Walmart's Q2 Earnings Soar 56% on Strong Sales, Strategic Gains

TL;DR

**Walmart's crushing it, with net income up 56% and smart financial plays; buy the dip if you see one, this retail giant is on a roll.**

AI Summary

Walmart Inc. reported robust financial performance for the three and six months ended July 31, 2025. Total revenues for the three months increased by 4.7% to $177.402 billion from $169.335 billion in the prior year, driven by a 4.8% rise in net sales to $175.750 billion. Consolidated net income attributable to Walmart surged by 56.1% to $7.026 billion, or $0.88 per diluted share, compared to $4.501 billion, or $0.56 per diluted share, in the same quarter last year. For the six-month period, total revenues grew to $343.011 billion from $330.843 billion, and consolidated net income attributable to Walmart increased by 19.9% to $11.513 billion, or $1.43 per diluted share, from $9.605 billion, or $1.19 per diluted share. A significant factor in the improved net income was a substantial 'Other (gains) and losses' of $2.708 billion for the three months, a stark contrast to a $1.162 billion loss in the prior year. The company also issued $3.983 billion in new long-term debt during the six months ended July 31, 2025, for general corporate purposes, and repurchased $6.200 billion of Company stock. Cash and cash equivalents increased to $9.431 billion from $8.811 billion year-over-year.

Why It Matters

Walmart's impressive Q2 performance, particularly the 56.1% jump in net income, signals strong consumer spending and effective operational management in a competitive retail landscape. For investors, this demonstrates Walmart's ability to drive profitability and return capital through significant share repurchases of $6.200 billion. Employees benefit from a stable and growing company, while customers continue to find value, reinforcing Walmart's market dominance against rivals like Amazon and Target. The substantial 'Other (gains) and losses' shift from a loss to a gain of $2.708 billion highlights successful strategic financial maneuvers, potentially from investment revaluations or asset disposals, which could be a key differentiator in future performance.

Risk Assessment

Risk Level: low — The risk level is low due to strong financial performance, including a 56.1% increase in consolidated net income attributable to Walmart for the three months ended July 31, 2025, and a 19.9% increase for the six months. The company also maintains substantial liquidity with $9.431 billion in cash and cash equivalents and $15.0 billion in undrawn committed lines of credit, indicating robust financial health and flexibility.

Analyst Insight

Investors should consider Walmart's strong earnings growth and effective capital allocation, including significant share repurchases, as positive indicators. The substantial 'Other (gains) and losses' contribution warrants further investigation for sustainability, but overall, the filing suggests continued operational strength and shareholder value creation.

Financial Highlights

revenue

$177.402B

operating Margin

4.11%

net Income

$7.026B

eps

$0.88

gross Margin

75.0%

cash Position

$9.431B

revenue Growth

+4.7%

Revenue Breakdown

Key Numbers

• $177.402B — Total Revenues (Increased 4.7% for the three months ended July 31, 2025, from $169.335 billion in 2024.)
• $7.026B — Consolidated Net Income Attributable to Walmart (Increased 56.1% for the three months ended July 31, 2025, from $4.501 billion in 2024.)
• $0.88 — Diluted Net Income Per Common Share (Increased from $0.56 in the prior year for the three months ended July 31, 2025.)
• $2.708B — Other (Gains) and Losses (Significant gain for the three months ended July 31, 2025, compared to a $1.162 billion loss in 2024.)
• $11.513B — Consolidated Net Income Attributable to Walmart (Six Months) (Increased 19.9% for the six months ended July 31, 2025, from $9.605 billion in 2024.)
• $6.200B — Purchase of Company Stock (Amount of stock repurchased during the six months ended July 31, 2025, demonstrating capital return to shareholders.)
• $9.431B — Cash and Cash Equivalents (As of July 31, 2025, indicating strong liquidity.)
• $15.0B — Committed Lines of Credit (Undrawn as of July 31, 2025, providing financial flexibility.)
• 7,972,851,122 — Common Stock Outstanding (As of August 27, 2025, relevant for per-share calculations.)
• $3.983B — Proceeds from Issuance of Long-Term Debt (New debt issued during the six months ended July 31, 2025, for general corporate purposes.)

Key Players & Entities

• Walmart Inc. (company) — registrant of the 10-Q filing
• New York Stock Exchange (regulator) — exchange where WMT common stock and notes are registered
• $177.402 billion (dollar_amount) — Total revenues for the three months ended July 31, 2025
• $7.026 billion (dollar_amount) — Consolidated net income attributable to Walmart for the three months ended July 31, 2025
• $0.88 (dollar_amount) — Diluted net income per common share attributable to Walmart for the three months ended July 31, 2025
• $2.708 billion (dollar_amount) — Other gains for the three months ended July 31, 2025
• $3.983 billion (dollar_amount) — Proceeds from issuance of long-term debt during the six months ended July 31, 2025
• $6.200 billion (dollar_amount) — Purchase of Company stock during the six months ended July 31, 2025
• FASB (regulator) — Financial Accounting Standards Board, issuer of ASUs
• Bloomberg (company) — publisher of the analysis

FAQ

Risk Factors

• Economic Downturn and Consumer Spending [medium — market]: Walmart's performance is sensitive to changes in consumer spending, which can be affected by economic conditions. A significant economic downturn could lead to reduced demand for discretionary items, impacting sales. For the three months ended July 31, 2025, total revenues were $177.402 billion, a 4.7% increase, indicating resilience but also the scale of potential impact from economic shifts.
• Supply Chain Disruptions [medium — operational]: Disruptions in the global supply chain can affect inventory availability and costs. While Walmart reported increased net sales of $175.750 billion for the three months ended July 31, 2025, ongoing supply chain challenges could pose a risk. The company's scale and diversified sourcing help mitigate this, but significant disruptions remain a concern.
• Regulatory and Legal Compliance [medium — regulatory]: Walmart operates in a complex regulatory environment globally. Changes in laws and regulations related to labor, trade, environmental standards, and data privacy could increase compliance costs and impact operations. The company's extensive operations mean a broad exposure to various regulatory frameworks.
• Interest Rate Fluctuations [low — financial]: Changes in interest rates can affect the cost of Walmart's debt and its financing activities. The company issued $3.983 billion in new long-term debt during the six months ended July 31, 2025. Higher interest rates would increase interest expense, impacting profitability. Interest expense on debt was $651 million for the three months ended July 31, 2025.
• Competition and Market Saturation [medium — operational]: The retail industry is highly competitive, with pressure from traditional retailers, e-commerce giants, and discount stores. Maintaining market share and profitability requires continuous innovation and efficient operations. Walmart's revenue growth of 4.7% for the quarter shows competitive strength, but the landscape remains challenging.
• Foreign Currency Exchange Rate Fluctuations [low — financial]: As a global company, Walmart is exposed to foreign currency exchange rate fluctuations, which can impact reported revenues and profits from international operations. Other comprehensive income (loss) related to currency translation was $774 million for the three months ended July 31, 2025, showing this impact.

Industry Context

Walmart operates in the highly competitive retail sector, facing pressure from traditional brick-and-mortar rivals and rapidly growing e-commerce players. Key industry trends include the increasing importance of omnichannel strategies, investments in technology for supply chain efficiency and customer experience, and evolving consumer preferences towards value and convenience. The company's scale provides significant advantages in purchasing power and logistics.

Regulatory Implications

Walmart faces ongoing scrutiny regarding labor practices, environmental impact, and data privacy across its global operations. Compliance with evolving regulations in these areas is critical and can lead to increased operational costs or potential legal challenges. The company's size makes it a frequent subject of regulatory attention.

What Investors Should Do

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Key Dates

• 2025-07-31: End of Third Quarter and Six-Month Period — Reporting period for the financial results discussed, showing revenue growth and significant net income increase.
• 2025-08-27: Common Stock Outstanding Date — Provides the basis for per-share calculations, with 7,972,851,122 shares outstanding.

Glossary

Consolidated net income attributable to Walmart

The portion of the company's net income that belongs to Walmart's shareholders after accounting for noncontrolling interests. (Key measure of profitability for Walmart's owners, showing a significant increase of 56.1% to $7.026 billion for the quarter.)

Other (gains) and losses

Includes various non-operating income or expense items, such as gains or losses from asset sales, investments, or other unusual events. (A significant positive swing from a $1.162 billion loss in the prior year to a $2.708 billion gain significantly boosted net income for the quarter.)

Membership and other income

Revenue generated from sources other than direct sales, such as membership fees (e.g., Walmart+), advertising, or other services. (Represents a smaller but growing portion of total revenue, increasing by 5.4% to $1.652 billion for the quarter.)

Noncontrolling interest

The portion of equity in a subsidiary that is not attributable to the parent company (Walmart). (Impacts consolidated net income and comprehensive income, with a reduction of $125 million for the quarter.)

Comprehensive income

Includes net income plus all other gains and losses that are not recognized in net income, such as unrealized gains or losses on certain investments and currency translation adjustments. (Shows the total change in equity from non-owner sources, with comprehensive income attributable to Walmart increasing to $7.589 billion for the quarter.)

Year-Over-Year Comparison

Walmart demonstrated strong top-line growth, with total revenues increasing by 4.7% to $177.402 billion for the three months ended July 31, 2025, compared to the prior year. Net income attributable to Walmart saw a substantial surge of 56.1% to $7.026 billion, largely due to a significant positive swing in 'Other (gains) and losses' from a loss to a gain. While cash and cash equivalents improved to $9.431 billion, operating income experienced a slight decline, suggesting increased cost pressures that offset some of the revenue gains.

Key Financial Figures

• $0.10 — ich registered Common Stock, par value $0.10 per share WMT New York Stock Exchange

Filing Documents

• wmt-20250731.htm (10-Q) — 1451KB
• wmtexhibit311fy26q2.htm (EX-31.1) — 8KB
• wmtexhibit312fy26q2.htm (EX-31.2) — 8KB
• wmtexhibit321fy26q2.htm (EX-32.1) — 4KB
• wmtexhibit322fy26q2.htm (EX-32.2) — 4KB
• wmtexhibit991fy26q2.htm (EX-99.1) — 4KB
• 0000104169-25-000137.txt ( ) — 6290KB
• wmt-20250731.xsd (EX-101.SCH) — 35KB
• wmt-20250731_cal.xml (EX-101.CAL) — 59KB
• wmt-20250731_def.xml (EX-101.DEF) — 153KB
• wmt-20250731_lab.xml (EX-101.LAB) — 473KB
• wmt-20250731_pre.xml (EX-101.PRE) — 324KB
• wmt-20250731_htm.xml (XML) — 975KB

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements Condensed Consolidated Statements of Income 3 Condensed Consolidated Statements of Comprehensive Income 4 Condensed Consolidated Balance Sheets 5 Condensed Consolidated Statements of Shareholders' Equity 6 Condensed Consolidated Statements of Cash Flows 7 Notes to Condensed Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 18

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 28

Controls and Procedures

Item 4. Controls and Procedures 29

Other Information

Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 30

Risk Factors

Item 1A. Risk Factors 30

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31

Other Information

Item 5. Other Information 31

Exhibits

Item 6. Exhibits 35

Signatures

Signatures 36 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Walmart Inc. Condensed Consolidated Statements of Income (Unaudited) Three Months Ended July 31, Six Months Ended July 31, (Amounts in millions, except per share data) 2025 2024 2025 2024 Revenues: Net sales $ 175,750 $ 167,767 $ 339,731 $ 327,705 Membership and other income 1,652 1,568 3,280 3,138 Total revenues 177,402 169,335 343,011 330,843 Costs and expenses: Cost of sales 132,771 126,810 257,074 248,241 Operating, selling, general and administrative expenses 37,345 34,585 71,516 67,821 Operating income 7,286 7,940 14,421 14,781 Interest: Debt 651 557 1,170 1,154 Finance lease 118 122 236 239 Interest income ( 94 ) ( 114 ) ( 187 ) ( 228 ) Interest, net 675 565 1,219 1,165 Other (gains) and losses ( 2,708 ) 1,162 ( 2,111 ) 368 Income before income taxes 9,319 6,213 15,313 13,248 Provision for income taxes 2,168 1,502 3,523 3,230 Consolidated net income 7,151 4,711 11,790 10,018 Consolidated net income attributable to noncontrolling interest ( 125 ) ( 210 ) ( 277 ) ( 413 ) Consolidated net income attributable to Walmart $ 7,026 $ 4,501 $ 11,513 $ 9,605 Net income per common share: Basic net income per common share attributable to Walmart $ 0.88 $ 0.56 $ 1.44 $ 1.19 Diluted net income per common share attributable to Walmart 0.88 0.56 1.43 1.19 Weighted-average common shares outstanding: Basic 7,978 8,044 7,994 8,048 Diluted 8,016 8,081 8,033 8,082 Dividends declared per common share $ — $ — $ 0.94 $ 0.83 See accompanying notes. 3 Table of Contents Walmart Inc. Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended July 31, Six Months Ended July 31, (Amounts in millions) 2025 2024 2025 2024 Consolidated net income $ 7,151 $ 4,711 $ 11,790 $ 10,018 Consolidated net income attributable to noncontrolling interest ( 125 ) ( 210 ) ( 277 ) ( 413 ) Consolidated net income attributable to Walmart 7,026 4,501 11,513 9,605 Other comprehensive income (loss)

Legal Proceedings

Legal Proceedings The Company is involved in a number of legal proceedings and certain regulatory matters. The Company records a liability for those legal proceedings and regulatory matters when it determines it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company also discloses when it is reasonably possible that a material loss may be incurred. From time to time, the Company may enter into discussions regarding settlement of these matters, and may enter into settlement agreements, if it believes settlement is in the best interest of the Company and its shareholders. Unless stated otherwise, the matters discussed below, if decided adversely to or settled by the Company, individually or in the aggregate, may result in a liability material to the Company's financial position, results of operations or cash flows. The 11 Table of Contents Company can provide no assurance as to the scope and outcome of these matters and cannot reasonably estimate any loss or range of loss, beyond the amounts accrued, if any, that may arise from these matters. Settlement of Certain Opioid-Related Matters The Company entered into settlement agreements with all 50 states, the District of Columbia, Puerto Rico, three U.S. territories, and the vast majority of eligible political subdivisions and federally recognized Native American tribes to resolve opioid-related claims against the Company. In fiscal year 2023, the Company accrueda liability of approximately $ 3.3 billion for these settlements, which included amounts for remediation of alleged harms, attorneys' fees, and costs. As of January 31, 2025, all of the accrued liability had been paid. Remaining federally recognized Native American tribes haveuntil February 24, 2026 to join the settlement, but the Company will owe no additional funds for any that join. Ongoing Opioid-Related Litigation The Company will continue to vigorously defend against any opioid-related matter