Walmart Inc. is a global omnichannel retailer that helps customers save money and live better by offering a wide range of products and services through its retail stores and eCommerce platforms. The company operates in three main segments: Walmart U.S., Walmart International, and Sam's Club U.S., focusing on price leadership and convenience.
Business segments
10-K
Walmart U.S.Walmart InternationalSam's Club U.S.
Recent News
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Earnings call: Q1 FY2027 FY2027
Intel
Free
May 21, 2027Confident
● Full transcript on file
Doug McMillon (President and Chief Executive Officer), John David Rainey (Executive Vice President and Chief Financial Officer)
Key metrics
Walmart reported Q1 FY2027 revenue of $177.75 billion, up 7% year over year and ahead of Street estimates of $174.84 billion by about 2%.[2] Gross margin held at 25%, operating margin was around 4% as SG&A absorbed the gross profit gain, and gross profit grew to $44.69 billion, up 8% year over year; advertising grew 37% globally and membership fee
Forward guidance
Management reiterated guidance for first quarter adjusted operating income growth in constant currency of approximately 5%, noting that results were in line with guidance despite higher-than-anticipated fuel costs.[2] They indicated that revenue and operating income growth would continue to be driven by accelerating eCommerce, marketplace, advertis
Notable Q&A
In a key Q&A segment, an analyst questioned the impact of higher fuel costs on operating income and whether the 5% constant-currency operating income growth guidance remained realistic; CFO John David Rainey responded that first quarter adjusted operating income growth of approximately 5% was achiev
Surprise items
Revenue of $177.75 billion exceeded consensus by roughly 2%, driven by stronger-than-expected eCommerce, marketplace, and advertising growth.[2] The disclosure that advertising and membership fee revenue together now account for about 33% of operating income was a notable mix shift surprise, undersc
Confidence 6.4 / 10 · 100% model agreement ·
Scheduled Jun 07, 2026
WMT trades at 41.9x TTM P/E and ~36x forward P/E — a steep premium for a retailer posting ~7% revenue growth and ~19% earnings growth, with the next earnings catalyst not until August 20. The stock sits roughly 12% below its 52-week high of $135.16 (hit May 19), has underperformed over the past 30 days (-8.6%), and faces a still-uncertain tariff environment where management explicitly declined to provide EPS guidance. With no near-term catalyst and the macro backdrop leaning BEARISH, the risk/reward is balanced at best.
Strongest bull case
Walmart's Q1 FY27 eCommerce grew 26% YoY with the U.S. segment posting its first-ever profitable eCommerce quarter, validating a structurally higher-multiple story and supporting the $137.93 analyst consensus price target — implying ~16% upside from current levels.
Strongest bear case
Tariff uncertainty is the live, specific risk: management withheld Q2 EPS/operating income guidance entirely due to 'fluctuating U.S. tariff policy,' CFO Rainey stated tariffs are 'still too high,' and Walton Family Holdings Trust just sold ~$200M in stock on June 4 — the largest recent insider transaction — suggesting elevated near-term risk awareness at the controlling family level.
What the market may be missing
The Walton family's $200M block sale on June 4 — the day of the annual meeting — is being dismissed as routine estate planning, but its timing immediately following the 52-week high (May 19) and amid unresolved tariff guidance suspension may signal insider confidence in the stock is lower than the 42-analyst all-Buy consensus implies. Combined with a DCF-based fair value estimate near $92 vs. the current $118.88, the valuation premium is entirely dependent on a high-growth narrative that tariff headwinds could compress.
Furner met with Indian PM Modi to discuss India's economic growth opportunities and signal Walmart's commitment to deeper investment in the Indian market during his first visit as CEO.
Furner highlighted India's strategic importance for Walmart in sourcing, digital innovation, and entrepreneur-led growth. He positioned India as a blueprint for the future of global retail and emphasized the growing consumer preference for speed and
“Quick commerce tends to become a habit once customers experience it.”
Furner championed Walmart's quick-commerce expansion through Flipkart Minutes, highlighting global consumer trends toward faster deliveries and convenience-led commerce. He discussed rising consumer preference for speed across markets.
“Consumers across markets are increasingly prioritising speed and convenience.”
CEO letter to shareholders
Signal
No shareholder letter on file for WMT
Some companies file their annual report without a separate CEO letter.
When available, Xavier extracts strategic themes, tone analysis, and
forward-looking statements to help you read between the lines.
Executive compensation
Signal
Name
Title
Total compensation
Doug McMillon
President and Chief Executive Officer
$29,240,930
John R. Furner
EVP, President and CEO, Walmart U.S.
$27,343,149
John David Rainey
EVP and CFO
$15,455,188
Suresh Kumar
EVP, Global Chief Technology Officer and Chief Development Officer
Risk increasing — Failure to successfully execute Walmart's omnichannel strategy and the high cost
Mgmt narrative
Management tone: Cautiously optimistic
Analyst drift
Consensus Buy — targets stable
Insider sentiment
Pattern detection — 90 days needed
Signal history
Signal
Date
Direction
Conf.
Agree.
Thesis
Price
Type
Jun 07, 2026
NEUTRAL
6.4/10
100%
WMT trades at 41.9x TTM P/E and ~36x forward P/E — a steep premium for a retailer posting ~7% revenu...
$118.88
Sched.
May 31, 2026
BEARISH
6.8/10
50%
WMT trades at 40.8x TTM P/E and 35x forward P/E — egregiously expensive for a retailer with 7% reven...
$115.75
Sched.
May 24, 2026
NEUTRAL
6.5/10
75%
WMT just reported Q1 FY27 earnings (May 21) that were in-line on revenue and EPS but missed on EBITD...
$120.27
Sched.
May 17, 2026
NEUTRAL
6.4/10
75%
WMT trades at 48x TTM P/E and 40x forward P/E — deeply expensive for a retailer with near-zero earni...
$131.45
Sched.
May 10, 2026
NEUTRAL
6.4/10
100%
WMT is a high-quality operator with genuine secular tailwinds in e-commerce, advertising, and member...
$130.43
Sched.
May 03, 2026
NEUTRAL
5.5/10
100%
WMT is a world-class business but is priced at 48x TTM earnings with near-zero earnings growth (-0.1...
$131.60
Sched.
Apr 12, 2026
NEUTRAL
6.2/10
100%
Walmart is a high-quality defensive compounder trading ~7% below the consensus analyst price target ...
$126.77
Sched.
Showing last 7 signals
WMTWalmart Inc.
Signal
FY2026 annual report (10-K filed 2026-03-13)
INCOME STATEMENT
?Revenue
$713.2 billion4.7% YoY
Total sales from food, beverages, household products, and personal care items. Up 4.7% from last year. Management has guided capital spending of $25 billion to $27 billion.
?Operating income
$29.8 billion
What remains after subtracting all operating costs — salaries, materials, rent, R&D — from revenue. This is the profit from actually running the business, before interest and taxes. Operating margin is 4.2%, meaning 4 cents of every dollar of revenue becomes operating profit.
?Net income
$22.3 billion
The bottom line — what the company actually earned after all expenses, interest, and taxes. This is the number that gets divided by shares outstanding to calculate earnings per share (EPS), which directly affects the stock price. Net margin is 3.0%. Note: results include non-recurring items (non-cash charge of $0.7 billion related to modification of phonepe share-based compensation arrangements) that may not repeat.
?Free cash flow
$14.9 billion
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of financial health.
?EPS (diluted)
$0.67
Earnings per share — net income divided by total shares outstanding (including stock options and convertible bonds that could become shares). This is the single number most investors watch because it directly connects company profits to your ownership stake.
?Dividend per share
$0.94
Cash paid to shareholders each year for every share they own. Staples companies are known for reliable, growing dividends — consumers buy toothpaste and cereal in any economy.
BALANCE SHEET
?Total assets
$289.6B
Everything the company owns — cash, factories, equipment, patents, inventory, investments. Includes brand portfolios, manufacturing plants, distribution networks, and retail shelf space.
?Cash & equivalents
$10.7 billion
Money available right now — bank accounts, money market funds, short-term government bonds. This is the company's financial cushion. More cash means more flexibility to invest, acquire, or survive a downturn without borrowing.
?Total debt
$38.2 billion
All money the company owes — bonds, bank loans, credit facilities. Compare this to cash to understand the net debt position. The company holds $10.7 billion in cash against this debt.
?Shares outstanding
8.022 billion
Total number of shares that exist — owned by all investors, insiders, and institutions combined. When the company reports EPS, this is the denominator. Share buybacks reduce this number, which increases EPS even without earnings growth.
?Debt-to-equity ratio
0.5%
How much debt the company uses for every dollar of shareholder equity. Under 100% means more equity than debt (conservative). Over 200% means heavy leverage. Banks and utilities naturally run higher ratios.
CASH FLOW
?Operating cash flow
$4.7B
Actual cash generated from running the business — not accounting profits, real money coming in the door. This is more trustworthy than net income because it's harder to manipulate. A company can report profits but still run out of cash.
?Capital expenditure
$6.7B
Money spent on long-term assets — manufacturing plants, distribution centers, and packaging lines. This is the cost of maintaining and growing the business. Management has guided $25 billion to $27 billion for capital spending.
?Free cash flow
-$1.9B
Operating cash flow minus capital expenditure. This is the money available for dividends, share buybacks, debt repayment, or acquisitions. Free cash flow is what many professional investors consider the truest measure of a company's financial health.
?Interest expense
$574M
The cost of borrowing money — interest payments on bonds, loans, and credit facilities. Higher interest expense means more of the company's earnings go to lenders instead of shareholders.
?Interest coverage
13.1x
EBITDA divided by interest expense — how many times over the company can pay its interest bill from earnings. At 13.1x, coverage is very comfortable. Lenders typically want to see at least 3-4x.
EARNINGS QUALITY
?Accrual quality
HIGH
Measures how well reported earnings match actual cash generation. HIGH means earnings are backed by real cash. LOW means the company may be using accounting techniques to inflate reported numbers. Professional investors check this before trusting EPS.
?Recurring revenue
1%
1% of revenue comes from repeat sources — ongoing contracts, subscriptions, or regular customer purchasing patterns rather than one-time sales. Higher recurring revenue means more predictable future earnings.
?Cash conversion
1.9x
Operating cash flow divided by net income. Above 1.0x means the company generates more cash than it reports in profits — a sign of high-quality earnings. At 1.9x, the company is generating significantly more cash than reported profits — very healthy.
?Non-recurring items
1 identified
One-time items that affect the bottom line but won't repeat: non-cash charge of $0.7 billion related to modification of phonepe share-based compensation arrangements. When evaluating the company's true earning power, investors strip these out to see what the business earns on a normal basis.
?Management tone
Cautious Optimistic
How management sounds in their SEC filings — are they confident, cautious, or defensive? This is analyzed from the actual language used in the 10-K annual report. A shift in tone from prior years can signal changing conditions before the numbers reflect it.
?Top risk factor
Increasing
Failure to successfully execute Walmart's omnichannel strategy and the high cost of related investments in eCommerce and technology could materially adversely affect its market position, net sales, and financial performance. Risk trend: increasing. This is the single biggest threat to the company's future earnings as identified in their SEC filing.
Click any row to expand the plain-English explanation. Source: SEC EDGAR XBRL filings.
Capital intelligence
Signal
Weighted Average Cost of Capital · Return on Invested Capital · Economic Value Added
ROIC
17.16%
WACC
7.23%
🟢 VALUE CREATOR — EVA Spread: 9.93%
?WACC
7.23%
Weighted Average Cost of Capital — the minimum return Walmart Inc. must earn on its investments to satisfy both debt holders and shareholders. Computed from a 95.01% equity / 4.99% debt capital structure. If the company earns less than 7.23% on its invested capital, it is destroying shareholder value.
?Cost of equity
7.57%
The return shareholders demand for holding WMT stock instead of a risk-free Treasury bond. Computed using the Capital Asset Pricing Model: Risk-Free Rate (4.25%) + Beta (0.60) × Equity Risk Premium (5.50%). A beta of 0.60 means WMT is less volatile than the overall market.
?Cost of debt (after-tax)
0.90%
What Walmart Inc. effectively pays on its borrowed money after the tax deduction on interest. Interest is tax-deductible, so the true cost is lower than the stated rate. Effective tax rate used: 25.43%.
?Capital structure
E: 95.01% / D: 4.99%
How Walmart Inc. finances its operations — the split between equity (stock market value: $904.8B) and debt (total borrowings: $47.6B). More debt means more leverage — higher potential returns but higher risk.
?ROIC
17.16%
Return on Invested Capital — how efficiently Walmart Inc. turns its total invested capital into after-tax operating profit. NOPAT ($22.5B) ÷ Invested Capital ($131.2B). This exceeds WACC, meaning the company creates value for shareholders.
?EVA
$13.0B
Economic Value Added — the dollar amount of value Walmart Inc. created (or destroyed) above its cost of capital. NOPAT ($22.5B) minus the capital charge (Invested Capital × WACC = $9.5B). Positive EVA means every dollar of capital is earning more than it costs.
?NOPAT
$22.5B
Net Operating Profit After Tax — operating income adjusted for taxes, ignoring how the company is financed. Operating Income ($30.2B) × (1 - Tax Rate 25.43%). This isolates the company's core business profitability from its financing decisions.
Xavier consensus signals are intelligence outputs, not investment advice. All signals are generated by a multi-model AI system and reflect public information at time of generation. Past signal accuracy does not guarantee future performance. Wall Street analyst consensus sourced from public disclosures, summarized weekly. Financial data sourced from SEC EDGAR and yfinance. Insider transactions sourced from SEC EDGAR Form 4 filings. Updated Jun 07, 2026.