Executive Summary
Walmart reported solid top-line momentum for QQ2 2025, with revenue of $169.335 billion, up 4.77% year over year and 4.85% quarter over quarter. The company delivered a gross margin of 25.11% and an operating margin of 4.69%, translating to operating income of $7.94 billion and net income of $4.50 billion (EPS $0.56). Although revenue advanced, net income and EPS declined year over year by 42.96% and 42.86% respectively, reflecting higher costs, mix effects, and potentially one-time items in the prior year base. Free cash flow reached $6.28 billion, supported by a robust operating cash flow of $12.11 billion and disciplined capital allocation (dividends and modest share repurchases) as Walmart continues to balance growth investments with shareholder returns.
From a balance sheet perspective, Walmart maintains a strong asset base and ample liquidity, with total assets of $254.44 billion and total stockholders’ equity of $84.42 billion. Cash and cash equivalents stood at $8.81 billion, while total debt was $61.31 billion and net debt $52.49 billion. The current ratio sits at 0.80, reflecting the retailer’s working-capital-intensive model (not unusual for a mass-merchandiser with large inventory). Inventory stood at $55.61 billion, underscoring the ongoing investment in assortment and supply chain resilience. Cash flow generation remains a strength, supporting ongoing investments in e‑commerce, price leadership, and the Walmart+ loyalty program, alongside returns to shareholders.
Looking ahead, management did not provide explicit forward guidance in the data available. Nevertheless, Walmart’s scale, multichannel capabilities, and ongoing capital allocation favor a constructive long-term outlook. Near-term vigilance should focus on margin durability in a competitive environment, cost discipline across the value chain, and continued investment in omnichannel growth and international expansion to sustain top-line momentum.
Key Performance Indicators
QoQ: -11.81% | YoY:-42.96%
QoQ: -11.11% | YoY:-42.86%
Key Insights
Revenue: $169.335B, YoY +4.77%, QoQ +4.85%; Gross Profit: $42.525B, Gross Margin 25.11%, YoY +6.90%, QoQ +6.11%; Operating Income: $7.94B, Operating Margin 4.69%, YoY +8.53%, QoQ +16.06%; Net Income: $4.501B, Net Margin 2.66%, YoY -42.96%, QoQ -11.81%; EPS: $0.56, Diluted EPS $0.56, YoY -42.86%, QoQ -11.11%; EBITDA: $11.151B; EBITDARatio: 6.59%; Net Cash Provided by Operating Activities: $12.108B; Free Cash Flow: $6.278B; CapEx: $5.831B; CFO/Revenue efficiency: Operating cash flow margin ~7.14%;...
Financial Highlights
Revenue: $169.335B, YoY +4.77%, QoQ +4.85%; Gross Profit: $42.525B, Gross Margin 25.11%, YoY +6.90%, QoQ +6.11%; Operating Income: $7.94B, Operating Margin 4.69%, YoY +8.53%, QoQ +16.06%; Net Income: $4.501B, Net Margin 2.66%, YoY -42.96%, QoQ -11.81%; EPS: $0.56, Diluted EPS $0.56, YoY -42.86%, QoQ -11.11%; EBITDA: $11.151B; EBITDARatio: 6.59%; Net Cash Provided by Operating Activities: $12.108B; Free Cash Flow: $6.278B; CapEx: $5.831B; CFO/Revenue efficiency: Operating cash flow margin ~7.14%; Cash Conversion Cycle: ~44.07 days; Debt/Capitalization: 0.421; Debt/Equity: 0.726; Current Ratio: 0.803; Quick Ratio: 0.219; Cash Ratio: 0.0925; Inventory Turnover: 2.28; DSO: 4.60 days; DIO: 39.47 days; DPO: 40.25 days; Dividend Payout Ratio: 0.37.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
169.34B |
4.77% |
4.85% |
| Gross Profit |
42.53B |
6.90% |
6.11% |
| Operating Income |
7.94B |
8.53% |
16.06% |
| Net Income |
4.50B |
-42.96% |
-11.81% |
| EPS |
0.56 |
-42.86% |
-11.11% |
Key Financial Ratios
operatingProfitMargin
4.69%
operatingCashFlowPerShare
$1.51
freeCashFlowPerShare
$0.78
Management Commentary
No earnings-call transcript data was provided in the input. Therefore, no management quotes or thematic highlights could be extracted. When the transcript is available, highlights can be grouped by strategy (omni-channel, price leadership, Walmart+), operations (supply chain, inventory levels, store format optimization), and market conditions (retail demand, inflation, competitive dynamics).
Forward Guidance
No explicit forward guidance was included in the supplied data. Based on the QQ2 2025 results and industry dynamics, the prudent view is that Walmart will continue to prioritize: (1) sustaining mid-single-digit revenue growth via e‑commerce expansion, international penetration, and Sam’s Club membership growth; (2) modest margin discipline through supply-chain efficiencies and mix optimization; (3) balanced capital allocation with ongoing buybacks, dividends, and selective capex in automation and logistics. Key factors to monitor include: consumer spending trends and grocery inflation, input cost containment (labor, freight, energy), currency effects in international markets, and progress in omnichannel profitability and delivery/fulfillment efficiencies.