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SEC filingWalmart delivered another solid year of 4.7% revenue growth driven by comparable sales gains across all segments, though operating margin contracted 13 bps on elevated legal and compensation charges.
For fiscal 2026 (year ended January 31, 2026), Walmart reported total revenues of $713.2B, up 4.7% from $681.0B in fiscal 2025. Net sales were $706.4B (+4.7%), driven by comparable sales growth of 4.3% in Walmart U.S., 2.9% in Sam's Club U.S., and strong international performance. Gross profit rose to $171.0B (+5.1%), with gross margin expanding 8 bps to 24.2%, aided by disciplined inventory management and growth in higher-margin businesses.
Operating income increased 1.6% to $29.8B, but operating margin contracted 13 bps to 4.2% due to $0.9B in higher self-insured liability claims and a $0.7B non-cash charge from modification of PhonePe share-based awards. Net income attributable to Walmart grew to $21.9B (from $19.4B), helped by $2.1B of net investment gains (vs. a $0.8B loss in the prior year). Diluted EPS was $2.73, up from $2.41.
Total assets increased to $284.7B (from $260.8B), driven by capital expenditures of $26.6B and higher inventory. Cash and cash equivalents were $10.7B (vs. $9.0B). Short-term borrowings rose to $6.6B from $3.1B, reflecting increased commercial paper usage. Total long-term debt (including current portion) was $38.2B, up $2.2B due to $4.0B in new issuances and $809M in currency adjustments, partly offset by $2.6B in maturities.
Shareholders' equity grew to $99.6B (from $91.0B) as retained earnings increased $6.5B after dividends and buybacks, partially offset by $8.1B in share repurchases. Walmart's working capital deficit widened to $22.6B from $17.1B, reflecting higher payables and short-term debt.
Operating cash flow was $41.6B, up from $36.4B in the prior year, driven by higher operating income, lower tax payments, and favorable working capital timing. Free cash flow improved to $14.9B from $12.7B despite a $2.9B increase in capital expenditures to $26.6B. The capex-to-sales ratio was 3.8%, and management guided to $25B–$27B for fiscal 2027, with emphasis on technology, supply chain, and customer-facing initiatives.
Walmart returned $8.1B to shareholders through share repurchases and $7.5B in dividends. In February 2026, the Board approved a new $30B share repurchase authorization, replacing the prior program's remaining $4.0B capacity.
Management highlighted continued uncertainty from tariff and trade policies, noting that less than one-third of U.S. sales are imported. The company expects to absorb or pass through cost increases as needed. Gross margin benefited from favorable category mix and supply chain efficiencies. Operating expense pressure came from higher self-insured claims and the PhonePe charge, which are unlikely to recur at the same magnitude. Membership income grew 16% to $4.4B, driven by Walmart+ and Sam's Club Plus adoption.
For fiscal 2027, Walmart projects capital expenditures of $25B–$27B and increased its quarterly dividend by 5.3% to $0.2475 per share. No specific sales or earnings guidance was provided, but the company reiterated its long-term financial priorities: growth, margin improvement, and returns.
Walmart's effective tax rate was 24.4%, up from 23.4% a year ago, primarily due to the nondeductible PhonePe charge and a Luxembourg internal reorganization. The company completed $3.6B in proceeds from disposal of strategic investments (JD.com) in the prior year; fiscal 2026 saw $0.9B in proceeds. Share-based compensation expense totaled $3.6B, including $0.7B from the PhonePe modification. Goodwill remained stable at $28.7B. The company's derivative liabilities stood at $1.3B (fair value) for interest rate and currency hedges.