related to higher fuel costs and volumes, including fuel upstreaming with a strategic partner
2 See additional information at the end of this release regarding non-GAAP financial measures.
The following guidance reflects the Company’s expectations as of August20, 2026.This guidanceis subject to substantial risk and uncertainty that could cause actual results to differ materially from these expectations. These risks and uncertainties include, but are not limited to, the factors set forth below under the heading Forward-looking statements. Additionally, guidance is provided on a non-GAAP basis as the Company cannot predict certain elements that are included in reported GAAP results, such as the changes in fair value of the Company’s equity and other investments. Growth rates reflect an adjusted basis for prior year results. “Our business model is only getting stronger and more durable, and we’re pleased to raise our guidance for the year. For Q3 sales guidance, we expect a headwind of over 100bps to growth related to a timing shift of Flipkart’s Big Billion Days between Q3 and Q4. Our operating income outlook reflects the continued prioritization of tariff refunds received in Q2 into customer experience and price investments in the second half. For this reason, I encourage you to consider Q2 and Q3 performance together to assess the underlying growth of the business,” said John David Rainey, Walmart Inc. executive vice president and chief financial officer. ────────────────────────────────────────────────────────────────────────────── Third quarter The Company’s third quarter fiscal 2027 guidance is based on the following Q3 FY26 figures: Net sales: $177.8 billion, adjusted operating income1: $7.3 billion, and adjusted EPS1:$0.62. Consolidated metric Q3 FY27 Net sales (cc) Increase 3.0% to 3.75% Operating income (cc) Increase 2.0% to 4.0% Adjusted EPS $0.62 to $0.64
Fiscal year 2027 The Company’s fiscal year guidance is based on the following FY26 figures: Net sales: $706.4 billion, adjusted operating income1: $31.0 billion, and adjusted EPS1: $2.64. Consolidated Original from As of 5.21.2026 As of 8.20.2026 metric 2.19.2026 Net sales (cc) Increase 3.5% to Unchanged Increase 4.0% to 4.5% 5.0% Adj. operating Increase 6.0% to Unchanged Increase 7.0% to income (cc) 8.0% 8.5% Adj. Interest, Increase net2 approximately Unchanged Unchanged $200M to $300M Effective tax Approximately Unchanged Unchanged rate 23.5% to 24.5% Adj. EPS $2.75 to $2.85 Unchanged $2.80 to $2.87 Capital Approximately Approximately expenditures 3.5% of net sales Unchanged 4.0% of net sales 1For relevant non-GAAP reconciliations, see Q3 FY26 and Q4 FY26 earnings release furnished on Form 8-K on November 20, 2025 and February 19, 2026, respectively. 2See additional information at the end of this release regarding non-GAAP financial measures. cc - constant currency
About Walmart Walmart Inc. (Nasdaq: WMT) is a people-led, tech-powered omnichannel retailer helping people save money and live better - anytime and anywhere - in stores, online, and through their mobile devices. Each week, approximately 280 million customers and members visit more than 10,900 stores and numerous eCommerce websites in 19 countries. With fiscal year 2026 revenue of $713 billion, Walmart employs approximately 2.1 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy, and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart, on X at x.com/walmart, and on LinkedIn at linkedin.com/company/walmart. Investor Relations contact:Steph Wissink – ir@walmart.com Media Relations contact:Jennifer Rodriguez – press@walmart.com
Forward-looking statements This release and related management commentary contains statements that may be "forward-looking statements" as defined in, and are intended to enjoy the protection of the safe harbor for forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Assumptions on which such forward-looking statements are based are also forward-looking statements. Statements of our guidance, projections, estimates, expectations, plans, and objectives for fiscal 2027 in this release and related management commentary are forward-looking statements. Assumptions on which such forward-looking statements are based are also forward-looking statements. Such forward-looking statements are not statements of historical facts, but instead express our estimates or expectations for our consolidated economic performance or results of operations for future periods or as of future dates or events or developments that may occur in the future or discuss our plans, objectives or goals. These forward-looking statements can be identified by their use of words or phrases such as “anticipate,” “could,” “could be,” “believe,” “expect,” “forecast,” “plan,” “projected,” “will be” “will improve,” variations of such words or phrases or similar words and phrases denoting anticipated or expected occurrences or results. The forward-looking statements that we make are based on our knowledge of our business and our operating environment and assumptions that we believe to be or will believe to be reasonable when such forward-looking statements were or are made. Our actual results may differ materially from those expressed in or implied by any of these forward-looking statements as a result of changes in circumstances, assumptions not being realized or other risks, uncertainties and factors including: economic, capital markets and business conditions; trends and events around the world and in the markets in which we operate; currency exchange rate fluctuations, changes in market interest rates and market levels of wages; changes in the size of various markets, including eCommerce markets; unemployment levels; inflation or deflation, generally and in particular product categories; consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels and demand for certain merchandise; the effectiveness of the implementation and operation of our strategies, plans, programs and initiatives; unexpected changes in our objectives and plans; the impact of acquisitions, investments, divestitures, store or club closures, and other strategic decisions; our ability to successfully integrate acquired businesses, including within the eCommerce space; changes in the trading prices of certain equity investments we hold; initiatives of competitors, competitors' entry into and expansion in our markets, and competitive pressures (including pressures arising from the development and deployment of artificial intelligence technologies); customer traffic and average ticket in our stores and clubs and on our eCommerce websites; the mix of merchandise we sell, the cost of goods we sell and the shrinkage we experience; trends in consumer shopping habits around the world and in the markets in which we operate; our gross profit margins; the financial performance of Walmart and each of its segments, including the amounts of our cash flow during various periods; transportation, energy and utility costs; commodity prices and the price of gasoline and diesel fuel; supply chain disruptions and disruptions in seasonal buying patterns; the availability of goods from suppliers and the cost of goods acquired from suppliers; consumer acceptance of and response to our stores, clubs, eCommerce, digital, and agentic platforms, programs, merchandise offerings and delivery methods; cyber security events affecting us and related costs and impact to the business; developments in, outcomes of, and costs incurred in legal or regulatory proceedings to which we are a party or are subject, and the liabilities, obligations and expenses, if any, that we may incur in connection therewith; expenses pertaining to liabilities for which we self-insure, including general liability, workers’compensation, auto liability, product liability and employee-related healthcare costs; consumer enrollment in health and drug insurance programs and such programs’ reimbursement rates and drug formularies; our effective tax rate and the factors affecting our effective tax rate, including assessments of certain tax contingencies, valuation allowances, changes in law, administrative audit outcomes, impact of discrete items and the mix of earnings between the U.S. and Walmart's international operations; changes in existing tax, labor and other laws and regulations and changes in tax rates including the enactment of laws and the adoption and interpretation of administrative rules and regulations; the imposition of new taxes on imports, new tariffs and changes in existing tariff rates; the imposition of new trade restrictions and changes in existing trade restrictions; adoption or creation of new, and modification of existing, governmental policies, programs, initiatives and actions in the markets in which Walmart operates and elsewhere and actions with respect to such policies, programs and initiatives; changes in accounting estimates or judgments; the level of public assistance payments; natural disasters, changes in climate, pandemics or other crises, geopolitical events and catastrophic events; and changes in generally accepted accounting principles in the United States. Our most recent annual report on Form 10-K and subsequent quarterly report filed with the SEC discusses other risks and factors that could cause actual results to differ materially from those expressed or implied by any forward-looking statement in the release and related management commentary. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating the forward-looking statements in this release. Walmart cannot assure you that the results reflected in or implied by any forward-looking statement will be realized or, even if substantially realized, that those results will have the forecasted or expected consequences and effects for or on our operations or financial performance. The forward-looking statements made in the release are as of the date of this release. Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances. This release and related management commentary references certain non-GAAP measures as defined under SEC rules, including net sales and operating income on a constant currency basis, adjusted operating income, free cash flow, and return on investment. Information about the non-GAAP measures as required by Regulation G and Item 10(e) of Regulation S-K regarding non-GAAP measures for the applicable periods can be found in our previously filed reports on Form 10-K and earnings releases filed via Form 8-K with the SEC, which are available at stock.walmart.com.
(Amounts in millions) Six Months Ended Cash flows from operating July 31, activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Consolidated net income $ 12,019 $ 11,790 Adjustments to reconcile consolidated net income to net cash provided by operating activities: Depreciation and amortization 7,746 6,856 Investment (gains) and losses, 947 -2,066 net Deferred income taxes 845 1,551 Other operating activities 816 1,370 Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:
Receivables, net 9 -405 Inventories -2,660 -659 Accounts payable 1,648 1,302 Accrued liabilities -1,449 -1,453 Accrued income taxes -211 66 Net cash provided by operating 19,710 18,352 activities Cash flows from investing activities: Payments for property and -14,181 -11,409 equipment Proceeds from the disposal of property 124 41 and equipment Proceeds from disposal of certain 42 775 strategic investments Other investing activities -249 -606 Net cash used in investing -14,264 -11,199 activities Cash flows from financing activities: Net change in short-term 3,923 759 borrowings Proceeds from issuance of 4,230 3,983 long-term debt Repayments of long-term debt -2,303 -875 Dividends paid -3,945 -3,755 Purchase of Company stock -5,104 -6,200 Other financing activities -1,643 -905 Net cash used in financing -4,842 -6,993 activities Effect of exchange rates on cash, cash 67 181 equivalents and restricted cash Net increase in cash, cash equivalents 671 341 and restricted cash Cash, cash equivalents and restricted 11,321 9,536 cash at beginning of year Cash, cash equivalents and restricted $ 11,992 $ 9,877 cash at end of period
Membership and other income includes membership fees and other items such as rental and tenant income, recycling income, gift card breakage income, as well as other income from corporate campus facilities and miscellaneous items.
Gross profit defined as net sales less cost of sales. Operating expenses refers to operating, selling, general and administrative expenses.
See additional information at the end of the release regarding non-GAAP financial measures.
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, and it is important to review in conjunction with the company’s financial results reported in accordance with GAAP. Walmart's definition of comparable sales includes sales from stores and clubs open for the previous 12 months, including remodels, relocations, expansions and conversions, as well as eCommerce sales. Comparable sales excluding fuel is also an important, separate metric that indicates the performance of our existing stores and clubs without considering fuel, which is volatile and unpredictable. Other companies in our industry may calculate comparable sales differently, limiting the comparability of the metric. 12
Walmart Inc. Reconciliations of and Other Information Regarding Non-GAAP Financial Measures (Unaudited)
The following information provides reconciliations of certain non-GAAP financial measures presented in the press release to which this reconciliation is attached to the most directly comparable financial measures calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP). The company has provided the non-GAAP financial information presented in the press release, which is not calculated or presented in accordance with GAAP, as information supplemental and in addition to the financial measures presented in the press release that are calculated and presented in accordance with GAAP. Such non-GAAP financial measures should not be considered superior to, as a substitute for or alternative to, and should be considered in conjunction with, the GAAP financial measures presented in the press release. The non-GAAP financial measures in the press release may differ from similar measures used by other companies.
In discussing our operating results, the term currency exchange rates refers to the currency exchange rates we use to convert the operating results for countries where the functional currency is not the U.S. dollar into U.S. dollars. We calculate the effect of changes in currency exchange rates as the difference between current period activity translated using the current period's currency exchange rates and the comparable prior year period's currency exchange rates. Additionally, no currency exchange rate fluctuations are calculated for non-USD acquisitions until owned for 12 months.
Throughout our discussion, we refer to the results of this calculation as the impact of currency exchange rate fluctuations. When we refer to constant currency operating results, this means operating results without the impact of the currency exchange rate fluctuations. The disclosure of constant currency amounts or results permits investors to better understand Walmart’s underlying performance without the effects of currency exchange rate fluctuations.
The table below reflects the calculation of constant currency for total revenues, net sales and operating income for the three and six months ended July 31, 2026.
Adjusted operating income is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain charges included in operating income calculated in accordance with GAAP. Management believes that adjusted operating income is a meaningful measure to share with investors because it best allows comparison of the performance with that of the comparable period. In addition, adjusted operating income affords investors a view of what management considers Walmart’s core earnings performance and the ability to make a more informed assessment of such core earnings performance as compared with that of the prior year.
When we refer to adjusted operating income in constant currency, this means adjusted operating results without the impact of currency exchange rate fluctuations. The disclosure of constant currency amounts or results permits investors to better understand Walmart’s underlying performance without the effects of currency exchange rate fluctuations. The table below reflects the calculation of adjusted operating income and adjusted operating income in constant currency for the three and six months ended July 31, 2026, and the calculation of adjusted operating income for the three and six months ended July 31, 2025.
1 Represents charges to certain legal matters which were outside the normal course of our operations and recorded in Corporate and support.
2 Business reorganization charges in the Walmart U.S. segment and Corporate and support relate to strategic efforts to align our global platforms for the six months ended July 31, 2026. Business reorganization charges for the three and six months ended July 31, 2025 primarily relate to expenses incurred in connection with strategic supply chain decisions made in the Sam’s Club U.S. segment, as well as incremental business reorganization charges recorded in Corporate and support.
Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company's financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity.
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. Net cash provided by operating activities was $19.7 billion for the six months ended July 31, 2026, which represents an increase of $1.4 billion when compared to the same period in the prior year. The increase was primarily due to an increase in cash provided by operating income, partially offset by timing of inventory receipts. Free cash flow for the six months ended July 31, 2026 was $5.5 billion, which represents a decrease of $1.4 billion when compared to the same period in the prior year. The decrease in free cash flow was due to an increase of $2.8 billion in capital expenditures to support our omnichannel growth strategy, partially offset by the increase in net cash provided by operating activities described above.
Walmart’s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our Consolidated Statements of Cash Flows.
Although other companies report their free cash flow, numerous methods may exist for calculating a company’s free cash flow. As a result, the method used by Walmart’s management to calculate our free cash flow may differ from the methods used by other companies to calculate their free cash flow.
The following table sets forth a reconciliation of free cash flow, a non-GAAP financial measure, to net cash provided by operating activities, which we believe to be the GAAP financial measure most directly comparable to free cash flow, as well as information regarding net cash used in investing activities and net cash used in financing activities.
1 "Net cash used in investing activities" includes payments for property and equipment, which is also included in our computation of free cash flow. 15 Adjusted EPS
Adjusted diluted earnings per share attributable to Walmart (adjusted EPS) is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain amounts included in the diluted earnings per share attributable to Walmart calculated in accordance with GAAP (EPS), the most directly comparable financial measure calculated in accordance with GAAP. Management believes that adjusted EPS is a meaningful measure to share with investors because it best allows comparison of the performance with that of the comparable period. In addition, adjusted EPS affords investors a view of what management considers Walmart’s core earnings performance and the ability to make a more informed assessment of such core earnings performance with that of the prior year.
We adjust for the unrealized and realized gains and losses on our equity and other investments each quarter because although the investments are strategic decisions for our retail operations, management’s measurement of each strategy is primarily focused on the operational results rather than the fair value of such investments. Additionally, management does not forecast changes in the fair value of its equity and other investments. Accordingly, management adjusts EPS each quarter for the unrealized and realized gains and losses related to those investments.
Tax impacts are calculated based on the nature of the item, including any realizable deductions, and statutory rates in effect for relevant jurisdictions. NCI impacts are based on the ownership percentages of our noncontrolling interests, where applicable.
We have calculated adjusted EPS for the three and six months ended July 31, 2026 by adjusting EPS for the following:
1. unrealized and realized gains and losses on our equity and other investments;
Three Months Ended July 31, 20261 ────────────────────────────────────────────────────────────────────────────── Diluted earnings per share: Reported EPS $0.80 Adjustments: Pre-Tax Impact Tax Impact2 NCI Impact Net Impact Unrealized and realized (gains) and losses on $0.15 $(0.03) $— $0.12 equity and other investments Certain tax -0.06 -0.05 — -0.11 matter3 Net $0.01 adjustments Adjusted EPS $0.81
Six Months Ended July 31, 20261 ────────────────────────────────────────────────────────────────────────────── Diluted earnings per share: Reported EPS $1.46 Adjustments: Pre-Tax Impact Tax Impact2 NCI Impact Net Impact Unrealized and realized (gains) and losses on $0.12 $(0.02) $— $0.10 equity and other investments Certain tax -0.06 -0.05 — -0.11 matter3 Business reorganization 0.02 -0.01 — 0.01 charges Net $— adjustments Adjusted EPS $1.46
1 Quarterly adjustments or adjusted EPS may not sum to YTD adjustments or YTD adjusted EPS due to rounding. Additionally, the individual components in the tables above may include immaterial rounding.
2 The reported effective tax rate was 18.5% and 20.7% for the three and six months ended July 31, 2026, respectively. Adjusted for the above items, the effective tax rate was 24.8% and 23.9% for the three and six months ended July 31, 2026.
3 Impact includes benefit recorded in provision for income taxes as well as interest, net. For the quarter ended July 31, 2026, interest, net was $0.2 billion. Excluding the interest impact of this matter, adjusted interest, net was $0.6 billion. 16 As previously disclosed in our second quarter ended July 31, 2025 press release, we have calculated adjusted EPS for the three and six months ended July 31, 2025 for the following:
1. unrealized and realized gains and losses on our equity and other investments;
2. charges related to certain legal matters which were outside the normal course of our operations and recorded in Corporate and support; and
3. business reorganization charges, primarily related to expenses incurred in connection with strategic supply chain decisions made in the Sam’s Club U.S. segment, as well as incremental business reorganization charges recorded in Corporate and support.
Three Months Ended July 31, 20251 ────────────────────────────────────────────────────────────────────────────── Diluted earnings per share: Reported EPS $0.88 Adjustments: Pre-Tax Impact Tax Impact2 NCI Impact Net Impact Unrealized and realized (gains) and losses on $(0.33) $0.07 $— $(0.26) equity and other investments Certain legal 0.06 -0.01 — 0.05 matters Business reorganization 0.02 -0.01 — 0.01 charges Net $(0.20) adjustments Adjusted EPS $0.68
Six Months Ended July 31, 20251 ────────────────────────────────────────────────────────────────────────────── Diluted earnings per share: Reported EPS $1.43 Adjustments: Pre-Tax Impact Tax Impact2 NCI Impact Net Impact Unrealized and realized (gains) and losses on $(0.26) $0.06 $— $(0.20) equity and other investments Certain legal 0.06 -0.01 — 0.05 matters Business reorganization 0.02 -0.01 — 0.01 charges Net $(0.14) adjustments Adjusted EPS $1.29
1 Quarterly adjustments or adjusted EPS may not sum to YTD adjustments or YTD adjusted EPS due to rounding. Additionally, the individual components in the tables above may include immaterial rounding.
2 The reported effective tax rate was 23.3% and 23.0% for the three and six months ended July 31, 2025, respectively. Adjusted for the above item, the effective tax rate was 24.3% and 23.6% for the three and six months ended July 31, 2025. 17 Return on investment
We include return on assets ("ROA") and return on investment (“ROI”) as metrics to assess our return on capital. ROA is the most directly comparable measure based on our financial statements presented in accordance with GAAP, while ROI is considered a non-GAAP financial measure. Management believes ROI is a meaningful metric to share with investors because it helps investors assess how effectively Walmart is deploying its assets. Trends in ROI can fluctuate over time as management balances long-term strategic initiatives with possible short- term impacts.
Our calculation of ROI is considered a non-GAAP financial measure because it uses financial measures that differ from those used in ROA, the most directly comparable GAAP financial measure. ROA is consolidated net income for the period divided by average total assets for the period. We define ROI as operating income plus interest income, depreciation and amortization, and rent expense for the trailing 12 months divided by average invested capital during that period. We consider average invested capital to be the average of our beginning and ending total assets, plus average accumulated depreciation and amortization, less average accounts payable and average accrued liabilities for that period. Although ROI is a standard financial measure, numerous methods exist for calculating a company's ROI. As a result, the method used by management to calculate our ROI may differ from the methods used by other companies to calculate their ROI.
ROA was 8.0 percent and 8.3 percent for the trailing 12 months ended July 31, 2026 and 2025, respectively. The decrease in ROA was primarily due to net decreases in the fair value of our equity and other investments and an increase in average total assets resulting from higher purchases of property and equipment, offset by an increase in operating income. ROI was 15.4 percent and 15.1 percent for the trailing 12 months ended July 31, 2026 and 2025, respectively. The increase in ROI was primarily due to an increase in operating income from improved business performance, partially offset by an increase in average invested capital due to higher purchases of property and equipment. 18 The calculation of ROA and ROI, along with a reconciliation of ROI to the calculation of ROA, the most comparable GAAP financial measure, is as follows:
1 The average is calculated using the account balance at the end of the current and prior comparative periods. 19
Full text with the tables
Walmart reports
second quarter results
•Revenue growth of
5.9%, up 5.1% in
constant currency (cc)1
•Operating income
growth of 28.8%, up
17.4% adjusted (cc)1
•eCommerce sales up 23%
globally
•GAAP EPS of $0.80;
Adjusted EPS1of $0.81
•Company issues
guidance for Q3; raises
outlook for FY27
“
BENTONVILLE, Ark.,
August 20, 2026–
Walmart Inc. (NASDAQ:
WMT) announces
second-quarter results
with strong growth in
revenue, including
eCommerce, which grew
23% globally with
strength across Our team delivered
segments. Walmart U.S. another good quarter,
comp sales2grew 2.6%, and we continue to make
led by growth in steady progress on the
transactions and long-term value drivers
includes 80 bps of our business. Our
headwind from health & multi-year growth in
wellness. The Company eCommerce is evidence
issues guidance for the that customers are
third quarter and choosing Walmart
raises its outlook for because we deliver
the fiscal year. For price, speed, and
Q3, net sales are convenience across a
expected to grow 3.0% broad assortment. At
to 3.75% and adjusted Walmart, they can have
operating income to it all.”
grow 2.0% to 4.0%. Net John Furner
sales for FY27 are President and CEO,
expected to grow 4.0% Walmart
to 5.0% and adjusted
operating income to
grow 7.0% to 8.5%, all
in constant currency
(“cc”)1. Adjusted
EPS1is expected to be
$0.62 to $0.64 for Q3
and $2.80 to $2.87 for
FY27.
Second Quarter
Highlights
•Revenue of $187.9
billion, up 5.9%, or
5.1% (cc)1
•Global eCommerce sales
grew 23%, led by
store-fulfilled pickup
& delivery and
marketplace
•Global advertising
business3up 38%, with
strength across
segments. Walmart U.S.
advertising up 38%
•Membership fee revenue
grew 17% globally
•Gross profit rate up
96 bps, led by Walmart
U.S., primarily
impacted by tariff
refund impacts noted
below
•Operating income up
$2.1 billion, or 28.8%;
up 17.4% adjusted
(cc)1; which includes
the impact of tariff
refunds received,
partially offset by
price investments in
the quarter. Setting
aside this net impact,
underlying operating
income growth was at
the top end of our
guidance. Our outlook
reflects the continued
prioritization of
remaining tariff
refunds into price
investments
•Adjusted EPS1of $0.81
excludes the impact,
net of tax, from a net
loss of $0.12 on equity
and other investments,
and net benefit of
$0.11 from a certain
tax matter
•ROA at 8.0%; ROI at
15.4%1
•Global inventory up
6.7%; up 6.0% (cc)4,
due to strategic
initiatives and
inflation
1See additional
information at the end
of this release
regarding non-GAAP
financial measures.
2Comp sales for the
13-week period ended
July 31, 2026 compared
to the 13-week period
ended August 1, 2025
and excludes fuel. See
Supplemental Financial
Information for
additional
information.
3Our global
advertising business
is recorded in either
net sales or as a
reduction to cost of
sales, depending on
the nature of the
advertising
arrangement.
4Inventory grew 6.7%
on a reported basis
and grew 6.0% in
constant currency,
excluding a ~$0.4
billion foreign
currency impact.
“cc” - constant
currency
Key Financial Metrics
Dollars in billions, except per share data. Dollar and percentage changes
may not
recalculate due to rounding. Charts may not be to scale.
Balance Sheet and Liquidity
•Cash and cash equivalents of $11.5 billion
•Total debt of $57.2 billion2
•Operating cash flow of $19.7 billion, an increase
of $1.4 billion
•Free cash flow1of $5.5 billion, a decrease of
$1.4 billion
•Repurchased 42.3 million shares YTD, or $5.1
billion3
•Inventory of $61.6 billion, an increase of $3.9
billion, or 6.7%, up 6.0% cc4
1See additional information at the end of this release regarding non-GAAP
financial measures.
2Debt includes short-term borrowings, long-term debt and finance lease
obligations due within one year, and long-term debt and finance lease
obligations.
3$25.1 billion remaining of the $30 billion authorization approved in
February 2026.
4Inventory grew 6.7% on a reported basis and grew 6.0% in constant currency,
excluding a ~$0.4 billion foreign currency impact.
cc - constant currency
2
Business Highlights
and Strategic Initiatives
Dollars in billions, except as noted. Dollar and percentage changes may not
recalculate due to rounding.
Walmart U.S. Q2 FY27 Q2 FY26 Change
Net sales $125.2 $120.9 $4.3 3.5%
Comp sales (ex. fuel)2 2.6% 4.6% NP NP
Transactions 1.5% 1.5% NP NP
Average ticket 1.1% 3.1% NP NP
eCommerce contribution to comp ~510 bps ~420 bps NP NP
Operating income $8.1 $6.7 $1.4 20.6%
Walmart U.S.
• Sales reflected continued strong momentum in eCommerce and broad-based share
gains, partially offset by 125 bps headwind to comp sales from pharmacy
deflation related to new maximum fair price regulation (effective Jan 1)
• eCommerce sales increased 24%, with strength in store-fulfilled delivery,
advertising, and marketplace
• Strong advertising growth continued, up 38% overall, including 43% increase in
Walmart Connect (ex-VIZIO)
• Gross profit grew 158 bps due to the benefit associated with tariff refunds
and improved business mix; partially offset by price investments and higher fuel
costs
• Membership fee revenue grew double-digits as Walmart+ net adds reflected a
record second quarter high
• Operating expense deleveraged 72 bps due to higher claims expense,
depreciation, and associate healthcare costs
• Operating income up 20.6%, reflects higher gross profit, as noted above, and
improved eCommerce economics
• Inventory increased 6.3% due primarily to strategic initiatives and inflation
Walmart International Q2 FY27 Q2 FY26 Change
Net sales $35.2 $31.2 $4.0 12.8%
Net sales (cc)1 $33.7 $31.2 $2.5 7.9%
Operating income $1.4 $1.2 $0.2 16.6%
Operating income (cc)1 $1.3 $1.2 $0.1 5.7%
Walmart International
• Growth in net sales (cc) 1 across markets, with momentum in eCommerce and
stores
◦ Transaction counts and unit volumes up, contributing to growth across all
categories
• eCommerce sales up 19%, led by store-fulfilled pickup & delivery, with digital
mix up across markets
• Advertising business 3 grew 20%, led by Flipkart Ads
• Operating income growth (cc) 1 benefited by lower losses in eCommerce and
business mix changes
• Currency rate fluctuations positively affected sales by $1.5 billion and
operating income by $0.1 billion
1 See additional information at the end of this release regarding non-GAAP
financial measures.
2 See Supplemental Financial Information for additional information.
3 Our global advertising business is recorded in either net sales or as a
reduction to cost of sales, depending on the nature of the advertising
arrangement.
NP - Not provided
cc - constant currency
3
Sam’s Club U.S. Q2 FY27 Q2 FY26 Change
Net sales $25.7 $23.6 $2.1 8.8%
Net sales (ex. fuel) $22.1 $21.2 $1.0 4.5%
Comp sales (ex. fuel)1 4.4% 5.9% NP NP
Transactions 7.0% 3.9% NP NP
Average ticket -2.5% 2.0% NP NP
eCommerce contribution to comp ~450 bps ~350 bps NP NP
Operating income $0.7 $0.5 $0.2 44.3%
Adjusted operating income2 $0.7 $0.6 $0.1 23.3%
Sam’s Club U.S.
• Comp sales driven by increased transactions and total unit volumes with
strength in grocery and general merchandise
• eCommerce sales up 26% with continued strong growth in club-fulfilled pickup &
delivery
• Membership fee revenue grew 6% driven by steady growth in member counts and
Plus penetration
• Operating income growth reflects the benefit associated with tariff refunds
and membership growth
• Inventory up 8.0%, primarily related to higher fuel costs and volumes,
including fuel upstreaming with a strategic partner
1 See Supplemental Financial Information for additional information.
2 See additional information at the end of this release regarding non-GAAP
financial measures.
NP - Not provided
4
Guidance
The following guidance reflects the Company’s
expectations as of August20, 2026.This guidanceis
subject to substantial risk and uncertainty that
could cause actual results to differ materially
from these expectations. These risks and
uncertainties include, but are not limited to, the
factors set forth below under the heading
Forward-looking statements. Additionally, guidance
is provided on a non-GAAP basis as the Company
cannot predict certain elements that are included
in reported GAAP results, such as the changes in
fair value of the Company’s equity and other
investments. Growth rates reflect an adjusted
basis for prior year results.
“Our business model is only getting stronger and
more durable, and we’re pleased to raise our
guidance for the year. For Q3 sales guidance, we
expect a headwind of over 100bps to growth related
to a timing shift of Flipkart’s Big Billion Days
between Q3 and Q4. Our operating income outlook
reflects the continued prioritization of tariff
refunds received in Q2 into customer experience
and price investments in the second half. For this
reason, I encourage you to consider Q2 and Q3
performance together to assess the underlying
growth of the business,” said John David Rainey,
Walmart Inc. executive vice president and chief
financial officer.
──────────────────────────────────────────────────────────────────────────────
Third quarter
The Company’s third quarter fiscal 2027 guidance
is based on the following Q3 FY26 figures:
Net sales:
$177.8 billion, adjusted operating income1:
$7.3 billion, and adjusted EPS1:$0.62.
Consolidated metric Q3 FY27
Net sales (cc) Increase 3.0% to 3.75%
Operating income (cc) Increase 2.0% to 4.0%
Adjusted EPS $0.62 to $0.64
Fiscal year 2027
The Company’s
fiscal year
guidance is
based on the
following FY26
figures:
Net sales:
$706.4 billion,
adjusted
operating
income1:
$31.0 billion,
and adjusted
EPS1: $2.64.
Consolidated Original from As of 5.21.2026 As of 8.20.2026
metric 2.19.2026
Net sales (cc) Increase 3.5% to Unchanged Increase 4.0% to
4.5% 5.0%
Adj. operating Increase 6.0% to Unchanged Increase 7.0% to
income (cc) 8.0% 8.5%
Adj. Interest, Increase
net2 approximately Unchanged Unchanged
$200M to $300M
Effective tax Approximately Unchanged Unchanged
rate 23.5% to 24.5%
Adj. EPS $2.75 to $2.85 Unchanged $2.80 to $2.87
Capital Approximately Approximately
expenditures 3.5% of net sales Unchanged 4.0% of net
sales
1For relevant
non-GAAP
reconciliations,
see Q3 FY26 and
Q4 FY26 earnings
release
furnished on
Form 8-K on
November 20,
2025 and
February 19,
2026,
respectively.
2See additional
information at
the end of this
release
regarding
non-GAAP
financial
measures.
cc - constant
currency
5
About Walmart
Walmart Inc. (Nasdaq: WMT) is a people-led, tech-powered omnichannel
retailer helping people save money and live better - anytime and anywhere -
in stores, online, and through their mobile devices. Each week,
approximately 280 million customers and members visit more than 10,900
stores and numerous eCommerce websites in 19 countries. With fiscal year
2026 revenue of $713 billion, Walmart employs approximately 2.1 million
associates worldwide. Walmart continues to be a leader in sustainability,
corporate philanthropy, and employment opportunity. Additional information
about Walmart can be found by visiting corporate.walmart.com, on Facebook at
facebook.com/walmart, on X at x.com/walmart, and on LinkedIn at
linkedin.com/company/walmart.
Investor Relations contact:Steph Wissink – ir@walmart.com
Media Relations contact:Jennifer Rodriguez – press@walmart.com
6
Forward-looking statements
This release and related management commentary contains statements that may
be "forward-looking statements" as defined in, and are intended to enjoy the
protection of the safe harbor for forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended.
Assumptions on which such forward-looking statements are based are also
forward-looking statements. Statements of our guidance, projections,
estimates, expectations, plans, and objectives for fiscal 2027 in this
release and related management commentary are forward-looking statements.
Assumptions on which such forward-looking statements are based are also
forward-looking statements. Such forward-looking statements are not
statements of historical facts, but instead express our estimates or
expectations for our consolidated economic performance or results of
operations for future periods or as of future dates or events or
developments that may occur in the future or discuss our plans, objectives
or goals. These forward-looking statements can be identified by their use of
words or phrases such as “anticipate,” “could,” “could be,” “believe,”
“expect,” “forecast,” “plan,” “projected,” “will be” “will improve,”
variations of such words or phrases or similar words and phrases denoting
anticipated or expected occurrences or results. The forward-looking
statements that we make are based on our knowledge of our business and our
operating environment and assumptions that we believe to be or will believe
to be reasonable when such forward-looking statements were or are made. Our
actual results may differ materially from those expressed in or implied by
any of these forward-looking statements as a result of changes in
circumstances, assumptions not being realized or other risks, uncertainties
and factors including: economic, capital markets and business conditions;
trends and events around the world and in the markets in which we operate;
currency exchange rate fluctuations, changes in market interest rates and
market levels of wages; changes in the size of various markets, including
eCommerce markets; unemployment levels; inflation or deflation, generally
and in particular product categories; consumer confidence, disposable
income, credit availability, spending levels, shopping patterns, debt levels
and demand for certain merchandise; the effectiveness of the implementation
and operation of our strategies, plans, programs and initiatives; unexpected
changes in our objectives and plans; the impact of acquisitions,
investments, divestitures, store or club closures, and other strategic
decisions; our ability to successfully integrate acquired businesses,
including within the eCommerce space; changes in the trading prices of
certain equity investments we hold; initiatives of competitors, competitors'
entry into and expansion in our markets, and competitive pressures
(including pressures arising from the development and deployment of
artificial intelligence technologies); customer traffic and average ticket
in our stores and clubs and on our eCommerce websites; the mix of
merchandise we sell, the cost of goods we sell and the shrinkage we
experience; trends in consumer shopping habits around the world and in the
markets in which we operate; our gross profit margins; the financial
performance of Walmart and each of its segments, including the amounts of
our cash flow during various periods; transportation, energy and utility
costs; commodity prices and the price of gasoline and diesel fuel; supply
chain disruptions and disruptions in seasonal buying patterns; the
availability of goods from suppliers and the cost of goods acquired from
suppliers; consumer acceptance of and response to our stores, clubs,
eCommerce, digital, and agentic platforms, programs, merchandise offerings
and delivery methods; cyber security events affecting us and related costs
and impact to the business; developments in, outcomes of, and costs incurred
in legal or regulatory proceedings to which we are a party or are subject,
and the liabilities, obligations and expenses, if any, that we may incur in
connection therewith; expenses pertaining to liabilities for which we
self-insure, including general liability, workers’compensation, auto
liability, product liability and employee-related healthcare costs; consumer
enrollment in health and drug insurance programs and such programs’
reimbursement rates and drug formularies; our effective tax rate and the
factors affecting our effective tax rate, including assessments of certain
tax contingencies, valuation allowances, changes in law, administrative
audit outcomes, impact of discrete items and the mix of earnings between the
U.S. and Walmart's international operations; changes in existing tax, labor
and other laws and regulations and changes in tax rates including the
enactment of laws and the adoption and interpretation of administrative
rules and regulations; the imposition of new taxes on imports, new tariffs
and changes in existing tariff rates; the imposition of new trade
restrictions and changes in existing trade restrictions; adoption or
creation of new, and modification of existing, governmental policies,
programs, initiatives and actions in the markets in which Walmart operates
and elsewhere and actions with respect to such policies, programs and
initiatives; changes in accounting estimates or judgments; the level of
public assistance payments; natural disasters, changes in climate, pandemics
or other crises, geopolitical events and catastrophic events; and changes in
generally accepted accounting principles in the United States.
Our most recent annual report on Form 10-K and subsequent quarterly report
filed with the SEC discusses other risks and factors that could cause actual
results to differ materially from those expressed or implied by any
forward-looking statement in the release and related management commentary.
We urge you to consider all of the risks, uncertainties and factors
identified above or discussed in such reports carefully in evaluating the
forward-looking statements in this release. Walmart cannot assure you that
the results reflected in or implied by any forward-looking statement will be
realized or, even if substantially realized, that those results will have
the forecasted or expected consequences and effects for or on our operations
or financial performance. The forward-looking statements made in the release
are as of the date of this release. Walmart undertakes no obligation to
update these forward-looking statements to reflect subsequent events or
circumstances.
This release and related management commentary references certain non-GAAP
measures as defined under SEC rules, including net sales and operating
income on a constant currency basis, adjusted operating income, free cash
flow, and return on investment. Information about the non-GAAP measures as
required by Regulation G and Item 10(e) of Regulation S-K regarding non-GAAP
measures for the applicable periods can be found in our previously filed
reports on Form 10-K and earnings releases filed via Form 8-K with the SEC,
which are available at stock.walmart.com.
7
Walmart Inc.
Condensed Consolidated Statements of Income
(Unaudited)
(…
in
m… T… S…
e… M… M…
p… E… E…
s… J… J…
d… 3… P… 3… P…
R… 2… 2… C… 2… 2… C…
──────────────────────────────────────────────────────────────────────────────
N… $ 18… $ 17… 5.9 % $ 36… $ 33… 6.5 %
s…
M…
a… 1,… 1,… 11… % 3,… 3,… 19… %
o…
i…
T… 18… 17… 5.9 % 36… 34… 6.6 %
r…
C…
a…
e…
C…
of 13… 13… 4.5 % 27… 25… 5.8 %
s…
O…
s…
g… 39… 37… 6.4 % 76… 71… 7.6 %
a…
a…
e…
O… 9,… 7,… 28… % 16… 14… 17… %
i…
I…
D… 137 651 (7… %) 711 1,… (3… %)
F… 126 118 6.8 % 251 236 6.4 %
l…
I… -92 -94 (2… %) -1… -1… (8… %)
i…
I… 171 675 (7… %) 791 1,… (3… %)
n…
O…
(… 1,… -2… NM 925 -2… NM
a…
l…
I…
b… 8,… 9,… (1… %) 15… 15… (1… %)
i…
t…
P…
f… 1,… 2,… (3… %) 3,… 3,… (1… %)
i…
t…
C…
n… 6,… 7,… (8… %) 12… 11… 1.9 %
i…
C…
n…
i…
a… -1… -1… 30… % -3… -2… 16… %
to
n…
i…
C…
n…
i… $ 6,… $ 7,… (9… %) $ 11… $ 11… 1.6 %
a…
to
W…
N…
i…
p…
c…
s…
B…
n…
i…
p…
c… $ 0.… $ 0.… (9… %) $ 1.… $ 1.… 2.1 %
s…
a…
to
W…
D…
n…
i…
p…
c… 0.… 0.… (9… %) 1.… 1.… 2.1 %
s…
a…
to
W…
W…
c…
s…
o…
B… 7,… 7,… 7,… 7,…
D… 7,… 8,… 7,… 8,…
D…
d…
p… $ — $ — $ 0.… $ 0.…
c…
s…
NM: Not Meaningful
8
Walmart Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(Amounts
in
millions)
ASSETS
Current July 31, January 31, July 31,
assets: 2026 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash and
cash $ 11,529 $ 10,727 $ 9,431
equivalen…
Receivabl… 11,075 11,172 10,518
net
Inventori… 61,600 58,851 57,729
Prepaid
expenses 4,499 4,124 4,355
and other
Total
current 88,703 84,874 82,033
assets
Property
and 142,482 136,083 125,476
equipment,
net
Operating
lease 15,650 14,750 13,953
right-of-…
assets
Finance
lease
right-of-… 6,178 6,123 6,128
assets,
net
Goodwill 28,260 28,735 29,060
Other
long-term 12,641 14,103 14,187
assets
Total $ 293,914 $ 284,668 $ 270,837
assets
LIABILITI…
REDEEMABLE
NONCONTRO…
INTEREST,
AND
SHAREHOLD…
EQUITY
Current
liabiliti…
Short-term $ 10,479 $ 6,596 $ 3,837
borrowings
Accounts 64,318 63,061 60,086
payable
Dividends 3,949 — 3,783
payable
Accrued 30,074 31,187 28,821
liabiliti…
Accrued
income 746 596 620
taxes
Long-term
debt due 3,470 3,542 4,011
within one
year
Operating
lease
obligatio… 1,714 1,631 1,580
due within
one year
Finance
lease
obligatio… 880 856 828
due within
one
year
Total
current 115,630 107,469 103,566
liabiliti…
Long-term 36,462 34,624 35,640
debt
Long-term
operating 14,798 13,941 13,171
lease
obligatio…
Long-term
finance 5,952 5,905 5,947
lease
obligatio…
Deferred
income 16,273 16,549 15,656
taxes and
other
Commitmen…
and
contingen…
Redeemable
noncontro… 293 293 307
interest
Sharehold…
equity:
Common 794 797 797
stock
Capital in
excess of 7,046 6,816 5,718
par value
Retained 103,601 104,774 96,328
earnings
Accumulat…
other -13,203 -12,770 -12,733
comprehen…
loss
Total
Walmart 98,238 99,617 90,110
sharehold…
equity
Nonredeem…
noncontro… 6,268 6,270 6,440
interest
Total
sharehold… 104,506 105,887 96,550
equity
Total
liabiliti…
redeemable
noncontro… $ 293,914 $ 284,668 $ 270,837
interest,
and
sharehold…
equity
9
Walmart Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(Amounts in millions) Six Months Ended
Cash flows from operating July 31,
activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Consolidated net income $ 12,019 $ 11,790
Adjustments to reconcile
consolidated
net income to net cash
provided by
operating activities:
Depreciation and amortization 7,746 6,856
Investment (gains) and losses, 947 -2,066
net
Deferred income taxes 845 1,551
Other operating activities 816 1,370
Changes in certain assets and
liabilities, net of effects of
acquisitions and dispositions:
Receivables, net 9 -405
Inventories -2,660 -659
Accounts payable 1,648 1,302
Accrued liabilities -1,449 -1,453
Accrued income taxes -211 66
Net cash provided by operating 19,710 18,352
activities
Cash flows from investing
activities:
Payments for property and -14,181 -11,409
equipment
Proceeds from the disposal of
property 124 41
and equipment
Proceeds from disposal of
certain 42 775
strategic investments
Other investing activities -249 -606
Net cash used in investing -14,264 -11,199
activities
Cash flows from financing
activities:
Net change in short-term 3,923 759
borrowings
Proceeds from issuance of 4,230 3,983
long-term debt
Repayments of long-term debt -2,303 -875
Dividends paid -3,945 -3,755
Purchase of Company stock -5,104 -6,200
Other financing activities -1,643 -905
Net cash used in financing -4,842 -6,993
activities
Effect of exchange rates on
cash, cash 67 181
equivalents and restricted
cash
Net increase in cash, cash
equivalents 671 341
and restricted cash
Cash, cash equivalents and
restricted 11,321 9,536
cash at beginning of year
Cash, cash equivalents and
restricted $ 11,992 $ 9,877
cash at end of period
10
Walmart Inc.
Supplemental Financial Information
(Unaudited)
…
…
…
…
──────────────────────────────────────────────────────────────────────────────
%
% $ … %
… … …
…
… % $ … … %
… % … … %
… … % % … … %
… … % % … … %
… % $ % … … %
… % $ % … … %
… % $ … … %
… % … … %
… … % % … … %
… … % % … … %
… … % $ % … … %
… % $ … … %
… % $ … … %
… % … … %
… … % % … … %
… … % % … … %
… … % $ % … … %
… … % $ % … … %
5 % $ … … %
… … … % … … …
… … … $ … … … …
… % $ … … %
… % … … %
… … % % … … %
… … % % … … %
… … % $ % … … %
… % $ … … %
1
Corporate and support shown as percentage of consolidated net sales.
2
Membership and other income includes membership fees and other items such as
rental and tenant income, recycling income, gift card breakage income, as well
as other income from corporate campus facilities and miscellaneous items.
3
Gross profit defined as net sales less cost of sales. Operating expenses refers
to operating, selling, general and administrative expenses.
4
See additional information at the end of the release regarding non-GAAP
financial measures.
NP - Not provided
11
U.S. comparable sales results
With Without Fuel
Fuel Fuel Impact
13 Weeks 13 13 Weeks 13 13 Weeks 13
Ended Weeks Ended Weeks Ended Weeks
Ended Ended Ended
7/31/20… 8/1/20… 7/31/20… 8/1/20… 7/31/20… 8/1/20…
Walmart 3.1% 4.5% 2.6% 4.6% 0.5% -0.1%
U.S.
Sam’s
Club 8.5% 3.3% 4.4% 5.9% 4.1% -2.6%
U.S.
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, and
it is important to review in conjunction with the company’s financial results
reported in accordance with GAAP. Walmart's definition of comparable sales
includes sales from stores and clubs open for the previous 12 months, including
remodels, relocations, expansions and conversions, as well as eCommerce sales.
Comparable sales excluding fuel is also an important, separate metric that
indicates the performance of our existing stores and clubs without considering
fuel, which is volatile and unpredictable. Other companies in our industry may
calculate comparable sales differently, limiting the comparability of the
metric.
12
Walmart Inc.
Reconciliations of and Other Information Regarding Non-GAAP Financial
Measures
(Unaudited)
The following information provides reconciliations of certain non-GAAP financial
measures presented in the press release to which this reconciliation is attached
to the most directly comparable financial measures calculated and presented in
accordance with U.S. generally accepted accounting principles (GAAP). The
company has provided the non-GAAP financial information presented in the press
release, which is not calculated or presented in accordance with GAAP, as
information supplemental and in addition to the financial measures presented in
the press release that are calculated and presented in accordance with GAAP.
Such non-GAAP financial measures should not be considered superior to, as a
substitute for or alternative to, and should be considered in conjunction with,
the GAAP financial measures presented in the press release. The non-GAAP
financial measures in the press release may differ from similar measures used by
other companies.
Constant currency
In discussing our operating results, the term currency exchange rates refers to
the currency exchange rates we use to convert the operating results for
countries where the functional currency is not the U.S. dollar into U.S.
dollars. We calculate the effect of changes in currency exchange rates as the
difference between current period activity translated using the current period's
currency exchange rates and the comparable prior year period's currency exchange
rates. Additionally, no currency exchange rate fluctuations are calculated for
non-USD acquisitions until owned for 12 months.
Throughout our discussion, we refer to the results of this calculation as the
impact of currency exchange rate fluctuations. When we refer to constant
currency operating results, this means operating results without the impact of
the currency exchange rate fluctuations. The disclosure of constant currency
amounts or results permits investors to better understand Walmart’s underlying
performance without the effects of currency exchange rate fluctuations.
The table below reflects the calculation of constant currency for total
revenues, net sales and operating income for the three and six months ended July
31, 2026.
… …
… …
… …
… …
… …
… …
──────────────────────────────────────────────────────────────────────────────
… … … …
… …
… … … … … … … …
… … … …
$ … … % $ … … % $ … … % $ … … %
… … … … … … … …
$ … … % $ … … % $ … … % $ … … %
$ … … % $ … … % $ … … % $ … … %
… … … … … … … …
$ … … % $ … … % $ … … % $ … … %
$ … … % $ … … % $ … … % $ … … %
… … … … … … … …
$ … … % $ … … % $ … … % $ … … %
1 Change versus prior year comparable period reported results.
N/A - Not applicable
13
Adjusted operating income
Adjusted operating income is considered a non-GAAP financial measure under the
SEC’s rules because it excludes certain charges included in operating income
calculated in accordance with GAAP. Management believes that adjusted operating
income is a meaningful measure to share with investors because it best allows
comparison of the performance with that of the comparable period. In addition,
adjusted operating income affords investors a view of what management considers
Walmart’s core earnings performance and the ability to make a more informed
assessment of such core earnings performance as compared with that of the prior
year.
When we refer to adjusted operating income in constant currency, this means
adjusted operating results without the impact of currency exchange rate
fluctuations. The disclosure of constant currency amounts or results permits
investors to better understand Walmart’s underlying performance without the
effects of currency exchange rate fluctuations. The table below reflects the
calculation of adjusted operating income and adjusted operating income in
constant currency for the three and six months ended July 31, 2026, and the
calculation of adjusted operating income for the three and six months ended July
31, 2025.
(… Th…
in Mo… Sa…
m… En… Cl…
O… Ju… U.… Co…
i… 31, 20… 2025 20… 2025
──────────────────────────────────────────────────────────────────────────────
O…
i… $ 678 $ 470 $ 9,… $ 7,…
as
r…
C…
l… — — — 440
m…
B…
r… — 80 — $ 150
c…
A…
o… $ 678 $ 550 $ 9,… $ 7,…
i…
P… 23… % NP 19.1 % NP
c…
C…
e… -1… —
r…
f…
A…
o… $ 9,… $ 7,…
i…
(…
P… 17.4 % NP
c…
S…
M…
E…
… J…
… 3… …
… W… …
… U… … C…
… 2… 2… … 2… 2… …
──────────────────────────────────────────────────────────────────────────────
…
… $ 1… $ … $ … $ … $ 1… $ 1…
…
…
…
… — — — — — 4…
…
…
… 1… — — … 1… 1…
…
…
… $ 1… $ 1… $ … $ … $ 1… $ 1…
…
… 1… % NP 1… % … … % …
…
…
… -… —
…
…
…
… $ 1… $ 1…
…
…
… … % …
…
1 Represents charges to certain legal matters which were outside the normal
course of our operations and recorded in Corporate and support.
2 Business reorganization charges in the Walmart U.S. segment and Corporate and
support relate to strategic efforts to align our global platforms for the six
months ended July 31, 2026. Business reorganization charges for the three and
six months ended July 31, 2025 primarily relate to expenses incurred in
connection with strategic supply chain decisions made in the Sam’s Club U.S.
segment, as well as incremental business reorganization charges recorded in
Corporate and support.
3 Change versus prior year comparable period.
NP - Not provided
“cc” - constant currency
14
Free cash flow
Free cash flow is considered a non-GAAP financial measure. Management believes,
however, that free cash flow, which measures our ability to generate additional
cash from our business operations, is an important financial measure for use in
evaluating the Company's financial performance. Free cash flow should be
considered in addition to, rather than as a substitute for, consolidated net
income as a measure of our performance and net cash provided by operating
activities as a measure of our liquidity.
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. Net cash
provided by operating activities was $19.7 billion for the six months ended July
31, 2026, which represents an increase of $1.4 billion when compared to the same
period in the prior year. The increase was primarily due to an increase in cash
provided by operating income, partially offset by timing of inventory receipts.
Free cash flow for the six months ended July 31, 2026 was $5.5 billion, which
represents a decrease of $1.4 billion when compared to the same period in the
prior year. The decrease in free cash flow was due to an increase of $2.8
billion in capital expenditures to support our omnichannel growth strategy,
partially offset by the increase in net cash provided by operating activities
described above.
Walmart’s definition of free cash flow is limited, in that it does not represent
residual cash flows available for discretionary expenditures, due to the fact
that the measure does not deduct the payments required for debt service and
other contractual obligations or payments made for business acquisitions.
Therefore, we believe it is important to view free cash flow as a measure that
provides supplemental information to our Consolidated Statements of Cash Flows.
Although other companies report their free cash flow, numerous methods may exist
for calculating a company’s free cash flow. As a result, the method used by
Walmart’s management to calculate our free cash flow may differ from the methods
used by other companies to calculate their free cash flow.
The following table sets forth a reconciliation of free cash flow, a non-GAAP
financial measure, to net cash provided by operating activities, which we
believe to be the GAAP financial measure most directly comparable to free cash
flow, as well as information regarding net cash used in investing activities and
net cash used in financing activities.
(Dollars in Six Months Ended
millions) July 31, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net cash provided by
operating $ 19,710 $ 18,352
activities
Payments for property
and equipment -14,181 -11,409
(capital expenditures)
Free cash flow $ 5,529 $ 6,943
Net cash used in $ -14,264 $ -11,199
investing activities1
Net cash used in -4,842 -6,993
financing activities
1 "Net cash used in investing activities" includes payments for property and
equipment, which is also included in our computation of free cash flow.
15
Adjusted EPS
Adjusted diluted earnings per share attributable to Walmart (adjusted EPS) is
considered a non-GAAP financial measure under the SEC’s rules because it
excludes certain amounts included in the diluted earnings per share attributable
to Walmart calculated in accordance with GAAP (EPS), the most directly
comparable financial measure calculated in accordance with GAAP. Management
believes that adjusted EPS is a meaningful measure to share with investors
because it best allows comparison of the performance with that of the comparable
period. In addition, adjusted EPS affords investors a view of what management
considers Walmart’s core earnings performance and the ability to make a more
informed assessment of such core earnings performance with that of the prior
year.
We adjust for the unrealized and realized gains and losses on our equity and
other investments each quarter because although the investments are strategic
decisions for our retail operations, management’s measurement of each strategy
is primarily focused on the operational results rather than the fair value of
such investments. Additionally, management does not forecast changes in the fair
value of its equity and other investments. Accordingly, management adjusts EPS
each quarter for the unrealized and realized gains and losses related to those
investments.
Tax impacts are calculated based on the nature of the item, including any
realizable deductions, and statutory rates in effect for relevant jurisdictions.
NCI impacts are based on the ownership percentages of our noncontrolling
interests, where applicable.
We have calculated adjusted EPS for the three and six months ended July 31, 2026
by adjusting EPS for the following:
1. unrealized and realized gains and losses on our equity and other investments;
and
2. certain tax matter related to changes in unrecognized tax benefits.
Three Months
Ended July
31, 20261
──────────────────────────────────────────────────────────────────────────────
Diluted
earnings per
share:
Reported EPS $0.80
Adjustments: Pre-Tax Impact Tax Impact2 NCI Impact Net Impact
Unrealized and
realized
(gains) and
losses on $0.15 $(0.03) $— $0.12
equity and
other
investments
Certain tax -0.06 -0.05 — -0.11
matter3
Net $0.01
adjustments
Adjusted EPS $0.81
Six Months
Ended July
31, 20261
──────────────────────────────────────────────────────────────────────────────
Diluted
earnings per
share:
Reported EPS $1.46
Adjustments: Pre-Tax Impact Tax Impact2 NCI Impact Net Impact
Unrealized and
realized
(gains) and
losses on $0.12 $(0.02) $— $0.10
equity and
other
investments
Certain tax -0.06 -0.05 — -0.11
matter3
Business
reorganization 0.02 -0.01 — 0.01
charges
Net $—
adjustments
Adjusted EPS $1.46
1 Quarterly adjustments or adjusted EPS may not sum to YTD adjustments or YTD
adjusted EPS due to rounding. Additionally, the individual components in the
tables above may include immaterial rounding.
2 The reported effective tax rate was 18.5% and 20.7% for the three and six
months ended July 31, 2026, respectively. Adjusted for the above items, the
effective tax rate was 24.8% and 23.9% for the three and six months ended July
31, 2026.
3 Impact includes benefit recorded in provision for income taxes as well as
interest, net. For the quarter ended July 31, 2026, interest, net was $0.2
billion. Excluding the interest impact of this matter, adjusted interest, net
was $0.6 billion.
16
As previously disclosed in our second quarter ended July 31, 2025 press release,
we have calculated adjusted EPS for the three and six months ended July 31, 2025
for the following:
1. unrealized and realized gains and losses on our equity and other investments;
2. charges related to certain legal matters which were outside the normal course
of our operations and recorded in Corporate and support; and
3. business reorganization charges, primarily related to expenses incurred in
connection with strategic supply chain decisions made in the Sam’s Club U.S.
segment, as well as incremental business reorganization charges recorded in
Corporate and support.
Three Months
Ended July
31, 20251
──────────────────────────────────────────────────────────────────────────────
Diluted
earnings per
share:
Reported EPS $0.88
Adjustments: Pre-Tax Impact Tax Impact2 NCI Impact Net Impact
Unrealized and
realized
(gains) and
losses on $(0.33) $0.07 $— $(0.26)
equity and
other
investments
Certain legal 0.06 -0.01 — 0.05
matters
Business
reorganization 0.02 -0.01 — 0.01
charges
Net $(0.20)
adjustments
Adjusted EPS $0.68
Six Months
Ended July
31, 20251
──────────────────────────────────────────────────────────────────────────────
Diluted
earnings per
share:
Reported EPS $1.43
Adjustments: Pre-Tax Impact Tax Impact2 NCI Impact Net Impact
Unrealized and
realized
(gains) and
losses on $(0.26) $0.06 $— $(0.20)
equity and
other
investments
Certain legal 0.06 -0.01 — 0.05
matters
Business
reorganization 0.02 -0.01 — 0.01
charges
Net $(0.14)
adjustments
Adjusted EPS $1.29
1 Quarterly adjustments or adjusted EPS may not sum to YTD adjustments or YTD
adjusted EPS due to rounding. Additionally, the individual components in the
tables above may include immaterial rounding.
2 The reported effective tax rate was 23.3% and 23.0% for the three and six
months ended July 31, 2025, respectively. Adjusted for the above item, the
effective tax rate was 24.3% and 23.6% for the three and six months ended July
31, 2025.
17
Return on investment
We include return on assets ("ROA") and return on investment (“ROI”) as metrics
to assess our return on capital. ROA is the most directly comparable measure
based on our financial statements presented in accordance with GAAP, while ROI
is considered a non-GAAP financial measure. Management believes ROI is a
meaningful metric to share with investors because it helps investors assess how
effectively Walmart is deploying its assets. Trends in ROI can fluctuate over
time as management balances long-term strategic initiatives with possible short-
term impacts.
Our calculation of ROI is considered a non-GAAP financial measure because it
uses financial measures that differ from those used in ROA, the most directly
comparable GAAP financial measure. ROA is consolidated net income for the period
divided by average total assets for the period. We define ROI as operating
income plus interest income, depreciation and amortization, and rent expense for
the trailing 12 months divided by average invested capital during that period.
We consider average invested capital to be the average of our beginning and
ending total assets, plus average accumulated depreciation and amortization,
less average accounts payable and average accrued liabilities for that period.
Although ROI is a standard financial measure, numerous methods exist for
calculating a company's ROI. As a result, the method used by management to
calculate our ROI may differ from the methods used by other companies to
calculate their ROI.
ROA was 8.0 percent and 8.3 percent for the trailing 12 months ended July 31,
2026 and 2025, respectively. The decrease in ROA was primarily due to net
decreases in the fair value of our equity and other investments and an increase
in average total assets resulting from higher purchases of property and
equipment, offset by an increase in operating income. ROI was 15.4 percent and
15.1 percent for the trailing 12 months ended July 31, 2026 and 2025,
respectively. The increase in ROI was primarily due to an increase in operating
income from improved business performance, partially offset by an increase in
average invested capital due to higher purchases of property and equipment.
18
The calculation of ROA and ROI, along with a reconciliation of ROI to the
calculation of ROA, the most comparable GAAP financial measure, is as follows:
CALCULAT…
OF RETURN Trailing
ON ASSETS Twelve
(Dollars Months
in Ended
millions) July 31,
Numerator 2026 2025
──────────────────────────────────────────────────────────────────────────────
Consolid…
net $ 22,499 $ 21,929
income
Denomina…
Average
total 282,376 262,639
assets1
Return on
assets 8.0 % 8.3 %
(ROA)
CALCULAT…
OF RETURN
ON
INVESTME…
Trailing
Twelve
Months
Ended
July 31,
(Dollars
in 2026 2025
millions)
Numerator
Operating $ 32,280 $ 28,988
income
+
Interest 352 442
income
+
Deprecia… 15,094 13,491
and
amortiza…
+ Rent 2,559 2,374
ROI
operating $ 50,285 $ 45,295
income
Denomina…
Average
total $ 282,376 $ 262,639
assets1
'+
Average
accumula… 134,840 124,255
deprecia…
and
amortiza…
'-
Average 62,202 58,401
accounts
payable1
'-
Average 29,448 28,239
accrued
liabilit…
Average
invested $ 325,566 $ 300,254
capital
Return on
investme… 15.4 % 15.1 %
(ROI)
July 31,
Certain
Balance 2026 2025 2024
Sheet
Data
Total $ 293,914 $ 270,837 $ 254,440
assets
Accumula…
deprecia… 141,445 128,234 120,275
and
amortiza…
Accounts 64,318 60,086 56,716
payable
Accrued 30,074 28,821 27,656
liabilit…
1 The average is calculated using the account balance at the end of the current
and prior comparative periods.
19