Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
In Q1 FY2027, Walmart delivered 7.3% revenue growth and 18.8% net-income growth, supported by U.S. and international sales momentum and eCommerce growth, although operating-margin compression and higher capital expenditures drove free cash flow to negative $1.946B. Source: 10-Q Item 2 MD&A, pp.20-21
Revenue
$177.75B
+7.33% YoY
EPS (Diluted)
$0.67
+19.64% YoY
Operating Income
$7.49B
+5.02% YoY
Source: SEC XBRL
Walmart (WMT) reported Q1 FY2027 revenue of $177.75B, up 7.3% year over year. Operating margin was 4.2%, down 0.1 points from 4.3% a year earlier. Operating cash flow was $4.74B, down 12.4% year over year. WMT's fiscal Q1 FY2027 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 0.66 | 0.66 | Miss -0.6% |
| Mar 2026 | 0.74 | 0.73 | Beat +0.9% |
| Dec 2025 | 0.62 | 0.61 | Beat +2.2% |
| Sep 2025 | 0.68 | 0.75 | Miss -9.2% |
Adjusted (non-GAAP) EPS of $0.66 versus the $0.66 analyst consensus — a -0.6% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.67.
Compiled by AI from 10-Q Item 2 of this filing
Walmart U.S. calendar comparable sales increased 4.3%, driven by higher transactions and average ticket in grocery and general merchandise; eCommerce contributed approximately 5.2 percentage points to comparable sales, primarily through store-fulfilled delivery. Sam's Club U.S. comparable sales rose 5.9%, including a 2.1-point benefit from fuel, while eCommerce contributed approximately 3.1 points.
Source: 10-Q Item 2 MD&A
Walmart International net sales increased 18.0% to $35.110B. The increase reflected positive comparable sales across international markets, $2.0B of eCommerce growth, and a $2.3B favorable effect from currency exchange-rate fluctuations.
Source: 10-Q Item 2 MD&A
Gross profit rate increased 6 basis points to 24.3%, primarily from merchandise-mix shifts and higher-margin businesses such as advertising. However, operating expenses rose to 21.2% of net sales from 20.8%, reflecting higher depreciation, $0.2B of reorganization charges, global-platform alignment efforts, and higher associate healthcare costs; operating margin consequently declined 8 basis points.
Source: 10-Q Item 2 MD&A
Capital expenditures increased to $6.684B from $4.986B, with $5.863B allocated to U.S. supply chain, customer-facing initiatives, technology, remodels, and new stores/clubs. Operating cash flow declined to $4.738B, primarily due to inventory-receipt timing, and free cash flow moved to negative $1.946B from positive $425M.
Source: 10-Q Item 2 MD&A
Other gains and losses were a net gain of $275M, compared with a $597M net loss in the prior-year period. Management attributed the shift primarily to fair-value changes in equity and other investments driven by movements in the underlying stock prices.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 1A of this filing · 3 high, 2 medium, 0 low
Walmart identifies changes in tariff rates, tariff exemptions, taxes on imports, and trade restrictions as factors that could affect results. Management states that less than one-third of U.S. sales are imported, with significant import sourcing from China, Vietnam, Mexico, India, and Canada; the ultimate timing and amount of potential tariff refunds are uncertain, and no related amounts were recognized in the period.
Source: 10-Q Item 1A; 10-Q Item 2 MD&A
The filing identifies supplier costs, transportation, energy, wage and healthcare costs, labor availability, supply-chain disruptions, and merchandise mix as factors affecting profitability. In Q1 FY2027, higher eCommerce fulfillment costs reduced Sam's Club U.S. gross margin, while higher depreciation, healthcare costs, and reorganization charges contributed to operating-margin pressure.
Source: 10-Q Item 1A; 10-Q Item 2 MD&A
Walmart specifically identifies cybersecurity events and related business disruption, as well as developments and disruptions related to deployment of artificial-intelligence technologies, among its operating risks. These risks are particularly relevant as the company continues investments in technology, eCommerce, automation, and omnichannel operations.
Source: 10-Q Item 1A
The filing identifies potential liabilities, losses, expenses, and costs from legal and regulatory proceedings, including opioid litigation, False Claims Act litigation, the Asda Equal Value Claims indemnification obligation, the Money Transfer Agent Services Matter, driver-platform matters, and antitrust matters. Outcomes and financial effects of these matters remain uncertain.
Source: 10-Q Item 1A; 10-Q Item 2 MD&A
Walmart warns that a downgrade of its commercial-paper or debt ratings could raise future borrowing costs or impair access to capital and commercial-paper markets. This matters as the company increased total outstanding long-term debt to $40.783B as of April 30, 2026 and is funding substantial investment activity.
Source: 10-Q Item 1A; 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 177.75 $B | 165.61 $B | +7.33% |
Cost of Revenue $B | 133.06 $B | 124.30 $B | +7.04% |
Operating Income $B | 7.49 $B | 7.14 $B | +5.02% |
Net Income $B | 5.33 $B | 4.49 $B | +18.79% |
EPS (Basic) $ | 0.67 $ | 0.56 $ | +19.64% |
EPS (Diluted) $ | 0.67 $ | 0.56 $ | +19.64% |
SG&A Expense $B | 37.20 $B | 34.17 $B | +8.86% |
Answers draw on this SEC filing and the data on this page
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