Walmart Inc. (WMT) — Fundamental Analysis

Based on SEC 10-K and 10-Q filings. All figures in USD unless noted.

1. Snapshot & Big Picture

Walmart is the world's largest retailer by revenue, operating a vast network of supercenters, discount stores, Sam's Club warehouses, and a rapidly growing e-commerce and advertising business. Its scale gives it unmatched purchasing power, and in recent years the company has been investing heavily in supply chain automation, private label brands, and its high-margin Walmart Connect advertising platform. The fiscal year ends January 31, so "FY2026" covers February 2025 through January 2026.

Note: Gross margin and debt-to-equity figures were not available in the provided filing data and are not estimated here.

2. Latest Quarter Snapshot

The most current data available comes from the Q1 FY2027 10-Q filed May 29, 2026, covering the quarter ended April 30, 2026. This is more recent than the annual figures above and gives a timely read on Walmart's momentum heading into its new fiscal year.

At an annualized revenue run rate of roughly $711B (4 × $177.8B), Walmart appears on pace to sustain or slightly exceed its FY2026 top line. The 3.00% net margin in Q1 FY2027 is actually the strongest single-quarter net margin in this dataset, suggesting continued improvement in profitability mix — likely driven by higher-margin advertising and membership revenue layered on top of the core retail business.

3. Profitability — Multi-Year Trend

Walmart's margins are thin by design — the company competes primarily on price — but the trend line over the past three fiscal years is encouraging. Operating margin dipped slightly in FY2026 versus FY2025, but net margin has expanded consistently, rising from 2.39% in FY2024 to 3.07% in FY2026. This divergence between operating and net margin trends could reflect favorable below-the-line items such as investment income or lower effective tax rates and warrants monitoring in future filings.

EBITDA has grown from $38.9B to $44.0B over three years — a cumulative increase of roughly 13.2% — outpacing revenue growth of about 10.0% over the same span. That means Walmart is converting a growing share of each incremental revenue dollar into operating cash flow, a positive sign of operational leverage even within a low-margin retail model.

4. Financial Health

Walmart's current ratio has hovered consistently below 1.0 across all periods in this dataset — ranging from 0.83 in FY2024 down to 0.77 in the most recent quarter. A current ratio below 1.0 means current liabilities exceed current assets, which would be a red flag for most companies. For Walmart, however, this is a long-standing structural feature of its business model: the company collects cash from customers almost immediately (retail sales are predominantly cash or near-cash transactions) while paying suppliers on extended credit terms. This negative working capital cycle is actually a source of financing strength, not weakness, for a retailer of Walmart's scale and creditworthiness.

Debt-to-equity figures were not available in the provided filing data, so a complete picture of leverage cannot be drawn from this dataset alone. Investors seeking a full leverage analysis should consult the balance sheet sections of the linked SEC filings directly.

5. Growth

Walmart's revenue growth has been steady and consistent, which is remarkable for a company already operating at over $700 billion in annual sales. Year-over-year revenue growth came in at approximately 5.1% from FY2024 to FY2025 and 4.7% from FY2025 to FY2026. For a retailer of this size, adding roughly $32–$33 billion in incremental revenue per year represents enormous absolute dollar growth.

EBITDA growth of 8.9% in FY2025 outpaced revenue meaningfully, though it moderated to 4.0% in FY2026 — roughly in line with revenue growth. The Q1 FY2027 EBITDA of $11.3B, if sustained, would imply a full-year EBITDA of roughly $45.3B, representing modest continued growth from the FY2026 base of $44.0B.

Plain English Summary

Walmart is a financial machine built on scale. Its revenues have grown every year in this dataset, crossing $713 billion in FY2026, and the business is steadily — if slowly — becoming more profitable. Net margins have expanded from 2.39% to over 3% in just three years, which is a meaningful improvement for a company that competes primarily on price. The most recent quarterly data (Q1 FY2027, ended April 2026) shows the strongest net margin of any period in this dataset at 3.00%, suggesting the trend is holding. The current ratio sitting below 1.0 looks alarming at first glance, but for Walmart this is entirely normal — it actually reflects the company's power over its suppliers, who extend generous payment terms to keep shelf space at the world's largest retailer. Gross margin and debt-to-equity data were not available in the filings provided, which limits how deeply we can assess cost structure and leverage here. Overall, the picture painted by the available data is one of a mature, dominant retailer that is quietly improving its profitability profile while continuing to grow its already enormous top line.

Source Filings

• 10-Q filed May 29, 2026 — Quarter ended April 30, 2026
• 10-K filed March 13, 2026 — Fiscal Year ended January 31, 2026