Walmart Inc. stock research
FY2026 Q1
Walmart (WMT) Gross Margin — Quarter Ended Apr 30, 2025
Revenue and cost of revenue both declined from the prior quarter, but cost of revenue fell at a faster pace, causing gross profit as a share of revenue to increase. Compared with the same quarter a year ago, gross margin was stable with a modest improvement.
Gross margin takeaway
Quarter ended Apr 30, 2025 · FY2026 Q1
Revenue and cost of revenue both declined from the prior quarter, but cost of revenue fell at a faster pace, causing gross profit as a share of revenue to increase. Compared with the same quarter a year ago, gross margin was stable with a modest improvement.
- The strongest observable margin driver is the faster decline in cost of revenue relative to revenue. This relationship directly expanded the gross margin.
- Sequentially, gross margin improved from the prior quarter. Year over year, gross margin was stable, showing a slight increase from the same period last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.2%
Gross profit
$39.7B
Revenue
$164.0B
Cost of revenue
$124.3B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+0.1 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, 2024 | $167.8B | $41.0B | $126.8B | 24.4% |
| Oct 31, 2024 | $168.0B | $40.7B | $127.3B | 24.2% |
| Jan 31, 2025 | $178.8B | $42.7B | $136.2B | 23.9% |
| Apr 30, 2025 | $164.0B | $39.7B | $124.3B | 24.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2025
+0.3 pts
Year-over-year change
Apr 30, 2024
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the faster decline in cost of revenue relative to revenue. This relationship directly expanded the gross margin.
Sequentially, gross margin improved from the prior quarter. Year over year, gross margin was stable, showing a slight increase from the same period last year.
Monitor the ongoing trend of cost of revenue relative to revenue in future quarters to assess whether this pattern persists.