WM

Walmart Inc. stock research

Jan 31, 2025

FY2025 Q4

Walmart (WMT) Gross Margin — Quarter Ended Jan 31, 2025

Revenue and gross profit both increased compared to the year-ago quarter, and gross margin improved. Sequentially, revenue and gross profit also increased, but gross margin weakened slightly.

Gross margin takeaway

Quarter ended Jan 31, 2025 · FY2025 Q4

Revenue and gross profit both increased compared to the year-ago quarter, and gross margin improved. Sequentially, revenue and gross profit also increased, but gross margin weakened slightly.

  • The strongest observable driver is the year-over-year improvement in gross margin, which resulted from gross profit increasing more than revenue.
  • Compared to the immediately preceding quarter, gross margin was lower, despite higher revenue and gross profit. Compared to the same quarter one year earlier, gross margin was higher, with both revenue and gross profit higher.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

23.9%

Gross profit

$42.7B

Revenue

$178.8B

Cost of revenue

$136.2B

Quarter-over-quarter change

-0.3 pts

Year-over-year change

+0.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Apr 30, 2024$159.9B$38.5B$121.4B24.1%
Jul 31, 2024$167.8B$41.0B$126.8B24.4%
Oct 31, 2024$168.0B$40.7B$127.3B24.2%
Jan 31, 2025$178.8B$42.7B$136.2B23.9%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Oct 31, 2024

-0.3 pts

Year-over-year change

Jan 31, 2024

+0.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable driver is the year-over-year improvement in gross margin, which resulted from gross profit increasing more than revenue.

Compared to the immediately preceding quarter, gross margin was lower, despite higher revenue and gross profit. Compared to the same quarter one year earlier, gross margin was higher, with both revenue and gross profit higher.

Monitor the sequential trend in gross margin, as it declined from the prior quarter despite revenue growth.

WMT Gross Margin — Quarter Ended Jan 31, 2025