AI Takeaway
Walmart delivered strong Q2 FY2026 results with revenue rising 7.3% YoY to $177.8B and net income surging 18.8% to $5.3B, though operating cash flow declined 12.4% amid elevated capital investment.
Revenue
$177.75B
++7.33% YoY
EPS (Basic)
$0.67
++19.64% YoY
Operating Income
$7.49B
++5.02% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 7.3% YoY to $177.8B in Q2 FY2026 (vs. $165.6B in Q2 FY2025), reflecting continued strength across Walmart's retail and e-commerce segments. This broad-based growth demonstrates the company's ability to attract value-seeking consumers in a still-uncertain macroeconomic environment.
Source: Source: 10-Q Income Statement
Net income jumped 18.8% YoY to $5.33B (vs. $4.49B), with diluted EPS rising 19.6% to $0.67. The outsized earnings growth relative to revenue suggests improved operational leverage and/or favorable below-the-line items such as reduced interest expense or improved equity income from international operations.
Source: Source: 10-Q Income Statement
Selling, General & Administrative (SG&A) expenses rose 8.9% YoY to $37.2B, outpacing revenue growth of 7.3%. This faster growth in operating costs contributed to a slight compression in operating margin from 4.31% to 4.22%, signaling ongoing investment in workforce, technology, and fulfillment infrastructure.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockWalmart's current ratio of 0.77 indicates current liabilities ($114.6B) significantly exceed current assets ($88.4B). While this is typical for large-scale retailers that operate with negative working capital, any disruption to operating cash flows or credit markets could tighten near-term liquidity. The 11.3% YoY increase in current liabilities amplifies this concern.
Source: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.66 versus the $0.66 analyst consensus — a -0.6% miss for Q1 FY2027.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $177.75B | $165.61B | +7.33% |
Cost of Revenue | $133.06B | $124.3B | +7.04% |
Operating Income | $7.49B | $7.13B | +5.02% |
Net Income | $5.33B | $4.49B | +18.79% |
EPS (Basic) | $0.67 | $0.56 | +19.64% |
EPS (Diluted) | $0.67 | $0.56 | +19.64% |
SG&A Expense | $37.2B | $34.17B | +8.86% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $289.61B | $262.37B | +10.38% |
Current Assets | $88.39B | $80.25B | +10.14% |
Current Liabilities | $114.58B | $102.92B | +11.33% |
Stockholders' Equity | $94.33B | $83.79B | +12.58% |
Cash & Equivalents | $10.73B | $9.31B | +15.23% |
Long-Term Debt | $36.89B | $36.52B | +1.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $4.74B | $5.41B | -12.44% |
Investing Cash Flow | $-6.74B | $-5.09B | -32.28% |
Financing Cash Flow | $2.33B | $8M | +29000.00% |
Share Buybacks | $2.08B | $4.55B | -54.34% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 4.2% | 4.3% | -0.09% |
Net Margin | 3.0% | — | — |
ROE | 5.7% | — | — |
ROA | 1.8% | — | — |
Current Ratio | $0.771 | — | — |
Other companies in Consumer Staples Merchandise Retail
Walmart reported strong Q2 FY2026 results with revenue of $177.8B (up 7.3% YoY) and net income of $5.33B (up 18.8% YoY). Diluted EPS came in at $0.67, a 19.6% increase from $0.56 in the same quarter last year.
The key takeaways are robust top-line growth of 7.3%, strong net income expansion of 18.8%, and a slight operating margin compression from 4.31% to 4.22% due to SG&A growing faster than revenue. Free cash flow was negative as Walmart accelerated capital investment, with investing outflows rising 32.3% YoY to $6.74B.
Yes, Walmart's revenue grew 7.3% YoY to $177.8B in Q2 FY2026, up from $165.6B in Q2 FY2025. This growth reflects continued consumer traffic and market share gains across Walmart's U.S. and international operations.
Based on the financial data, key risks include SG&A cost inflation outpacing revenue growth (8.9% vs. 7.3%), negative free cash flow due to a heavy CapEx cycle ($6.74B in investing outflows), and a current ratio of 0.77 indicating current liabilities exceed current assets by over $26B. These factors could pressure margins and liquidity if revenue growth moderates.
Walmart's financial health is broadly solid, with total assets of $289.6B, stockholders' equity of $94.3B, and long-term debt of $36.9B implying a conservative debt-to-equity ratio of ~0.39x. However, the current ratio of 0.77 and negative free cash flow in the quarter are areas to watch, as the company is in an active investment cycle that is temporarily pressuring cash generation.