Walmart’s QQ2 2026 results underscore a resilient and scalable retail platform generating meaningful cash flow even as the operating environment remains highly competitive. Total revenue stood at $177.402 billion, up 4.76% year over year and 7.12% quarter over quarter, supported by sustained demand across core categories and favorable mix. Gross profit reached $44.631 billion, delivering a gross margin of 25.16%, while operating income totaled $7.287 billion for a 4.11% operating margin. Net income was $7.026 billion, translating to a net margin of 3.96% and EPS of $0.88, up approximately 57% year over year and quarter over quarter. EBITDA stood at $13.575 billion (EBITDA margin 7.65%), highlighting meaningful operating leverage at scale.
Cash flow remained robust, with operating cash flow of $12.941 billion and free cash flow of $7.956 billion. Cash at period end was $9.877 billion, while total debt stood at $65.014 billion and net debt at $55.583 billion, yielding a healthy interest coverage profile of roughly 9.5x. Walmart also returned capital to shareholders through $1.645 billion in share repurchases and $1.875 billion in dividends, reinforcing the company’s disciplined capital allocation framework. The quarterly metrics point to a business with strong scale, cost discipline, and ongoing ability to translate volume into earnings growth, though near-term liquidity metrics warrant monitoring given a current ratio below 1.0.
Looking ahead, Walmart’s cash generation and balance-sheet strength position it well to fund ongoing investments in e-commerce and supply chain efficiency, while pursuing price leadership and assortment expansion. Investors should monitor key drivers such as comp sales, online/mobile penetration, gross margin trajectory, and working capital dynamics, as well as competitive and macro headwinds that could influence margin progression and cash deployment decisions.