• Revenue growth of 8%, up 5.6% in constant currency (cc)1
• Operating income decreased 2%, up 0.4% adjusted (cc)1
• eCommerce up 25% globally
• GAAP EPS of $0.88; Adjusted EPS1 of $0.68
• Company issues guidance for Q3; raises net sales and EPS outlook for FY26

Bentonville, AK — Walmart announced second-quarter results with strong growth in revenue for each business segment.

Globally, eCommerce grew 25% with digital mix up across all segments. Walmart U.S. comp sales2 up 4.6% with strong growth in grocery and health & wellness. Looking ahead, the Company issues guidance for the third quarter with net sales expected to increase 3.75% to 4.75% and operating income to increase 3.0% to 6.0%, both in constant currency (“cc”).1 The Company raises outlook for net sales growth to 3.75% to 4.75% and adjusted EPS1 to

$2.52 to $2.62 for fiscal year 2026. Adjusted operating income1 guidance remains unchanged from at 3.5% to 5.5%.

Second Quarter Highlights

• Revenue of $177.4 billion, up 8%, or 5.6% (cc)1
• Global eCommerce sales grew 25%, led by store- fulfilled pickup & delivery and marketplace
• Global advertising business3 grew 46%, including VIZIO; Walmart Connect in the S. up 31%
• Membership and other income up 5.4%, including 3% growth in membership income globally
• Gross margin rate up 4 bps, led by Walmart S.
• Operating income decreased $0.7 billion, or 8.2%, affected by discrete legal & restructuring costs; adjusted up 4% (cc)1 due to strong sales and continued execution on our financial framework; growth also affected ~560 bps from higher self- insured general liability claims expense
• Adjusted EPS1 of $0.68 excludes the effect, net of tax, of a net gain of $0.26 on equity and other investments, $0.05 from charges related to certain legal matters, and $0.01 from business restructuring charges
• ROA at 3%; ROI1 at 15.1%

1 See additional information at the end of this release regarding non-GAAP financial measures.

2 Comp sales for the 13-week period ended August 1, 2025 compared to the 13-week period ended July 26, 2024 and excludes fuel. See Supplemental Financial Information for additional information.

3 Our global advertising business is recorded in either net sales or as a reduction to cost of sales, depending on the nature of the advertising arrangement. “cc” – constant currencyng sales growth reflects share gains across key categories; customers are responding to the increased convenience of eCommerce/omnichannel offerings as well as more Rollbacks in pricing

• eCommerce sales accelerated with 26% growth reflecting strength in store-fulfilled delivery, advertising and marketplace; sales through store-fulfilled delivery channels grew nearly 50%, with ~1/3rd of orders expedited
• Momentum in advertising continued, including a 31% increase in Walmart Connect sales (ex-VIZIO)
• Gross profit rate increased 26 bps; membership income up double-digits; operating expense deleveraged 43 bps
• Operating income up 0% reflects strong inventory management and improved eCommerce economics, aided by continued improvement in business mix; largely offset by 620 bps headwind from increased self-insured general liability claims expense
• Inventory increased 2% while maintaining healthy in-stock levels.

Walmart International

• Growth in net sales (cc)1 led by China, Walmex, and Flipkart; transaction counts & unit volumes up across markets
• Continued strength in food & consumables and general merchandise
• eCommerce sales up 22%, led by store-fulfilled pickup & delivery and marketplace; digital mix up across markets
• Advertising business3 grew 15%, led by Flipkart
• Operating income (cc)1 decline affected by strategic growth investments in India, Canada and Mexico
• Currency rate fluctuations negatively affected sales by $1.5 billion and operating income by $0.1 billion

1 See additional information at the end of this release regarding non-GAAP financial measures.

2 See Supplemental Financial Information for additional information.

3 Our global advertising business is recorded in either net sales or as a reduction to cost of sales, depending on the nature of the advertising arrangement.

NP – Not provided

cc – constant currency

Sam’s Club U.S.

• Sales strength led by grocery and health & wellness; continued growth in general merchandise sales
• Comp sales momentum driven by higher units; continued strength in transactions
• eCommerce sales up 26% with continued strong growth in club-fulfilled pickup & delivery
• Membership income grew 6% with steady growth in member counts, renewal rates, and Plus members
• Operating income negatively affected by $80 million from strategic supply chain reorganization charges
• Adjusted operating income2 growth negatively affected by ~710 bps from higher general liability claims expense

1 See Supplemental Financial Information for additional information.

2 See additional information at the end of this release regarding non-GAAP financial measures. NP – Not provided

Third quarter

The Company’s third quarter fiscal 2026 guidance is based on the following Q3 FY25 figures: Net sales:

$168.0 billion, operating income:

$6.7 billion, and adjusted EPS1

$0.58.

Increase 3.75% to 4.75%

Fiscal year 2026

The Company’s fiscal year guidance is based on the following FY25 figures: Net sales: $674.5 billion, adjusted operating income1: $29.5 billion, and adjusted EPS1: $2.51.

Consolidated net income attributable to Walmart                        $     7,026   $                                                                                                        4,501                                                                                                                                      56.1%   $                                                                                                         11,513   $                                                                                                         9,605                                                                                                                                      19.9% 

Net income per common share:

Current liabilities:

Total liabilities, redeemable noncontrolling interest, and shareholders’ equity                                                                                                            $                                                                                                                     270,837   $                                                                                                                     260,823   $  254,440

Segment information

(dollars in millions)

Walmart U.S.

Net sales

Membership and other income2 Gross profit3

Operating expenses3

Operating income

Adjusted operating income4

Walmart International

Net sales

Membership and other income2 Gross profit3

Operating expenses3

Operating income

Sam’s Club U.S.

Net sales

Membership and other income2 Gross profit3

Operating expenses3

Operating income

Adjusted operating income4

Corporate and support Membership and other income2 Operating expenses3 Operating loss

Consolidated

Net sales

Membership and other income2 Gross profit3

Operating expenses3

Operating income

Adjusted operating income4

1 Corporate and support shown as percentage of consolidated net sales.

2 Membership and other income includes membership fees and other items such as rental and tenant income, recycling income, gift card breakage income, as well as other income from corporate campus facilities.

3 Gross profit defined as net sales less cost of sales. Operating expenses refers to operating, selling, general and administrative expenses.

4 See additional information at the end of the release regarding non-GAAP financial measures. NP – Not provided

Constant currency

I

The table below reflects the calculation of constant currency for total revenues, net sales and operating income for the three and six months ended July 31, 2025.

1 Change versus prior year comparable period reported results. N/A – Not applicable

Adjusted operating income

Adjusted operating income is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain charges included in operating income calculated in accordance with GAAP. Management believes that adjusted operating income is a meaningful measure to share with investors because it best allows comparison of the performance with that of the comparable period. In addition, adjusted operating income affords investors a view of what management considers Walmart’s core earnings performance and the ability to make a more informed assessment of such core earnings performance as compared with that of the prior year.

When we refer to adjusted operating income in constant currency, this means adjusted operating results without the impact of currency exchange rate fluctuations. The disclosure of constant currency amounts or results permits investors to better understand Walmart’s underlying performance without the effects of currency exchange rate fluctuations. The table below reflects the calculation of adjusted operating income and adjusted operating income in constant currency for the three and six months ended July 31, 2025, and the calculation of adjusted operating income for the three and six months ended July 31, 2024.

Percent change3                                                                                                     0.4%                                                                                        NP

Operating income:

1 Represents charges related to certain legal matters which were outside the normal course of our operations and recorded in Corporate and support.

2 Business reorganization charges for the three and six months ended July 31, 2025 primarily relate to expenses incurred in connection with strategic supply chain decisions made in the Sam’s Club U.S. segment, as well as incremental business reorganization charges recorded in Corporate and support. Business reorganization charges for the six months ended July 31, 2024 primarily relate to expenses incurred in connection with strategic decisions made in the Walmart U.S. segment, as well as incremental business reorganization expenses recorded in Corporate and support.

3 Change versus prior year comparable period.

NP – Not provided

“cc” – constant currency

Free cash flow

Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company’s financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity.

We define free cash flow as net cash provided by operating activities in a period minus payments for property and equipment made in that period. Net cash provided by operating activities was $18.4 billion for the six months ended July 31, 2025, which represents an increase of $2.0 billion when compared to the same period in the prior year. The increase was primarily due to timing of certain payments, lower cash tax payments and increased cash provided by operating income. Free cash flow for the six months ended July 31, 2025 was $6.9 billion, which represents an increase of $1.1 billion when compared to the same period in the prior year. The increase in free cash flow was due to the increase in net cash provided by operating activities described above, partially offset by an increase of $0.9 billion in capital expenditures to support our investment strategy.

Walmart’s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our Consolidated Statements of Cash Flows.

Although other companies report their free cash flow, numerous methods may exist for calculating a company’s free cash flow. As a result, the method used by Walmart’s management to calculate our free cash flow may differ from the methods used by other companies to calculate their free cash flow.

The following table sets forth a reconciliation of free cash flow, a non-GAAP financial measure, to net cash provided by operating activities, which we believe to be the GAAP financial measure most directly comparable to free cash flow, as well as information regarding net cash used in investing activities and net cash used in financing activities.

1 “Net cash used in investing activities” includes payments for property and equipment, which is also included in our computation of free cash flow.

Adjusted EPS

Adjusted diluted earnings per share attributable to Walmart (adjusted EPS) is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain amounts included in the diluted earnings per share attributable to Walmart calculated in accordance with GAAP (EPS), the most directly comparable financial measure calculated in accordance with GAAP. Management believes that adjusted EPS is a meaningful measure to share with investors because it best allows comparison of the performance with that of the comparable period. In addition, adjusted EPS affords investors a view of what management considers Walmart’s core earnings performance and the ability to make a more informed assessment of such core earnings performance with that of the prior year.

We adjust for the unrealized and realized gains and losses on our equity and other investments each quarter because although the investments are strategic decisions for our retail operations, management’s measurement of each strategy is primarily focused on the operational results rather than the fair value of such investments. Additionally, management does not forecast changes in the fair value of its equity and other investments. Accordingly, management adjusts EPS each quarter for the unrealized and realized gains and losses related to those investments.

Tax impacts are calculated based on the nature of the item, including any realizable deductions, and statutory rates in effect for relevant jurisdictions. NCI impacts are based on the ownership percentages of our noncontrolling interests, where applicable.

We have calculated adjusted EPS for the three and six months ended July 31, 2025 by adjusting EPS for the following:

1. unrealized and realized gains and losses on our equity and other investments
2. charges related to certain legal matters which were outside the normal course of our operations and recorded in Corporate and support; and
3. business reorganization charges, primarily related to expenses incurred in connection with strategic supply chain decisions made in the Sam’s Club S. segment, as well as incremental business reorganization charges recorded in Corporate and support.

Three Months Ended July 31, 20251g by 2.