Walmart Inc. stock research
FY2024 Q1
Walmart (WMT) Gross Margin — Quarter Ended Apr 30, 2023
Revenue and gross profit both increased from the same quarter one year earlier, while cost of revenue rose at a similar pace, resulting in a gross margin that was nearly stable. Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin improved as cost of revenue declined more sharply than revenue.
Gross margin takeaway
Quarter ended Apr 30, 2023 · FY2024 Q1
Revenue and gross profit both increased from the same quarter one year earlier, while cost of revenue rose at a similar pace, resulting in a gross margin that was nearly stable. Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin improved as cost of revenue declined more sharply than revenue.
- The relationship among revenue, cost of revenue, and gross profit shows that gross margin strengthened sequentially despite lower revenue, indicating that cost of revenue decreased disproportionately in the current quarter.
- Compared to the preceding quarter, gross margin improved, while revenue and gross profit were both lower. Versus the same quarter one year earlier, gross margin was essentially stable, with all three metrics—revenue, gross profit, and cost of revenue—higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
23.7%
Gross profit
$35.7B
Revenue
$151.0B
Cost of revenue
$115.3B
Quarter-over-quarter change
+0.7 pts
Year-over-year change
-0.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jan 31, 2023 | $162.7B | $37.3B | $125.4B | 22.9% |
| Apr 30, 2023 | $151.0B | $35.7B | $115.3B | 23.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2023
+0.7 pts
Year-over-year change
Apr 30, 2022
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship among revenue, cost of revenue, and gross profit shows that gross margin strengthened sequentially despite lower revenue, indicating that cost of revenue decreased disproportionately in the current quarter.
Compared to the preceding quarter, gross margin improved, while revenue and gross profit were both lower. Versus the same quarter one year earlier, gross margin was essentially stable, with all three metrics—revenue, gross profit, and cost of revenue—higher.
Monitor whether the sequential cost of revenue reduction can be sustained in future quarters as a driver of gross margin stability.