01—Abstract
Summary
Summary of the 10-Q filed December 3, 2025. Cited figures are marked; the original filing is the authoritative source.
Walmart Inc. reported solid financial results for the period ending October 31, 2025.
Total revenues increased by 5.8% year-over-year for the quarter and 4.4% for the nine-month period, reaching $177.8 billiona and $517.5 billion, respectively. This growth was driven by strong comparable sales across both U.S. segments (Walmart U.S. and Sam's Club U.S.) and international markets, supported by increases in average ticket and transactions. The company also saw positive contributions from its e-commerce initiatives, particularly through store-fulfilled pickup and delivery services.
Despite revenue growth, operating income saw a slight decrease of 0.2% for the quarter to $6.7 billionb, while for the nine-month period it decreased by 1.7% to $21.1 billion. This was influenced by increased operating expenses, notably a $0.7 billion charge related to modifications in share-based compensation for its PhonePe subsidiary and higher self-insured general liability claims in the U.S. The net income attributable to Walmart, however, saw a substantial increase, growing by 30.7% for the quarter to $6.1 billion and by 24.2% for the nine months to $17.7 billion.
Diluted earnings per share also increased significantly, reflecting these net income improvements. The company demonstrated strong free cash flow generation of $8.8 billionc for the nine-month period, an increase of $2.6 billion year-over-year, supporting increased capital expenditures and share repurchases.
02—Key points
Key Highlights
- Total revenues increased by 5.8% in Q3 2025 and 4.4% year-to-date, driven by strong comparable sales growth across all segments, including significant e-commerce contributions.
- Walmart U.S. delivered a 5.1% net sales increase for the quarter, with comparable sales up 4.8%, highlighting continued strength in customer engagement and omnichannel offerings.
- Consolidated net income attributable to Walmart surged by 30.7% to $6.1 billion for the quarter and by 24.2% to $17.7 billion for the nine months, leading to a substantial rise in diluted EPS.
- Operating income experienced a slight dip of 0.2% for the quarter to $6.7 billion, primarily due to increased operating expenses, including a significant charge related to the PhonePe subsidiary's share-based compensation.
- Free cash flow generation was robust, reaching $8.8 billion for the nine months, a $2.6 billion increase year-over-year, reflecting improved operating cash flow and disciplined capital allocation.
- The company increased its share repurchases significantly, spending $7.0 billion in the nine-month period compared to $3.0 billion in the prior year, signaling confidence and a return of capital to shareholders.
- Walmart International segment's net sales grew by 10.8% in the quarter, aided by sales timing shifts and strong comparable sales, though operating income declined due to increased operating expenses and mix shifts.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Walmart Inc. kept $0.03.
- Revenue$177.77B100.0%
- Cost of revenue−$134.71B75.8%
- Gross profit$43.06B24.2%
- Operating costs−$36.37B20.5%
- Operating income$6.70B3.8%
- Interest, other & tax−$553.0M0.3%
- Net income$6.14B3.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed December 3, 2025Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $177.77B$168.00B | +5.8% |
| Cost of Revenue | $134.71B$127.34B | +5.8% |
| Gross Profit | $43.06B$40.66B | +5.9% |
| SG&A Expenses | $38.09B$35.54B | +7.2% |
| Operating Income | $6.70B$6.71B | −0.2% |
| Interest Expense | $563.00M$496.00M | +13.5% |
| Net Income | $6.14B$4.58B | +34.2% |
| EPS (Basic) | $0.77$0.57 | +35.1% |
| EPS (Diluted) | $0.77$0.57 | +35.1% |
| Shares Outstanding (Basic) | 7.97B8.04B | −0.8% |
| Shares Outstanding (Diluted) | 8.01B8.08B | −0.9% |
05—Questions
Frequently Asked Questions
What is the overall financial performance trend for Walmart in this reporting period?
Walmart demonstrated strong revenue growth, with total revenues increasing by 5.8% in the third quarter and 4.4% year-to-date. While operating income saw a slight decrease due to increased expenses (including a notable charge related to its PhonePe subsidiary), net income attributable to Walmart surged significantly, leading to a substantial improvement in diluted earnings per share. The company also generated a higher free cash flow, supporting increased investments and share repurchases.
How did the different segments of Walmart perform?
Walmart U.S. showed robust performance with a 5.1% increase in net sales for the quarter, driven by strong comparable sales and e-commerce growth. Sam's Club U.S. also saw positive sales growth. The Walmart International segment experienced an impressive 10.8% net sales increase in the quarter, benefiting from sales timing shifts and comparable sales growth, though operating income was impacted by higher expenses and mix shifts.
What are the key drivers behind the change in operating income?
The slight decrease in operating income for the quarter was primarily driven by an increase in operating expenses. This included a $0.7 billion charge related to the modification of share-based compensation arrangements for its PhonePe subsidiary and higher self-insured general liability claims expenses in the U.S. These factors offset the positive impact of revenue growth and gross profit rate improvements.
How is Walmart managing its capital and returning value to shareholders?
Walmart generated a substantial $8.8 billion in free cash flow during the first nine months of the fiscal year, a significant increase from the prior year. This strong cash generation supported increased capital expenditures and a notable rise in share repurchases, with $7.0 billion spent on buybacks in the nine-month period compared to $3.0 billion in the prior year. The company also continued its practice of returning capital through dividends.
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