Walmart Inc. stock research
FY2026 Q4
Walmart (WMT) Gross Margin — Quarter Ended Jan 31, 2026
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin weakened slightly from the prior quarter but improved relative to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jan 31, 2026 · FY2026 Q4
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin weakened slightly from the prior quarter but improved relative to the same quarter one year earlier.
- The gross margin for the current quarter is higher than the year-ago quarter but lower than the immediately preceding quarter, indicating a mixed trend. The strongest observable driver is the relationship between revenue growth and cost of revenue growth; revenue grew faster than cost of revenue compared to the year-ago quarter, supporting margin improvement, but slower than cost of revenue compared to the prior quarter, leading to margin weakening.
- Compared to the prior quarter, gross margin weakened as cost of revenue increased at a faster rate than revenue. Compared to the same quarter one year earlier, gross margin improved as revenue grew more than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
24.0%
Gross profit
$45.3B
Revenue
$188.9B
Cost of revenue
$143.6B
Quarter-over-quarter change
-0.2 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 |
|---|---|---|---|---|
| Apr 30, 2025 | $164.0B | $39.7B | $124.3B | 24.2% |
| Jul 31, 2025 | $175.8B | $43.0B | $132.8B | 24.5% |
| Oct 31, 2025 | $177.8B | $43.1B | $134.7B | 24.2% |
| Jan 31, 2026 | $188.9B | $45.3B | $143.6B | 24.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2025
-0.2 pts
Year-over-year change
Jan 31, 2025
+0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin for the current quarter is higher than the year-ago quarter but lower than the immediately preceding quarter, indicating a mixed trend. The strongest observable driver is the relationship between revenue growth and cost of revenue growth; revenue grew faster than cost of revenue compared to the year-ago quarter, supporting margin improvement, but slower than cost of revenue compared to the prior quarter, leading to margin weakening.
Compared to the prior quarter, gross margin weakened as cost of revenue increased at a faster rate than revenue. Compared to the same quarter one year earlier, gross margin improved as revenue grew more than cost of revenue.
Monitor the relative growth rates of revenue and cost of revenue in future quarters, as their divergence directly impacts gross margin direction.