10-KPeriod: FY2025

Walmart Inc. Annual Report, Year Ended Jan 31, 2025

Filed March 14, 2025For Securities:WMT

Summary

Walmart Inc. reported robust financial performance for the fiscal year ended January 31, 2025, with total revenues reaching $681.0 billion, a 5.1% increase over the previous year. This growth was driven by strong comparable sales across all segments, particularly in the U.S. operations (Walmart U.S. and Sam's Club U.S.), which saw increases of 4.8% and 4.7% respectively, fueled by consistent demand in grocery and health & wellness categories. The company continues its strategic focus on omni-channel integration, technology investments, and expanding its ecosystem of services, including advertising and financial services, aiming to enhance customer convenience and drive margin improvement. While facing some headwinds from macroeconomic factors and ongoing litigation, Walmart's diversified business model, commitment to Everyday Low Prices (EDLP) and Everyday Low Cost (EDLC), and significant free cash flow generation of $12.7 billion underscore its resilience and continued ability to return value to shareholders through dividends and share repurchases.

Financial Highlights

52 data points
Beta

Revenue

$674.54B

24.1% Gross Margin

Net Income

$19.44B

2.9% Net Margin

EPS (Diluted)

$2.41

Total Assets

$260.82B

Cash & Equivalents

$9.04B

Free Cash Flow

$12.66B

Financial Statements
Beta
Revenue$674.54B
Cost of Revenue$511.75B
Gross Profit$162.78B
SG&A Expenses$139.88B
Operating Income$29.35B
Interest Expense$2.25B
Net Income$19.44B
EPS (Basic)$2.42
EPS (Diluted)$2.41
Shares Outstanding (Basic)8.04B
Shares Outstanding (Diluted)8.08B

Key Highlights

  • 1Total revenues increased by 5.1% to $681.0 billion for fiscal year 2025, driven by net sales growth of 5.0% to $674.5 billion.
  • 2Comparable sales in the U.S. showed solid growth, with Walmart U.S. up 4.8% and Sam's Club U.S. up 4.7%, reflecting strength in key categories like grocery and health & wellness.
  • 3Operating income grew to $29.3 billion, a 8.7% increase year-over-year, with operating income as a percentage of net sales improving to 4.4% from 4.2%.
  • 4Free cash flow generation remained strong at $12.7 billion, though slightly down from $15.1 billion in the prior year, impacted by increased capital expenditures supporting strategic investments.
  • 5The company continued its commitment to shareholder returns, with total dividend payments of $6.7 billion and share repurchases totaling $4.5 billion during fiscal year 2025.
  • 6Strategic acquisitions, such as VIZIO Holding Corp., and investments in technology, including AI, are key components of Walmart's ongoing strategy to enhance its omni-channel capabilities and operational efficiency.

Frequently Asked Questions

Walmart demonstrated strong financial performance, with total revenues of $681.0 billion, a 5.1% increase from the prior year. This growth was supported by a 5.0% rise in net sales to $674.5 billion, driven by robust comparable sales across its U.S. segments and international operations. The company also saw an increase in operating income to $29.3 billion and maintained healthy free cash flow of $12.7 billion.

Walmart's U.S. operations remained the primary driver of growth, with Walmart U.S. reporting a 4.7% increase in net sales and a 4.8% comparable sales growth. Sam's Club U.S. also showed positive momentum with a 4.7% increase in net sales and comparable sales growth of 4.7%. The Walmart International segment experienced a 6.3% increase in net sales, despite a negative currency exchange rate impact of $3.2 billion.

Walmart's strategy is centered on making every day easier for busy families by leading on price and increasing convenience. Key priorities include investing in technology (including AI), supply chain automation, new store formats, and omni-channel initiatives like enhanced pickup and delivery services. The company also continues to expand its ecosystem with offerings in advertising, marketplace, and financial services to create mutually reinforcing businesses and improve customer engagement.

Walmart is committed to Everyday Low Cost (EDLC) to support its pricing strategy. For fiscal year 2025, the gross profit rate increased by 40 basis points, driven by efficient pricing, growth in higher-margin businesses, and improved operational efficiencies. Operating expenses as a percentage of net sales saw a modest increase, mainly due to investments in variable pay, marketing, and depreciation. The company aims for operating income leverage, with operating income margin improving to 4.4%.