Start here if you're new
what it is
Walmart sells your groceries, household basics, and bulk goods at giant scale through stores, clubs, and its website.
how it gets paid
Last year Walmart made $706.4B in revenue. Walmart U.S. grocery was the main engine at $290.3B, or 41% of sales.
why it's growing
Revenue grew 4.7% last year. U.s. comparable sales grew 4.5%, driven by higher transactions and a larger average basket size.
what just happened
Walmart's latest reported quarter delivered $0.74 in EPS, matching estimates after another year of steady quarterly profit growth.
At a glance
A++ balance sheet — fortress balance sheet — as safe as it gets
100/100 earnings predictability — you can trust these numbers
42.5x trailing p/e — you're paying up for this one
0.9% dividend yield — cash in your pocket every quarter
19.5% return on capital — nothing to write home about
xvary composite: 84/100 — above average
What they do
Walmart sells your groceries, household basics, and bulk goods at giant scale through stores, clubs, and its website.
Scale is the whole trick. Walmart operates 10,771 stores globally and keeps most U.S. stores within 400 miles of a distribution center, which means cheaper delivery and fewer stockouts for your cart. Grocery is 60% of U.S. sales, so you may visit for milk and leave with everything else.
How they make money
$706.4B
annual revenue · their business grew +4.7% last year
Walmart U.S. grocery
$290.3B
+4.6%
Walmart U.S. general merchandise
$193.6B
+4.6%
Walmart International
$129.2B
+7.0%
Sam's Club
$94.2B
+5.7%
The products that matter
traffic-driving grocery retail
U.S. Grocery & Essentials
60% of U.S. sales
this is the weekly habit. it drove 4.5% comparable sales growth in the latest quarter and keeps customers coming back for everything else.
traffic driver
membership warehouse retail
Sam's Club
600 U.S. locations
600 locations gives Walmart a second retail format with recurring membership economics layered on top of everyday shopping.
membership layer
international retail footprint
International Operations
5,566 foreign stores
5,566 stores outside the U.S. make this the clearest route to growth beyond the domestic grocery engine, even if the page is thin on margin detail.
growth lever
Key numbers
42.5x
trailing p/e
Price-to-earnings ratio → how much you pay for each dollar of profit → so what: Walmart is priced like a premium stock, not a plain retailer.
19.5%
return on capital
Return on capital → profit generated from money invested in the business → so what: Walmart turns scale into real efficiency.
6.5%
operating margin
Operating margin → profit left after running the business → so what: Walmart wins on volume, not fat margins.
$743B
fy2026 sales
Projected revenue → next year's expected sales → so what: this is a giant still adding top-line dollars.
Financial health
A++
strength
- balance sheet grade A++ — the absolute highest — fortress balance sheet
- risk rank 1 — safer than 95% of stocks
- price stability 95 / 100
- long-term debt $40.4B (4% of capital)
- net profit margin 3.8% — keeps 4 cents of every dollar in revenue
- return on equity 24% — $0.24 profit for every $1 investors have put in
A++ with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in WMT 3 years ago → it's now worth $24,480.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Walmart's latest reported quarter delivered $0.74 in EPS, matching estimates after another year of steady quarterly profit growth.
Quarterly EPS rose from $0.66 to $0.74 vs. prior year in the most recent quarter shown, while fiscal 2025 full-year EPS reached $2.65 versus $2.51 in fiscal 2024. The bigger pattern is consistency: earnings predictability is 100, and every quarter in fiscal 2025 beat the prior-year quarter.
$517.5B
revenue
$0.74
eps
6.5%
operating margin
the number that mattered
$0.74 matters because it capped a fiscal year where every quarter ran above the prior year, which is exactly what a 42.5x multiple needs.
-
walmart’s results exceeded expectations.
-
the company reported strong october-quarter results (fiscal 2025 ends january 31st), with total revenue rising 6% vs. prior year to $180 billion, exceeding analyst forecasts, and net income reaching $6.1 billion.
-
u.s. comparable sales (excluding fuel) grew 4.5%, driven by higher transactions and a larger average basket size.
-
in-store prices increased just 1.3% despite stubbornly high everyday essential costs, as the company absorbed some tariff-related pressure rather than fully passing it on to consumers.
-
overall, the full-year sales growth outlook was raised to 4.8%-5.1%, and adjusted earnings per share to $2.58-$2.63.by transferring its stock to the nasdaq, the company will better align with its general ‘‘tech-powered approach’’ to long-term growth. the business model is diversifying through the addition of (relatively) new, high-margin revenue streams.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
Walmart's biggest risk is simple: a business earning 3.2% net margins does not have much room to be generous on price while the stock trades at 42.5x earnings.
med
tariff and input-cost absorption
The latest quarter showed in-store prices rising only 1.3% even as costs stayed stubborn. That's good for customer loyalty. It also means Walmart is choosing to carry some of the pressure itself.
When your net margin is 3.2%, even modest cost absorption matters. The moat is built on low prices, but low prices still have to clear a profit.
med
valuation compression
42.5x earnings is rich for almost anything. For a retailer, it's the whole story. The market is paying up for consistency, safety, and share gains all at once.
If growth drifts back toward ordinary retail levels, the multiple can do the damage even if the business stays healthy.
med
regulatory and legal costs
Walmart agreed to pay $100M to settle deceptive earnings claims. On a $706.4B revenue base, the cash hit is manageable. The real issue is what recurring legal noise says about oversight and future distractions.
This is not a balance-sheet threat. It is a quality-of-execution threat in a stock already priced for very few mistakes.
A++ balance sheet or not, a premium multiple on a 3.2% net-margin business leaves you relying on execution staying unusually clean.
source: institutional data · regulatory filings · risk analysis
Pay attention to
valuation
42.5x earnings needs constant proof
A stock this expensive for retail has to keep delivering clean quarters. The premium is the thesis and the risk.
risk
1.3% price increases
That low in-store price increase protected traffic last quarter. It also tells you margin defense is doing some heavy lifting.
guidance
4.8%–5.1% sales growth outlook
Management raised the full-year sales view. If that range slips, the stock's premium valuation gets harder to defend.
trend
4.5% U.S. comparable sales growth
Groceries are the traffic engine. If comps cool materially, the whole quality narrative loses some shine.
Analyst rankings
short-term outlook
average
outlook rank 3 — in human-speak, analysts see a steady stock, not a near-term rocket.
risk profile
safest 5%
risk rank 1 — lower risk than almost all stocks in the coverage universe.
chart momentum
average
momentum rank 3 — the chart is behaving normally, with no major technical signal either way.
earnings predictability
100 / 100
management has been unusually reliable on guidance. You buy this name partly because surprises are rare.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 1,956 buyers vs. 1,588 sellers in 3q2025. total institutional holdings: 2.8B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$94
$171
$113
current price
$133
target midpoint · +18% from current · 3-5yr high: $155 (+40% · 9% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive