Walmart Inc. stock research
FY2026 Q2
Walmart (WMT) Gross Margin — Quarter Ended Jul 31, 2025
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit grew faster than cost of revenue, resulting in a higher gross margin.
Gross margin takeaway
Quarter ended Jul 31, 2025 · FY2026 Q2
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit grew faster than cost of revenue, resulting in a higher gross margin.
- The gross margin improved sequentially and year-over-year, driven by a larger increase in gross profit relative to the increase in cost of revenue.
- Compared to the immediately preceding quarter, gross margin strengthened. Compared to the same quarter one year earlier, gross margin also improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.5%
Gross profit
$43.0B
Revenue
$175.8B
Cost of revenue
$132.8B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
+0.0 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 |
|---|---|---|---|---|
| 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% |
| Jul 31, 2025 | $175.8B | $43.0B | $132.8B | 24.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Apr 30, 2025
+0.3 pts
Year-over-year change
Jul 31, 2024
+0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improved sequentially and year-over-year, driven by a larger increase in gross profit relative to the increase in cost of revenue.
Compared to the immediately preceding quarter, gross margin strengthened. Compared to the same quarter one year earlier, gross margin also improved.
Monitor the trend in cost of revenue relative to revenue to assess whether the margin improvement can be sustained.