AI Takeaway
Walmart delivered solid FY2026 results with revenue rising 4.7% to $713.2B and net income surging 12.6% to $21.9B, driven by strong operating cash flow of $41.6B, even as SG&A cost pressures slightly compressed operating margins.
Revenue
$713.16B
++4.73% YoY
EPS (Basic)
$2.74
++13.22% YoY
Operating Income
$29.82B
++1.63% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Walmart grew total revenue by 4.7% year-over-year to $713.2B in FY2026, up from $681.0B in FY2025, reflecting continued strength in consumer traffic and omnichannel execution across its global store and e-commerce footprint.
Source: Source: 10-K Income Statement
Net income rose 12.6% to $21.9B and diluted EPS increased 13.3% to $2.73, significantly outpacing revenue growth, suggesting improved below-the-line efficiencies or favorable tax/non-operating items contributing to bottom-line leverage.
Source: Source: 10-K Income Statement
SG&A expenses grew 5.8% to $147.9B, faster than revenue growth of 4.7%, which contributed to a slight compression in operating margin from 4.31% to 4.18%. Managing labor, technology, and supply chain costs remains a key operational challenge.
Source: Source: 10-K Income Statement & Key Ratios
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Upgrade to unlockWalmart's current ratio stands at 0.79, meaning current liabilities of $107.5B exceed current assets of $84.9B. While large retailers often operate with negative working capital due to supplier payment terms, this metric warrants monitoring, especially as current liabilities grew 11.3% YoY — faster than current assets at 6.8%.
Source: Source: 10-K Balance Sheet & Key Ratios
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Upgrade to unlockReported EPS of $0.74 versus the $0.73 analyst consensus — a +0.9% beat for FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $713.16B | $680.99B | +4.73% |
Cost of Revenue | $535.39B | $511.75B | +4.62% |
Operating Income | $29.82B | $29.35B | +1.63% |
Net Income | $21.89B | $19.44B | +12.64% |
EPS (Basic) | $2.74 | $2.42 | +13.22% |
EPS (Diluted) | $2.73 | $2.41 | +13.28% |
SG&A Expense | $147.94B | $139.88B | +5.76% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $284.67B | $260.82B | +9.14% |
Current Assets | $84.87B | $79.46B | +6.82% |
Current Liabilities | $107.47B | $96.58B | +11.27% |
Stockholders' Equity | $99.62B | $91.01B | +9.45% |
Cash & Equivalents | $10.73B | $9.04B | +18.70% |
Long-Term Debt | $38.17B | $36B | +6.02% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $41.56B | $36.44B | +14.05% |
Investing Cash Flow | $-26.35B | $-21.38B | -23.25% |
Financing Cash Flow | $-13.55B | $-14.82B | +8.56% |
Share Buybacks | $8.09B | $4.49B | +79.97% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 4.2% | 4.3% | -0.13% |
Net Margin | 3.1% | — | — |
ROE | 22.0% | — | — |
ROA | 7.7% | — | — |
Current Ratio | $0.79 | — | — |
Other companies in Consumer Staples Merchandise Retail
Walmart posted strong FY2026 results with revenue of $713.2B (+4.7% YoY) and net income of $21.9B (+12.6% YoY). Diluted EPS came in at $2.73, up 13.3% from $2.41 in FY2025, driven by solid consumer demand and improved bottom-line efficiency.
The key takeaways from Walmart's FY2026 10-K include robust revenue and earnings growth, a 14.1% surge in operating cash flow to $41.6B, and an 80% increase in share buybacks to $8.1B. However, SG&A expenses grew faster than revenue, compressing operating margin slightly from 4.31% to 4.18%.
Walmart's net margin improved to 3.07% in FY2026, with net income growing 12.6% — faster than revenue growth of 4.7% — suggesting better below-the-line performance. However, operating margin dipped slightly from 4.31% to 4.18% due to SG&A expenses rising 5.8%, outpacing revenue growth.
Key risks for Walmart include rising SG&A costs pressuring already thin retail margins, a current ratio below 1.0 (0.79x) indicating short-term liabilities exceed current assets, and intensifying competition from Amazon in e-commerce and discount grocers in its core grocery segment. Long-term debt also rose 6.0% to $38.2B alongside a 23.3% increase in capital expenditures.
Walmart's overall financial health in FY2026 appears solid, with $41.6B in operating cash flow, ROE of 22.0%, and a manageable debt-to-equity ratio of approximately 0.38x. The main area of caution is the current ratio of 0.79x, though this is typical for large retailers that benefit from extended supplier payment terms.