Walmart Inc. stock research
FY2025 Q1
Walmart (WMT) Gross Margin — Quarter Ended Apr 30, 2024
Revenue in the current quarter was lower than the prior quarter but higher than the year-ago quarter. Gross margin improved compared to both periods, as cost of revenue changed at a different rate than revenue.
Gross margin takeaway
Quarter ended Apr 30, 2024 · FY2025 Q1
Revenue in the current quarter was lower than the prior quarter but higher than the year-ago quarter. Gross margin improved compared to both periods, as cost of revenue changed at a different rate than revenue.
- The most observable driver of gross margin improvement is the decline in cost of revenue as a share of revenue compared to both the prior quarter and the year-ago quarter. A key item to monitor is whether this ratio continues to decrease.
- Compared to the prior quarter, revenue decreased while gross margin increased. Versus the year-ago quarter, both revenue and gross profit increased, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.1%
Gross profit
$38.5B
Revenue
$159.9B
Cost of revenue
$121.4B
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+0.4 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 |
|---|---|---|---|---|
| Jul 31, 2023 | $160.3B | $38.4B | $121.8B | 24.0% |
| Oct 31, 2023 | $159.4B | $38.3B | $121.2B | 24.0% |
| Jan 31, 2024 | $171.9B | $40.1B | $131.8B | 23.3% |
| Apr 30, 2024 | $159.9B | $38.5B | $121.4B | 24.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2024
+0.8 pts
Year-over-year change
Apr 30, 2023
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of gross margin improvement is the decline in cost of revenue as a share of revenue compared to both the prior quarter and the year-ago quarter. A key item to monitor is whether this ratio continues to decrease.
Compared to the prior quarter, revenue decreased while gross margin increased. Versus the year-ago quarter, both revenue and gross profit increased, and gross margin was higher.
Monitor the ratio of cost of revenue to revenue in upcoming quarters.