10-K – 2026-03-13 – wmt-20260131.htm

(1) Walmart International properties, with the exception of Canada, are as of December 31, 2025, to correspond with the balance sheet date of the related geographic market. Canada unit counts are as of January 31, 2026.
(2) Includes distribution facilities which are third-party owned and operated.
(3) U.S. distribution facilities are utilized by both the Walmart U.S. and Sam's Club U.S. segments.
We own office facilities in Bentonville, Arkansas, that serve as our principal office and own and lease office facilities throughout the U.S. and internationally for operations as well as for field and market management. The land on which our stores are located is either owned or leased by the Company. Owned retail units on leased land are reflected as leased locations in the table above. We use independent contractors to construct our buildings. All store leases provide for annual rentals, some of which escalate during the original lease or provide for additional rent based on sales volume. Substantially all of the Company's store and club leases have renewal options, some of which include rent escalation clauses. For further information on our distribution network, see the caption "Distribution" under " Item 1. Business ."
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ITEM 3. LEGAL PROCEEDINGS

I. SUPPLEMENTAL INFORMATION: The Company is involved in legal proceedings arising in the normal course of its business, including litigation, arbitration and other claims, and investigations, inspections, subpoenas, audits, claims, inquiries and similar actions by governmental authorities. We discuss certain legal proceedings in Note 9 to our Consolidated Financial Statements included in " Item 8. Financial Statements and Supplementary Data ," which is captioned "Contingencies," under the sub-caption "Legal Proceedings." We refer you to that discussion for important information concerning those legal proceedings, including the basis for such actions and, where known, the relief sought. We provide the following additional information concerning those legal proceedings, including the name of the lawsuit, the court in which the lawsuit is pending, and the date on which the petition commencing the lawsuit or appeal was filed, in addition to disclosure of certain other legal matters.
Opioid-Related Litigation: In re National Prescription Opiate Litigation (MDL No. 2804) (the "MDL") is pending in the U.S. District Court for the Northern District of Ohio and includes approximately 230 cases with claims against the Company as of March 6, 2026. In addition, the following 13 other opioid-related cases against the Company and its subsidiaries were pending in U.S. state and federal courts and Canadian courts as of March 6, 2026: Baby Doe 1, et al. v. Allergan Finances, LLC, et al., U.S. Dist. Ct., E.D. Tenn., 4/29/25; Marshall Cty. Bd. of Educ., et al. v. Cephalon, Inc., et al., U.S. Dist. Ct., N.D. W. Va., 10/28/24; Reiner v. CVS Pharm., Inc., et al., Nev. 5th Jud. Dist. Ct., Nye Cty., 2/26/24; Chaney v. CVS Pharm., Inc., et al., Ky. Cir. Ct., Perry Cty., 12/11/23; City of Grande Prairie, et al. v. Apotex Inc., et al., Alta. King's Bench Ct., Calgary Jud. Ctr., 4/27/23; Lac La Ronge Indian Band, et al. v. Apotex Inc., et al., Sask. King's Bench Ct., Prince Albert Jud. Ctr., 3/17/23; Commonwealth of Pennsylvania ex rel. Allegheny Cty. Dist. Att'y Stephen A. Zappala, Jr. v. CVS Ind., LLC, et al., Pa. Ct. Com. Pl., Delaware Cty., 8/8/22; Baby Doe, et al., ex rel. Their Guardian Ad Litem v. Endo Health Sols., Inc., et al., U.S. Dist. Ct., M.D. Tenn., 8/3/22; Paynter ex rel. Minor Child(ren) Z.N.B. v. McKesson Corp., et al., W. Va. Cir. Ct., Kanawha Cty., 3/28/22; Blankenship ex rel. Minor Child Z.D.B. v. McKesson Corp., et al., W. Va. Cir. Ct., Kanawha Cty., 1/14/22; Miss. Baptist Med. Ctr. Inc., et al. v. Amneal Pharm., LLC, et al., Miss. 1st Jud. Dist., Hinds Cty. Cir. Ct., 5/15/20; Dallas Cty. Hosp. Dist. d/b/a Parkland Health & Hosp. Sys., et al., v. Amneal Pharm., LLC, et al., Tex. Dist. Ct., 152nd Jud. Dist., Harris Cty., 11/20/19; Fla. Health Scis. Ctr., Inc., et al. v. Sackler, et al., Fla. Cir. Ct., 17th Jud. Cir., Broward Cty., 9/16/19.
DOJ Opioid Civil Litigation: United States of America v. Walmart Inc., et al., USDC, Dist. of DE, 12/22/20.
Settlement of Certain Opioid-Related Matters: As described in more detail in Note 9 to our Consolidated Financial Statements, the Company accrued a liability of approximately $3.3 billion in fiscal year 2023 for certain opioid-related settlements. As of January 31, 2025, all of the accrued liability has been paid.
False Claims Act Litigation: United States of America ex rel. James Marcilla and Isela Chavez , USDC, Dist. of N.M., 8/23/19, transferred to USDC Dist. of DE 7/25/24.
ASDA Equal Value Claims: Ms S Brierley & Others v. ASDA Stores Ltd (2406372/2008 & Others – Manchester Employment Tribunal); Abbas & Others v Asda Stores limited (KB-2022-003243); and Abusubih & Others v Asda Stores limited (KB-2022-003240).
Federal Trade Commission and State Attorneys General Driver Platform Litigation: Federal Trade Commission, et al. v. Walmart Inc. , USDC, N.D. Cal., 2/26/26 .
Mexico Antitrust Matter: Comisión Federal de Competencia Económica of México, Investigative Authority v. Nueva Wal-Mart de México, S.de R.L. de C.V. (Docket IO-002-2020, consolidated with Docket DE-026-2020), Mexico, 10/6/23.
India Antitrust Matter: Competition Commission of India, Case No. 40 of 2019, order initiating investigation 1/13/20.
II. ENVIRONMENTAL MATTERS: Item 103 of SEC Regulation S-K requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings and such proceedings involve potential monetary sanctions that the Company reasonably believes will exceed $1 million.
In October 2023, the Company received a Finding of Violation from the U.S. Environmental Protection Agency (the "EPA") alleging violations of the Clean Air Act in connection with the Company's refrigeration leak detection and repair program at certain of its facilities. The Company is cooperating with the EPA in its investigation. The EPA may seek to impose monetary and non-monetary penalties for the alleged violations of the Clean Air Act. The Company is unable to predict the final outcome of this matter, but the EPA could seek penalties in excess of $1 million. Although the Company does not believe this matter will have a material adverse effect on its business, financial position, results of operations, or cash flows, the Company can provide no assurance that its business, financial position, results of operations or cash flows will not be materially adversely affected.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.
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PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market for Common Stock
Effective December 9, 2025, the principal market on which Walmart's common stock is listed has been the Nasdaq Global Select Market. Prior to December 9, 2025, Walmart's common stock was listed on the New York Stock Exchange. The common stock trades under the symbol "WMT."
Holders of Record of Common Stock
As of March 11, 2026, there were 185,190 holders of record of Walmart's common stock, although there is a much larger number of beneficial owners.
Stock Performance Chart
This graph compares the cumulative total shareholder return on Walmart's common stock during the five fiscal years ended through fiscal 2026 to the cumulative total returns on the S&P 500 Consumer Discretionary Distribution & Retailing Index and the S&P 500 Index. The comparison assumes $100 was invested on February 1, 2021 in shares of our common stock and in each of the indices shown and assumes all dividends were reinvested.

Fiscal Years Ended January 31,
2021 2022 2023 2024 2025 2026
Walmart Inc. $ 100.00  $ 101.10  $ 105.67  $ 123.22  $ 222.20  $ 272.28 
S&P 500 Index 100.00 123.29 113.16 136.72 172.78 201.03
S&P 500 Consumer Discretionary Distribution & Retailing Index
100.00 108.64 88.85 114.73 161.20 164.12

Issuer Repurchases of Equity Securities
From time to time, the Company repurchases shares of its common stock under share repurchase programs authorized by the Company's Board of Directors. Any repurchased shares are constructively retired and returned to an unissued status. All repurchases during fiscal 2026 were made under the $20.0 billion share repurchase program approved in November 2022, of which authorization for $4.0 billion of share repurchases remained as of January 31, 2026. In February 2026, the Board of Directors approved a new $30.0 billion share repurchase authorization, which has no expiration date or other restrictions limiting the period over which the Company can make repurchases, and beginning February 23, 2026, replaced the remaining capacity under the prior authorization.
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Share repurchase activity under our share repurchase programs, on a trade date basis, for each month in the quarter ended January 31, 2026, was as follows:

Fiscal Period Total Number of
Shares Repurchased
Average Price Paid
per Share
(in dollars)
Total Number of
Shares Repurchased
as Part of Publicly
Announced Plans or
Programs
Approximate Dollar Value of
Shares that May Yet Be
Repurchased Under the
Plans or Programs (1)
(in billions)

November 1-30, 2025 3,187,083  $ 104.48  3,187,083  $ 4.7 
December 1-31, 2025 3,472,099  113.61  3,472,099  4.3 
January 1-31, 2026 3,073,037  116.69  3,073,037  4.0 
Total 9,732,219  9,732,219 

(1) Represents the approximate dollar value of shares that could have been repurchased under the current plan at the end of the month.

ITEM 6. RESERVED

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview
This discussion, which presents our results for the fiscal years ended January 31, 2026 ("fiscal 2026"), January 31, 2025 ("fiscal 2025") and January 31, 2024 ("fiscal 2024"), should be read in conjunction with our Consolidated Financial Statements and the accompanying notes. We intend for this discussion to provide the reader with information that will assist in understanding our financial statements, the changes in certain key items in those financial statements from period to period and the primary factors that accounted for those changes. We also discuss certain performance metrics that management uses to assess the Company's performance. Additionally, the discussion provides information about the financial results of each of the three segments of our business to provide a better understanding of how each of those segments and its results of operations affect the financial condition and results of operations of the Company as a whole.
Throughout this Item 7, we discuss segment operating income, comparable store and club sales and other measures. Management measures the results of the Company's segments using each segment's operating income, including certain corporate overhead allocations, as well as other measures. From time to time, we revise the measurement of each segment's operating income and other measures as determined by the information regularly reviewed by our chief operating decision maker.
In discussing our operating results, the term currency exchange rates refers to the currency exchange rates we use to convert the operating results for countries where the functional currency is not the U.S. dollar into U.S. dollars. We calculate the effect of changes in currency exchange rates as the difference between current period activity translated using the current period's currency exchange rates and the comparable prior year period's currency exchange rates. Additionally, no currency exchange rate fluctuations are calculated for non-USD acquisitions until owned for 12 months. Throughout our discussion, we refer to the results of this calculation as the impact of currency exchange rate fluctuations.
Recent Developments, Macroeconomic Conditions and Potential Impacts
We expect continued uncertainty in our business and the global economy due to the following factors: tariffs and trade restrictions; inflationary trends; fluctuations in global currencies; swings in macroeconomic conditions and their effect on consumer confidence; changes in employment trends; volatility in fuel prices; and supply chain pressures, any of which may impact our results. While we operate in a highly dynamic tariff environment, less than one third of what we sell in the U.S. is imported, with most of our imports coming from China, Mexico, Vietnam, India and Canada. Information on certain risks, factors, and uncertainties that can affect our operating results and an investment in our securities can be found herein under " Item 1A. Risk Factors ."
Our net sales and gross profit margin are influenced in part by our pricing and merchandising strategies in response to cost increases. Those pricing strategies include, but are not limited to: absorbing cost increases instead of passing those cost increases on to our customers and members; reducing prices in certain merchandise categories; focusing on opening price points for certain food categories; and when necessary, passing cost increases on to our customers and members. Merchandising strategies include, but are not limited to: working with our suppliers to reduce product costs and share in absorbing cost increases; focusing on private label brands and smaller pack sizes; earlier-than-usual purchasing and in greater volumes or moderating purchasing in certain categories; and securing ocean carrier and container capacity. These strategies have and may continue to impact gross profit as a percentage of net sales.
In July 2025, the One Big Beautiful Bill Act (the "OBBB Act") was enacted, introducing a series of corporate tax changes in the U.S., including 100% bonus depreciation on qualified property and full expensing for research and development expenditures. The impacts of the OBBB Act were not material to our income tax expense or effective tax rate. Certain provisions decreased cash taxes paid in fiscal 2026 and may change the timing of cash tax payments in future periods.
For a detailed discussion on results of operations by reportable segment, refer to " Results of Operations " below.

Company Performance Metrics
We are committed to helping customers save money and live better through everyday low prices, supported by everyday low costs. At times, we adjust our business strategies to maintain and strengthen our competitive positions in the countries in which we operate. We define our financial priorities as follows:
• Growth - serve customers through a seamless omnichannel experience;
• Margin - improve our operating income margin through productivity initiatives as well as category and business mix; and
• Returns - improve our Return on Investment through margin improvement and disciplined capital spend.
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Growth
Our objective of prioritizing growth means we will focus on serving customers and members however they want to shop through our omnichannel business model. This includes increasing comparable store and club sales through increasing membership at Sam's Club U.S. and through Walmart+, accelerating eCommerce sales growth and expansion of omnichannel initiatives that complement our strategy.
Comparable sales is a metric that indicates the performance of our existing stores and clubs by measuring the change in sales for such stores and clubs, including eCommerce sales, for a particular period over the corresponding period in the previous year. Walmart's definition of comparable sales includes sales from stores and clubs open for the previous 12 months, including remodels, relocations, expansions and conversions, as well as eCommerce sales. We measure the eCommerce sales impact by including all sales initiated digitally, including omnichannel transactions which are fulfilled through our stores and clubs as well as certain other business offerings that are part of our ecosystem, such as our advertising net sales. Comparable sales are also referred to as "same-store" sales by others within the retail industry. The method of calculating comparable sales varies across the retail industry. As a result, our calculation of comparable sales is not necessarily comparable to similarly titled measures reported by other companies.
Our discussion of our comparable sales below refers to our calendar comparable sales calculated using our fiscal calendar, which may result in differences when compared to comparable sales using the retail calendar (also known as the 4-5-4 calendar) as provided in our quarterly earnings releases. We report on comparable sales in the U.S. as we believe it is a meaningful metric within the context of the U.S. retail market where there is a single currency, one inflationary market and generally consistent store and club formats from year to year.
Calendar comparable sales, as well as the impact of fuel, for fiscal 2026 and 2025, were as follows:

  Fiscal Years Ended January 31,
  2026 2025 2026 2025
  With Fuel Fuel Impact
Walmart U.S. 4.3% 4.8% 0.0% (0.1)%
Sam's Club U.S.
2.9% 4.7% (1.9)% (1.5)%

Walmart U.S. comparable sales increased 4.3% and 4.8% in fiscal 2026 and 2025, respectively. Comparable sales in fiscal 2026 were driven by growth in average ticket and transactions, and also reflected growth in unit volumes and strength in all merchandise categories. Comparable sales in fiscal 2025 were driven by growth in transactions and unit volumes, with strong sales in grocery and health and wellness. Walmart U.S. eCommerce sales positively contributed approximately 4.3% and 2.9% to comparable sales for fiscal 2026 and 2025, respectively. This growth reflects continued strength in customer and Walmart+ member engagement with omnichannel offerings, and was primarily driven by store-fulfilled pickup and delivery.
Sam's Club U.S. comparable sales increased 2.9% and 4.7% in fiscal 2026 and 2025, respectively. For fiscal 2026, comparable sales were driven by growth in unit volumes and transactions, reflecting strong sales in grocery, health and wellness and general merchandise. For fiscal 2025, comparable sales were driven by growth in transactions and unit volumes, with strong sales in grocery and health and wellness. Additionally, fiscal 2026 and 2025 growth was partially offset by lower fuel sales, negatively impacting comparable sales by 1.9% and 1.5%, respectively, primarily due to lower fuel prices. Sam's Club U.S. eCommerce sales positively contributed approximately 3.3% and 2.3% to comparable sales for fiscal 2026 and 2025, respectively, which reflects continued strength in member engagement with omnichannel offerings.
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Margin
Our objective of prioritizing margin focuses on growth with a focus on incremental margin accretion through a combination of productivity improvements as well as category and business mix. We invest in technology and process improvements to increase productivity, manage inventory and reduce costs and we operate with discipline by managing expenses and optimizing the efficiency of how we work. We measure operating discipline through expense leverage, which we define as net sales growing at a faster rate than operating, selling, general and administrative ("operating") expenses. Additionally, we focus on our mix of businesses, including expanding our ecosystem in higher margin areas, such as digital advertising. Our objective is to achieve operating income leverage, which we define as growing operating income at a faster rate than net sales.

Fiscal Years Ended January 31,
(Amounts in millions, except unit counts) 2026 2025
Net sales $ 706,413  $ 674,538 
Percentage change from comparable period 4.7  % 5.0  %
Gross profit (1) as a percentage of net sales
24.2  % 24.1  %
Operating expenses as a percentage of net sales
20.9  % 20.7  %
Operating income $ 29,825  $ 29,348 
Operating income as a percentage of net sales 4.2  % 4.4  %

(1) Gross profit defined as net sales less cost of sales.
Gross profit as a percentage of net sales ("gross profit rate") increased 8 and 40 basis points for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increase in fiscal 2026 was primarily driven by the Walmart U.S. segment, due to disciplined inventory management, as well as growth in higher margin businesses globally. The increase in fiscal 2025 was primarily driven by the Walmart U.S. segment, due to managing prices aligned to our competitive historic price gaps, as well as growth in higher margin businesses globally. In both years, the increases were partially offset by mix shifts into lower margin merchandise categories across segments, as well as ongoing channel and format mix shifts in the Walmart International segment.    
Operating expenses as a percentage of net sales increased 20 and 36 basis points for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increase for fiscal 2026 was primarily due to higher self-insured general liability claims expense in the U.S. of approximately $0.9 billion, influenced by rising costs to resolve claims across retail and related industries, a charge of $0.7 billion related to modification of certain share-based compensation arrangements for our PhonePe subsidiary and increased depreciation related to our capital investments. The increase for fiscal 2025 was primarily due to higher variable pay as a result of exceeding planned performance, increased marketing and higher depreciation expenses.
Operating income as a percentage of net sales decreased 13 basis points for fiscal 2026 and increased 15 basis points for fiscal 2025, respectively, primarily due to the factors described above and strong growth in membership income globally.

Returns
As we execute our financial framework, we believe our return on capital will improve over time. We measure return on capital with our return on investment and free cash flow metrics. In addition, we provide returns in the form of share repurchases and dividends, which are discussed in the Liquidity and Capital Resources section.
Return on Assets and Return on Investment
We include Return on Assets ("ROA") and Return on Investment ("ROI") as metrics to assess our return on capital. ROA is the most directly comparable measure based on our financial statements presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") while ROI is considered a non-GAAP financial measure. Management believes ROI is a meaningful metric to share with investors because it helps investors assess how effectively Walmart is deploying its assets. Trends in ROI can fluctuate over time as management balances long-term strategic initiatives with possible short-term impacts.
Our calculation of ROI is considered a non-GAAP financial measure because it uses financial measures that differ from those used in ROA, the most directly comparable GAAP financial measure. ROA is consolidated net income for the period divided by average total assets for the period. We define ROI as operating income plus interest income, depreciation and amortization, and rent expense for the trailing 12 months divided by average invested capital during the period. We consider average invested capital to be the average of our beginning and ending total assets, plus average accumulated depreciation and amortization, less average accounts payable and average accrued liabilities for that period. Although ROI is a standard financial measure, numerous methods exist for calculating a company's ROI. As a result, the method used by management to calculate our ROI may differ from the methods used by other companies to calculate their ROI.
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The calculation of ROA and ROI, along with a reconciliation of ROI to the calculation of ROA, the most comparable GAAP financial measure, is as follows:
  Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025
CALCULATION OF RETURN ON ASSETS
Numerator
Consolidated net income $ 22,270  $ 20,157 
Denominator
Average total assets (1)
$ 272,746  $ 256,611 
Return on assets (ROA) 8.2  % 7.9  %

CALCULATION OF RETURN ON INVESTMENT
Numerator
Operating income $ 29,825  $ 29,348 
+ Interest income 368  483 
+ Depreciation and amortization 14,203  12,973 
+ Rent 2,434  2,347 
= ROI operating income $ 46,830  $ 45,151 

Denominator
Average total assets (1)
$ 272,746  $ 256,611 
  + Average accumulated depreciation and amortization (1)
129,117  121,624 
- Average accounts payable (1)
60,864  57,739 
- Average accrued liabilities (1)
30,266  29,052 

= Average invested capital $ 310,733  $ 291,444 
Return on investment (ROI) 15.1  % 15.5  %

(1) The average is calculated using the account balance at the end of the current and prior comparative periods.

  As of January 31,
  2026 2025 2024
Certain Balance Sheet Data
Total assets $ 284,668  $ 260,823  $ 252,399 
Accumulated depreciation and amortization 134,587  123,646  119,602 
Accounts payable 63,061  58,666  56,812 
Accrued liabilities 31,187  29,345  28,759 

ROA was 8.2% and 7.9% for fiscal 2026 and 2025, respectively. The increase in ROA was primarily due to an increase in net income as a result of net increases in the fair value of our equity and other investments combined with higher operating income, offset by an increase in average total assets due to higher purchases of property and equipment. ROI was 15.1% and 15.5% for fiscal 2026 and 2025, respectively. The decrease in ROI was primarily due to an increase in average invested capital due to higher purchases of property and equipment. ROI benefited from increased operating income due to improved business performance, which was partially offset by the incremental non-cash share-based compensation charge at PhonePe as well as certain legal matters and other business restructuring charges.

Capital Allocation
Our strategy includes allocating the majority of our capital to higher-return areas focused on automation such as eCommerce, supply chain and store and club investments. The following table provides additional detail regarding our capital expenditures:

(Amounts in millions) Fiscal Years Ended January 31,
Allocation of Capital Expenditures 2026 2025
Supply chain, customer-facing initiatives, technology and other
$ 16,468  $ 14,603 
Store and club remodels 5,571  5,552 
New stores and clubs, including expansions and relocations 1,406  450 
Total U.S. $ 23,445  $ 20,605 
Walmart International 3,197  3,178 
Total Capital Expenditures
$ 26,642  $ 23,783 

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Free Cash Flow
Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which measures our ability to generate additional cash from our business operations, is an important financial measure for use in evaluating the Company's financial performance. Free cash flow should be considered in addition to, rather than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. See Liquidity and Capital Resources for discussions of GAAP metrics including net cash provided by operating activities, net cash used in investing activities and net cash used in financing activities.
We define free cash flow as net cash provided by operating activities in a period minus payments for property and equipment made in that period. Walmart's definition of free cash flow is limited in that it does not represent residual cash flows available for discretionary expenditures due to the fact that the measure does not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view free cash flow as a measure that provides supplemental information to our Consolidated Statements of Cash Flows .
Although other companies report their free cash flow, numerous methods may exist for calculating a company's free cash flow. As a result, the method used by management to calculate our free cash flow may differ from the methods used by other companies to calculate their free cash flow.
The following table sets forth a reconciliation of free cash flow, a non-GAAP financial measure, to net cash provided by operating activities, which we believe to be the GAAP financial measure most directly comparable to free cash flow, as well as information regarding net cash used in investing activities and net cash used in financing activities.

  Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025 2024
Net cash provided by operating activities $ 41,565  $ 36,443  $ 35,726 
Payments for property and equipment (26,642) (23,783) (20,606)
Free cash flow $ 14,923  $ 12,660  $ 15,120 

Net cash used in investing activities (1)
$ (26,350) $ (21,379) $ (21,287)
Net cash used in financing activities (13,553) (14,822) (13,414)

(1) "Net cash used in investing activities" includes payments for property and equipment, which is also included in our computation of free cash flow.

The increase in net cash provided by operating activities in fiscal 2026 is primarily due to an increase in cash provided by operating income, lower cash tax payments and the timing of certain payments. Free cash flow for fiscal 2026 increased when compared to fiscal 2025 due to an increase in cash provided by operating income, lower cash tax payments and timing of certain payments, partially offset by an increase of $2.9 billion in capital expenditures to support our omnichannel growth strategy. Net cash provided by operating activities for fiscal 2025 increased when compared to fiscal 2024 primarily due to an increase in cash provided by operating income and lapping the payment of accrued opioid legal charges in the prior year, partially offset by increased inventory purchases. Free cash flow for fiscal 2025 decreased when compared to fiscal 2024 due to an increase of $3.2 billion in capital expenditures to support our omnichannel growth strategy, partially offset by the increase in net cash provided by operating activities described above.
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Results of Operations
Consolidated Results of Operations

Fiscal Years Ended January 31,
(Dollar amounts and retail square feet in millions) 2026 2025 2024
Net sales $ 706,413  $ 674,538  $ 642,637 
Percentage change from comparable period 4.7  % 5.0  % 6.1  %
Membership and other income (1)
6,750  6,447  5,488 
Total revenues
713,163  680,985  648,125 
Percentage change from comparable period 4.7  % 5.1  % 6.0  %
Gross profit (2)
171,018  162,785  152,495 
Operating expenses (2)
147,943  139,884  130,971 
Operating income 29,825  29,348  27,012 
Other (gains) and losses (2,075) 794  3,027 
Consolidated net income $ 22,270  $ 20,157  $ 16,270 

Percentage of net sales
Gross profit 24.2  % 24.1  % 23.7  %
Operating expenses
20.9  % 20.7  % 20.4  %
Operating income 4.2  % 4.4  % 4.2  %

Retail unit counts at period end 10,955  10,771  10,616 
Retail square feet at period end
1,057  1,053  1,053 

(1) Membership and other income includes membership fees and other items such as rental and tenant income, recycling income, gift card breakage income, as well as other income from corporate campus facilities.
(2) Gross profit is defined as net sales less cost of sales. Operating expenses refers to operating, selling, general and administrative expenses.
Our total revenues increased $32.2 billion or 4.7% and $32.9 billion or 5.1% for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. These increases in revenues were primarily due to increases in net sales, which increased $31.9 billion or 4.7% and $31.9 billion or 5.0% for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increases were primarily due to strong positive comparable sales across our U.S. segments and international markets. In fiscal 2026, growth was primarily driven by increases in average ticket and transactions, and also reflected growth in unit volumes, while fiscal 2025 growth was primarily driven by higher transactions and unit volumes. Both years include strength in eCommerce as well as strong sales in grocery and health and wellness, with fiscal 2026 also benefiting from improved sales in general merchandise. Net sales were negatively impacted by $2.8 billion and $3.2 billion of fluctuations in currency exchange rates during fiscal 2026 and 2025, respectively.
Membership and other income increased $0.3 billion and $1.0 billion for fiscal 2026 and 2025, respectively, primarily driven by growth in membership fee revenue globally, partially offset by decreases in certain other income items, including a reduction in recycling income in fiscal 2026.
Our gross profit rate increased 8 and 40 basis points for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increase in fiscal 2026 was primarily driven by the Walmart U.S. segment, due to disciplined inventory management, as well as growth in higher margin businesses globally. The increase in fiscal 2025 was primarily driven by the Walmart U.S. segment, due to managing prices aligned to our competitive historic price gaps, as well as growth in higher margin businesses globally. In both years, the increases were partially offset by mix shifts into lower margin merchandise categories across segments, as well as ongoing channel and format mix shifts in the Walmart International segment.
Our operating expenses as a percentage of net sales increased 20 and 36 basis points for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increase for fiscal 2026 was primarily due to higher self-insured general liability claims expense in the U.S. of approximately $0.9 billion, influenced by rising costs to resolve claims across retail and related industries, a charge of $0.7 billion related to modification of certain share-based compensation arrangements for our PhonePe subsidiary and increased depreciation related to our capital investments. The increase for fiscal 2025 was primarily due to higher variable pay as a result of exceeding planned performance, increased marketing and higher depreciation expenses.
Other gains and losses consist of certain non-operating items, such as changes in the fair value of our investments, which by their nature can fluctuate from period to period. Other gains and losses resulted in a net gain of $2.1 billion and a net loss of $0.8 billion in fiscal 2026 and 2025, respectively, primarily driven by changes in the fair value of our equity and other investments due to fluctuations in their underlying stock prices.
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Our effective income tax rate was 24.4%, 23.4%, and 25.5% for fiscal 2026, 2025 and 2024, respectively. The increase in effective income tax rate in fiscal 2026 compared to fiscal 2025 is primarily due to the share-based compensation charge recorded at the Company's PhonePe subsidiary, which provided no tax benefit. The decrease in effective tax rate in fiscal 2025 compared to fiscal 2024 is primarily due to the tax impact on changes in fair value of our investments. Our effective income tax rate may also fluctuate as a result of various factors, including changes in our assessment of unrecognized tax benefits, valuation allowances, business operations, acquisitions, investments, entry into new businesses and geographies, intercompany transactions, changes in tax law, changes in the administrative practices, principles, and interpretations related to tax, and the mix and size of earnings among our U.S. operations and international operations, which are subject to statutory rates that are generally higher than the U.S. statutory rate. The reconciliation from the U.S. statutory rate to the effective income tax rates for fiscal 2026, 2025 and 2024 is provided in Note 8 .
As a result of the factors discussed above, we reported $22.3 billion and $20.2 billion of consolidated net income for fiscal 2026 and 2025, respectively, which represent increases of $2.1 billion and $3.9 billion for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. Diluted net income per common share attributable to Walmart ("EPS") was $2.73, $2.41 and $1.91 for fiscal 2026, 2025 and 2024, respectively.

Walmart U.S. Segment

  Fiscal Years Ended January 31,
(Dollar amounts and retail square feet in millions) 2026 2025 2024
Net sales $ 482,975  $ 462,415  $ 441,817 
Net sales percentage change from comparable period 4.4  % 4.7  % 5.1  %
Calendar comparable sales increase 4.3  % 4.8  % 5.5  %
Membership and other income
2,624  2,594  1,985 
Gross profit 132,615  125,964  118,254 
Operating expenses
110,081  104,676  98,085 
Operating income $ 25,158  $ 23,882  $ 22,154 

Percentage of net sales
Gross profit 27.5  % 27.2  % 26.8  %
Operating expenses
22.8  % 22.6  % 22.2  %
Operating income 5.2  % 5.2  % 5.0  %

Retail unit counts at period end 4,611 4,605 4,615
Retail square feet at period end 699 698 699

Net sales for the Walmart U.S. segment increased $20.6 billion or 4.4% and $20.6 billion or 4.7% for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increases in net sales were primarily due to increases in comparable sales of 4.3% and 4.8% for fiscal 2026 and 2025, respectively. Comparable sales in fiscal 2026 were driven by growth in average ticket and transactions, and also reflected growth in unit volumes and strength in all merchandise categories. Comparable sales in fiscal 2025 were driven by growth in transactions and unit volumes, with strong sales in grocery and health and wellness. Walmart U.S. eCommerce sales positively contributed approximately 4.3% and 2.9% to comparable sales for fiscal 2026 and 2025, respectively. This growth reflects continued strength in customer and Walmart+ member engagement with omnichannel offerings, and was primarily driven by store-fulfilled pickup and delivery.
Membership and other income increased slightly for fiscal 2026 and increased $0.6 billion for fiscal 2025. In both years, the increases were primarily driven by double-digit growth in membership fee revenue from Walmart+. For fiscal 2026, the increase was partially offset by decreases in certain other income items, including a reduction in recycling income. Fiscal 2025 also benefited from higher recycling income compared to the previous fiscal year.
Gross profit rate increased 22 and 47 basis points for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increase for fiscal 2026 was primarily driven by disciplined inventory management and growth in higher margin businesses, partially offset by mix shifts into lower margin merchandise categories. The increase for fiscal 2025 was primarily due to managing prices aligned to our competitive historic price gaps and growth in higher margin businesses, partially offset by product mix shifts into lower margin categories.
Operating expenses as a percentage of segment net sales increased 15 and 44 basis points for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increase for fiscal 2026 was primarily due to higher self-insured general liability claims expense and increased depreciation related to our capital investments. For fiscal 2025, the increase was primarily due to increased marketing expenses, higher variable pay as a result of exceeding planned performance and increased depreciation expenses.
As a result of the factors discussed above, segment operating income increased $1.3 billion and $1.7 billion for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year.
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Walmart International Segment
  Fiscal Years Ended January 31,
(Dollar amounts and retail square feet in millions)
2026 2025 2024
Net sales $ 130,423  $ 121,885  $ 114,641 
Percentage change from comparable period 7.0  % 6.3  % 13.5  %
Membership and other income 1,565  1,478  1,408 
Gross profit 27,847  26,618  24,810 
Operating expenses
24,309  22,595  21,309 
Operating income $ 5,103  $ 5,501  $ 4,909 

Percentage of net sales
Gross profit 21.4  % 21.8  % 21.6  %
Operating expenses
18.6  % 18.5  % 18.6  %
Operating income 3.9  % 4.5  % 4.3  %

Retail unit counts at period end 5,743  5,566  5,402 
Retail square feet at period end 278  274  274 

Net sales for the Walmart International segment increased $8.5 billion or 7.0% and $7.2 billion or 6.3% for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. Net sales growth was primarily due to positive comparable sales growth across our international markets, which includes strong eCommerce growth of $6.3 billion and $4.7 billion for fiscal 2026 and 2025, respectively. The increases were partially offset by negative fluctuations in currency exchange rates of $2.8 billion and $3.2 billion for fiscal 2026 and 2025, respectively.
Gross profit rate decreased 49 basis points for fiscal 2026 and increased 20 basis points for fiscal 2025, when compared to the previous fiscal year. For fiscal 2026, the decrease was primarily due to ongoing channel and format mix shifts, as well as strategic growth investments in price and delivery capabilities, partially offset by growth in higher margin businesses. The increase in fiscal 2025 was primarily due to improved eCommerce margin and business mix changes, partially offset by ongoing channel and format mix changes.
Operating expenses as a percentage of segment net sales increased 10 basis points for fiscal 2026 and decreased 5 basis points for fiscal 2025, when compared to the previous fiscal year. The increase for fiscal 2026 was primarily due to a charge of $0.7 billion related to PhonePe's modification of certain share-based payment arrangements in contemplation of a potential public offering (refer to Note 3 ), partially offset by strong sales as well as format mix shifts. The decrease for fiscal 2025 was primarily due to increased sales driving expense leverage, partially offset by planned investments in associate wages and strategic priorities in Mexico and Central America.
As a result of the factors discussed above, segment operating income decreased $0.4 billion and increased $0.6 billion for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year.
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Sam's Club U.S. Segment

  Fiscal Years Ended January 31,
(Dollar amounts and retail square feet in millions)
2026 2025 2024
Including Fuel
Net sales $ 93,015  $ 90,238  $ 86,179 
Percentage change from comparable period 3.1  % 4.7  % 2.2  %
Calendar comparable sales increase 2.9  % 4.7  % 2.3  %
Membership and other income 2,525  2,323  2,051 
Gross profit 10,556  10,203  9,431 
Operating expenses
10,639  10,122  9,290 
Operating income $ 2,442  $ 2,404  $ 2,192 

Percentage of net sales
Gross profit 11.3  % 11.3  % 10.9  %
Operating expenses
11.4  % 11.2  % 10.8  %
Operating income 2.6  % 2.7  % 2.5  %

Retail unit counts at period end 601  600  599 
Retail square feet at period end 81  80  80 

Excluding Fuel (1)

Net sales $ 83,744  $ 79,777  $ 75,057 
Percentage change from comparable period 5.0  % 6.3  % 4.7  %
Operating income $ 1,822  $ 1,785  $ 1,659 
Operating income as a percentage of net sales 2.2  % 2.2  % 2.2  %

(1) We believe the "Excluding Fuel" information is useful to investors because it permits investors to understand the effect of the Sam's Club U.S. segment's fuel sales on its results of operations, which are impacted by the volatility of fuel prices. Volatility in fuel prices may continue to impact the operating results of the Sam's Club U.S. segment in the future.
Net sales for the Sam's Club U.S. segment increased $2.8 billion or 3.1% and $4.1 billion or 4.7% for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increases in net sales were primarily due to increases in comparable sales, including fuel, of 2.9% and 4.7% for fiscal 2026 and 2025, respectively. Comparable sales in fiscal 2026 were driven by growth in unit volumes and transactions, reflecting strong sales in grocery, health and wellness and general merchandise. Comparable sales in fiscal 2025 were driven by growth in transactions and unit volumes, with strong sales in grocery and health and wellness. Additionally, fiscal 2026 and 2025 growth was partially offset by lower fuel sales, negatively impacting comparable sales by 1.9% and 1.5%, respectively, primarily due to lower fuel prices. Sam's Club U.S. eCommerce sales positively contributed approximately 3.3% and 2.3% to comparable sales for fiscal 2026 and 2025, respectively, which reflects continued strength in member engagement with omnichannel offerings.
Membership and other income increased 8.7% and 13.3% for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. For fiscal 2026 and 2025, the increases were primarily due to growth in the membership base and Plus penetration. Fiscal 2026 was also positively impacted by additional breakage income related to unredeemed Sam's Cash rewards, while fiscal 2025 was positively impacted by the expiration of a promotional offering offsetting membership fee increases during the fourth quarter of fiscal 2024.
Gross profit rate increased 4 and 37 basis points for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increase for fiscal 2026 was primarily due to operational efficiencies and higher margins in fuel, partially offset by higher eCommerce fulfillment costs and the impact of reorganization charges related to strategic supply chain decisions. The increase for fiscal 2025 was primarily due to improved operational efficiencies related to merchandise flow and increased margins in fuel, partially offset by higher eCommerce fulfillment costs and product mix shifts into lower margin categories.
Operating expenses as a percentage of segment net sales increased 22 and 44 basis points for fiscal 2026 and 2025, respectively, when compared to the previous fiscal year. The increase for fiscal 2026 was primarily due to lower fuel sales and higher self-insured general liability claims expense. The increase for fiscal 2025 was primarily due to increased compensation related expenses, including associate wage investments and higher variable pay as a result of exceeding our planned performance, as well as elevated technology spend.
As a result of the factors discussed above, segment operating income increased slightly for fiscal 2026 and increased $0.2 billion for fiscal 2025, when compared to the previous fiscal year.
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Liquidity and Capital Resources
Liquidity
The strength and stability of our operations have historically supplied us with a significant source of liquidity. Our cash flows provided by operating activities, supplemented with our long-term debt and short-term borrowings, have been sufficient to fund our operations while allowing us to invest in activities that support the long-term growth of our operations. Generally, some or all of the remaining available cash flow has been used to fund dividends on our common stock and share repurchases. We believe our sources of liquidity will continue to be sufficient to fund operations, finance our investment activities, pay dividends and fund our share repurchases for at least the next 12 months and for the foreseeable future.
Net Cash Provided by Operating Activities

Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025 2024
Net cash provided by operating activities $ 41,565  $ 36,443  $ 35,726 

Net cash provided by operating activities increased $5.1 billion for fiscal 2026 when compared to the previous fiscal year. The increase is primarily due to an increase in cash provided by operating income, lower cash tax payments and timing of certain payments. The increase in net cash provided by operating activities for fiscal 2025, when compared to the previous fiscal year, was primarily due to an increase in cash provided by operating income and lapping the payment of accrued opioid legal charges in the prior year, partially offset by increased inventory purchases.
Cash Equivalents and Working Capital Deficit
Cash and cash equivalents were $10.7 billion and $9.0 billion as of January 31, 2026 and 2025, respectively. Our working capital deficit, defined as total current assets less total current liabilities, was $22.6 billion and $17.1 billion as of January 31, 2026 and 2025, respectively. The increase in our working capital deficit was primarily driven by timing of certain payments combined with an increase in short-term borrowings for general corporate purposes, partially offset by increased inventories and receivables related to higher sales growth as well as higher cash balances. We generally operate with a working capital deficit due to our efficient use of cash in funding operations, consistent access to the capital markets and returns provided to our shareholders in the form of payments of cash dividends and share repurchases.
We use intercompany financing arrangements in an effort to ensure cash can be made available in the country in which it is needed with the minimum cost possible. Additionally, from time-to-time, we repatriate earnings and related cash from jurisdictions outside of the U.S. Under current law, repatriations of foreign earnings will generally be free of U.S. federal tax, but may incur other taxes such as withholding or state taxes. We do not expect current local laws, or other existing limitations on anticipated future repatriations of cash amounts held outside the U.S. to have a material effect on our overall liquidity, financial position or results of operations.
As of January 31, 2026 and 2025, cash and cash equivalents of $3.9 billion and $3.3 billion, respectively, may not be freely transferable to the U.S. due to local laws or other restrictions or are subject to the approval of the noncontrolling interest shareholders.
Net Cash Used in Investing Activities

  Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025 2024
Net cash used in investing activities $ (26,350) $ (21,379) $ (21,287)

Net cash used in investing activities generally consisted of capital expenditures. Net cash used in investing activities increased $5.0 billion for fiscal 2026 when compared to the previous fiscal year. The increase is primarily due to the change in net proceeds received from the sale of certain strategic investments as well as increased payments for property and equipment, partially offset by the acquisition of VIZIO for net consideration of $1.9 billion in the prior year. Net cash used in investing activities increased $0.1 billion for fiscal 2025, when compared to the previous fiscal year, primarily due to increased payments for property and equipment as well as the acquisition of VIZIO for net consideration of $1.9 billion, partially offset by net proceeds received from sales of certain strategic investments, including $3.6 billion related to the sale of our JD.com investment.
Capital expenditures
Refer to the " Capital Allocation " section in our Company Performance Metrics for capital expenditure detail for fiscal 2026 and 2025. For the fiscal year ending January 31, 2027 ("fiscal 2027"), we project capital expenditures will be approximately $25 billion to $27 billion, with a focus on technology, supply chain and customer-facing initiatives.
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Net Cash Used in Financing Activities

  Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025 2024
Net cash used in financing activities $ (13,553) $ (14,822) $ (13,414)

Net cash used in financing activities generally consisted of debt transactions, dividends paid, repurchases of Company stock and transactions with noncontrolling interest shareholders. Fiscal 2026 net cash used in financing activities decreased $1.3 billion when compared to the previous fiscal year. The decrease is primarily due to proceeds from new long-term debt issued, higher short-term borrowings in the current fiscal year and lower debt repayments, partially offset by increased share repurchases and higher dividends paid. Fiscal 2025 net cash used in financing activities increased $1.4 billion when compared to the previous fiscal year. The increase was primarily due to lapping debt issuances in the prior fiscal year and increased share repurchases, partially offset by the purchase of certain noncontrolling interests in the prior fiscal year and higher short-term borrowings.
Purchase and Sale of Subsidiary Stoc k
During fiscal 2024, we paid $3.5 billion to acquire shares from certain Flipkart noncontrolling interest holders and settle a $0.9 billion liability to former noncontrolling interest holders of PhonePe in connection with the separation from Flipkart in fiscal 2023. Additionally, we received $0.7 billion related to new rounds of equity funding for the Company's majority owned PhonePe subsidiary.
Short-term Borrowings
We generally utilize the liquidity provided by short-term borrowings to provide funding for our operations, dividend payments, share repurchases, capital expenditures and other cash requirements. The following table includes additional information related to our short-term borrowings for fiscal 2026, 2025 and 2024:
  Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025 2024
Maximum amount outstanding at any month-end $ 10,241  $ 7,232  $ 9,942 
Average daily short-term borrowings 7,031  4,157  4,295 
Annual weighted-average interest rate 4.5  % 5.1  % 5.1  %

Short-term borrowings as of January 31, 2026 and 2025 were $6.6 billion and $3.1 billion, respectively, with weighted-average interest rates of 4.0% and 5.3%, respectively. We also have $15.0 billion of various undrawn committed lines of credit in the U.S. as of January 31, 2026 that provide additional liquidity, if needed. Additionally, we maintain access to various credit facilities outside of the U.S. to further support our Walmart International segment operations, as needed.
As of January 31, 2026, we have $2.0 billion of syndicated and fronted letters of credit available, of which $1.7 billion was issued and represents an unrecorded current obligation.
Long-term Debt
The following table provides the changes in our long-term debt for fiscal 2026:

(Amounts in millions) Long-term debt due within one year Long-term debt Total
Balances as of February 1, 2025 $ 2,598  $ 33,401  $ 35,999 
Proceeds from issuance of long-term debt —  3,983  3,983 
Repayments of long-term debt (2,625) —  (2,625)
Reclassifications of long-term debt 3,569  (3,569) — 
Currency and other adjustments —  809  809 
Balances as of January 31, 2026 $ 3,542  $ 34,624  $ 38,166 

Our total outstanding long-term debt increased $2.2 billion during fiscal 2026, primarily due to issuances of long-term debt. Refer to Note 5 to our Consolidated Financial Statements for details on the issuances of long-term debt.
Estimated contractual interest payments associated with our long-term debt amount to $17.3 billion, with approximately $1.7 billion expected to be paid in fiscal 2027. Estimated interest payments are based on our principal amounts and expected maturities of all debt outstanding as of January 31, 2026, and assumes interest rates remain at current levels for our variable rate instruments.
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Dividends
Our total dividend payments were $7.5 billion, $6.7 billion and $6.1 billion for fiscal 2026, 2025 and 2024, respectively. Effective February 19, 2026, the Company approved the fiscal 2027 annual dividend of $0.99 per share, an increase over the fiscal 2026 annual dividend of $0.94 per share. For fiscal 2027, the annual dividend will be paid in four quarterly installments of $0.2475 per share, according to the following record and payable dates:

Record Date Payable Date
March 20, 2026 April 6, 2026
May 8, 2026 May 26, 2026
August 21, 2026 September 8, 2026
December 11, 2026 January 4, 2027

Company Share Repurchase Program
From time to time, the Company repurchases shares of its common stock under share repurchase programs authorized by the Company's Board of Directors. Any repurchased shares are constructively retired and returned to an unissued status. All repurchases during fiscal 2026 were made under the $20.0 billion share repurchase program approved in November 2022, of which authorization for $4.0 billion of share repurchases remained as of January 31, 2026. In February 2026, the Board of Directors approved a new $30.0 billion share repurchase authorization, which has no expiration date or other restrictions limiting the period over which the Company can make repurchases, and beginning February 23, 2026, replaced the remaining capacity under the prior authorization.
We regularly review share repurchase activity and consider several factors in determining when to execute share repurchases, including, among other things, current cash needs, capacity for leverage, cost of borrowings, our results of operations and the market price of our common stock. We anticipate that a majority of the ongoing share repurchase program will be funded through the Company's free cash flow.
The following table provides, on a settlement date basis, the number of shares repurchased, average price paid per share and total amount paid for share repurchases for fiscal 2026, 2025 and 2024:

Fiscal Years Ended January 31,
(Amounts in millions, except per share data) 2026 2025 2024
Total number of shares repurchased 85.0 61.9 54.6
Average price paid per share $ 95.13  $ 72.72  $ 50.87 
Total amount paid for share repurchases $ 8,088  $ 4,494  $ 2,779 

During fiscal 2026, the Company repurchased $8.1 billion in shares of its common stock, an increase of $3.6 billion as compared to the same period in the previous fiscal year. The increase was primarily driven by opportunistic prices during the first quarter of fiscal 2026 as part of the Company's long-term strategy.
Material Cash Requirements
Material cash requirements from operating activities primarily consist of inventory purchases, employee related costs, taxes, interest and other general operating expenses, which we expect to be primarily satisfied by our cash from operations. Other material cash requirements from known contractual and other obligations include short-term borrowings, long-term debt and related interest payments, leases and purchase obligations. See Note 4 , Note 5 and Note 6 to our Consolidated Financial Statements for information regarding accrued liabilities, outstanding short-term borrowings and long-term debt, and leases, respectively.
As of January 31, 2026, the Company has $41.4 billion of unrecorded purchase obligations outstanding, of which $18.3 billion is due within one year. Purchase obligations include legally binding contracts, such as firm commitments for inventory and utility purchases, as well as commitments to make capital expenditures, software acquisition and license commitments and legally binding service contracts. Contractual obligations for the purchase of goods or services are defined as agreements that are enforceable and legally binding and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Contracts that specify the Company will purchase all or a portion of its requirements of a specific product or service from a supplier, but do not include a fixed or minimum quantity, are excluded from the obligations quantified above. Accordingly, purchase orders for inventory are also excluded as purchase orders represent authorizations to purchase rather than binding agreements. Our purchase orders are based on our current inventory needs and are fulfilled by our suppliers within short time periods. We also enter into contracts for outsourced services; however, the obligations under these contracts are not significant and the contracts generally contain clauses allowing for cancellation without significant penalty. Timing of payments and actual amounts paid may be different depending on the timing of receipt of goods or services or changes to agreed-upon amounts for some obligations.
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Capital Resources
We believe our cash flows from operations, current cash position, short-term borrowings and access to capital markets will continue to be sufficient to meet our anticipated cash requirements and contractual obligations, which includes funding seasonal buildups in merchandise inventories and funding our capital expenditures, acquisitions, dividend payments and share repurchases.
We have strong commercial paper and long-term debt ratings that have enabled and should continue to enable us to refinance our debt as it becomes due at favorable rates in capital markets. As of January 31, 2026, the ratings assigned to our commercial paper and rated series of our outstanding long-term debt were as follows:

Rating agency    Commercial paper    Long-term debt
Standard & Poor's    A-1+    AA
Moody's Investors Service    P-1    Aa2
Fitch Ratings    F1+    AA

Credit rating agencies review their ratings periodically, and therefore, the credit ratings assigned to us by each agency may be subject to revision at any time. Accordingly, we are not able to predict whether our current credit ratings will remain consistent over time. Factors that could affect our credit ratings include changes in our operating performance, the general economic environment, conditions in the retail industry, our financial position, including our total debt and capitalization, and changes in our business strategy. Any downgrade of our credit ratings by a credit rating agency could increase our future borrowing costs or impair our ability to access capital and credit markets on terms commercially acceptable to us. In addition, any downgrade of our current short-term credit ratings could impair our ability to access the commercial paper markets with the same flexibility that we have experienced historically, potentially requiring us to rely more heavily on more expensive types of debt financing. The credit rating agency ratings are not recommendations to buy, sell or hold our commercial paper or debt securities. Each rating may be subject to revision or withdrawal at any time by the assigning rating organization and should be evaluated independently of any other rating. Moreover, each credit rating is specific to the security to which it applies.

Other Matters
In Note 9 to our Consolidated Financial Statements, which is captioned "Contingencies" and appears in Part II of this Annual Report on Form 10-K under the caption " Item 8. Financial Statements and Supplementary Data ," we discuss, under the sub-captions " Settlement of Certain Opioid-Related Matters, " and " Ongoing Opioid-Related Litigation, " certain opioid-related matters, as well as the Prescription Opiate Litigation, and other matters, including certain risks arising therefrom. In that Note 9 , we discuss " Asda Equal Value Claims " the Company's indemnification obligation for the Asda Equal Value Claims matter, " Money Transfer Agent Services Matter," a government investigation by the U.S. Attorney's Office for the Middle District of Pennsylvania into the Company's consumer fraud prevention and anti-money laundering compliance related to the Company's money transfer agent services, as well as matters related to independent contractor drivers on the driver platform under " Driver Platform Matters. " In Note 9 , under " Mexico Antitrust Matter ," we also discuss a quasi-judicial administrative process initiated by COFECE against Walmex and Walmex's related constitutional challenge. In Note 9 , we also discuss a show cause notice and requests issued by the Directorate of Enforcement to Flipkart regarding Foreign Direct Investment rules and regulations in India and an India Antitrust Matter. We reference various legal proceedings related to the Prescription Opiate Litigation, the DOJ Opioid Civil Litigation, Opioids-Related Securities Class Actions and False Claims Act Litigation; Asda Equal Value Claims; Money Transfer Agent Services Matter; Federal Trade Commission and State Attorneys General Driver Platform Litigation; Mexico Antitrust Matter and an India Antitrust Matter in Part I of this Annual Report on Form 10-K under the caption " Item 3. Legal Proceedings ," under the sub-caption " I. Supplemental Information ." We also discuss an environmental matter with the U.S. Environmental Protection Agency in Part I of this Annual Report on Form 10-K under the caption " Item 3. Legal Proce edings ," under the sub caption " II . E nvi ron mental Matters ." The foregoing matters and other matters described elsewhere in this Annual Report on Form 10-K represent contingent liabilities of the Company that may or may not result in the incurrence of a material liability by the Company upon their final resolution.
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Summary of Critical Accounting Estimates
Management strives to report our financial results in a clear and understandable manner, although in some cases accounting and disclosure rules are complex and require us to use technical terminology. In preparing the Company's Consolidated Financial Statements, we follow accounting principles generally accepted in the U.S. These principles require us to make certain estimates and apply judgments that affect our financial position and results of operations as reflected in our financial statements. These judgments and estimates are based on past events and expectations of future outcomes. Actual results may differ from our estimates.
Management continually reviews our accounting policies including how they are applied and how they are reported and disclosed in our financial statements. Following is a summary of our critical accounting estimates and how they are applied in the preparation of the financial statements.
Contingencies
We are involved in a number of legal proceedings and certain regulatory matters. We record a liability when it is probable that a loss has been incurred and the amount is reasonably estimable. We also perform an assessment of the materiality of loss contingencies where a loss is either reasonably possible or it is reasonably possible that a loss could be incurred in excess of amounts accrued. If a loss or an additional loss has at least a reasonable possibility of occurring and the impact on the financial statements would be material, we provide disclosure of the loss contingency in the footnotes to our financial statements. We review all contingencies at least quarterly to determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the loss or the range of the loss can be made. Although we are not able to predict the outcome or reasonably estimate a range of possible losses in certain matters described in Note 9 to our Consolidated Financial Statements and have not recorded an associated accrual related to these matters, an adverse judgment or negotiated resolution in any of these matters could have a material adverse effect on our business, reputation, financial position, results of operations or cash flows.
Uncertain Tax Positions
We are subject to income taxes in the U.S. and numerous foreign jurisdictions. Our tax returns are routinely audited and settlements of issues raised in these audits sometimes affect our tax provisions. The benefits of uncertain tax positions are recorded in our financial statements only after determining a more likely than not probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities. When facts and circumstances change, we reassess these probabilities and record any changes in the financial statements as appropriate. We account for uncertain tax positions by determining the minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. Accordingly, the determination of our uncertain tax positions requires judgment, the use of estimates in certain cases and the interpretation and application of complex tax laws.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk
In addition to the risks inherent in our operations, we are exposed to certain market risks, including changes in interest rates, currency exchange rates and the fair values of certain equity and equity method investments measured on a recurring basis.
The analysis presented below for each of our market risk sensitive instruments is based on a hypothetical scenario used to calibrate potential risk and does not represent our view of future market changes. The effect of a change in a particular assumption is calculated without adjusting any other assumption. In reality, however, a change in one factor could cause a change in another, which may magnify or negate other sensitivities.
Interest Rate Risk
We are exposed to changes in interest rates as a result of our short-term borrowings and long-term debt. We hedge a portion of our interest rate risk by managing the mix of fixed and variable rate debt and by entering into interest rate swaps. For fiscal 2026, the net fair value of our interest rate swaps increased $0.2 billion primarily due to fluctuations in market interest rates.
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The table below provides information about our financial instruments that are sensitive to changes in interest rates. For long-term debt, the table represents the principal cash flows and related weighted-average interest rates by expected maturity dates. For interest rate swaps, the table represents the contractual cash flows and weighted-average interest rates by the contractual maturity date, unless otherwise noted. The notional amounts are used to calculate contractual cash flows to be exchanged under the contracts. The weighted-average variable rates are based upon prevailing market rates as of January 31, 2026.

Expected Maturity Date
(Amounts in millions) Fiscal 2027 Fiscal 2028 Fiscal 2029 Fiscal 2030 Fiscal 2031 Thereafter Total
Liabilities
Short-term borrowings:
Variable rate $ 6,596  $ —  $ —  $ —  $ —  $ —  $ 6,596 
Weighted-average interest rate 4.0  % —  % —  % —  % —  % —  % 4.0  %
Long-term debt (1) :

Fixed rate $ 3,542  $ 2,487  $ 3,389  $ 2,143  $ 2,600  $ 23,255  $ 37,416 
Weighted-average interest rate 2.5  % 3.8  % 3.0  % 4.2  % 5.3  % 4.4  % 4.1  %
Variable rate $ —  $ 750  $ —  $ —  $ —  $ —  $ 750 
Weighted-average interest rate —  % 4.1  % —  % —  % —  % —  % 4.1  %
Interest rate derivatives
Interest rate swaps:
Fixed to variable $ —  $ —  $ 1,250  $ 1,052  $ 469  $ 2,000  $ 4,771 
Weighted-average pay rate —  % —  % 4.0  % 5.4  % 9.8  % 4.1  % 4.9  %
Weighted-average receive rate —  % —  % 1.5  % 3.0  % 7.6  % 1.8  % 2.5  %

(1) Includes deferred loan costs, discounts, fair value hedges, foreign-held debt and secured debt.
As of January 31, 2026, our variable rate borrowings, including the effect of our commercial paper and interest rate swaps, represented 27% of our total short-term and long-term debt. Based on January 31, 2026 debt levels, a 100 basis point change in prevailing market rates would cause our annual interest costs to change by approximately $0.1 billion.
Foreign Currency Risk
We are exposed to fluctuations in currency exchange rates as a result of our investments and operations in countries other than the U.S., as well as our foreign-currency-denominated long-term debt. For fiscal 2026, movements in currency exchange rates and the related impact on the translation of the balance sheets resulted in the $0.8 billion net gain in the currency translation and other category of accumulated other comprehensive loss.
We hedge a portion of our foreign currency risk by entering into currency swaps. The aggregate fair value of these swaps was in a liability position of $0.9 billion and $1.4 billion as of January 31, 2026 and January 31, 2025, respectively. The change in the fair value of these swaps was due to fluctuations in currency exchange rates, primarily due to the strengthening of certain currencies relative to the U.S. dollar in fiscal 2026. The hypothetical result of a uniform 10% weakening in the value of the U.S. dollar relative to other currencies underlying these swaps would have resulted in a change in the value of the swaps of $0.7 billion. A hypothetical 10% change in interest rates underlying these swaps from the market rates in effect as of January 31, 2026 would have resulted in a change in the value of the swaps of $0.1 billion.
In certain countries, we also enter into immaterial foreign currency forward contracts to hedge the purchase and payment of purchase commitments denominated in non-functional currencies.
Investment Risk
We are exposed to investment risk primarily related to changes in the fair value of certain equity investments, including certain immaterial equity method investments where we have elected the fair value option, measured on a recurring basis. As of January 31, 2026, the fair value of these investments was $4.5 billion. Refer to Note 7 for details. As of January 31, 2026, a hypothetical 10% change in the stock price of such investments would have changed the fair value of such investments by approximately $0.4 billion.
47

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Consolidated Financial Statements of Walmart Inc.
For the Fiscal Year Ended January 31, 2026

Table of Contents

Page
Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42 )
49

Consolidated Statements of Income
52

Consolidated Statements of Comprehensive Income
53

Consolidated Balance Sheets
54

Consolidated Statements of Shareholders' Equity
55

Consolidated Statements of Cash Flows
56

Notes to Consolidated Financial Statements
57

48

Report of Independent Registered Public Accounting Firm

To the Shareholders and the Board of Directors of Walmart Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Walmart Inc. (the Company) as of January 31, 2026 and 2025, the related consolidated statements of income, comprehensive income, shareholders' equity and cash flows for each of the three years in the period ended January 31, 2026, and the related notes (collectively referred to as the "Consolidated Financial Statements"). In our opinion, the Consolidated Financial Statements present fairly, in all material respects, the financial position of the Company at January 31, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended January 31, 2026, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of January 31, 2026, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated March 13, 2026 expressed an unqualified opinion thereon.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the Consolidated Financial Statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.

Contingencies

Description of the Matter As described in Note 9 to the Consolidated Financial Statements, at January 31, 2026, the Company is involved in a number of legal proceedings and certain regulatory matters. The Company records a liability for those legal proceedings and regulatory matters when management determines it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company also discloses when it is reasonably possible that a material loss may be incurred. In assessing the probability of occurrence and whether an estimate of loss can be reasonably estimated for a particular legal proceeding, management exercises judgment on matters relevant to each proceeding. Auditing management's accounting for, and disclosure of, loss contingencies was complex and highly judgmental as it involved our assessment of the significant judgments made by management when assessing the probability of loss for contingencies or when determining whether an estimate of the loss or range of loss could be made.

49

How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the identification and evaluation of contingencies. For example, we tested controls over the Company's assessment of the likelihood of loss and the Company's determinations regarding the measurement of loss.

To test the Company's assessment of the probability of loss or determination of an estimate of loss, or range of loss, among other procedures, we read the minutes of the meetings of the board of directors and committees of the board of directors, reviewed documents provided to the Company by certain outside legal counsel, read letters received directly by us from internal and outside legal counsel, evaluated the current status of contingencies based on discussions with internal legal counsel, and obtained representations from management. We also assessed the adequacy of the related disclosures.

/s/ Ernst & Young LLP

We have served as the Company's auditor since 1969.

Rogers, Arkansas
March 13, 2026

50

Report of Independent Registered Public Accounting Firm
To the Shareholders and the Board of Directors of Walmart Inc.
Opinion on Internal Control Over Financial Reporting
We have audited Walmart Inc.'s internal control over financial reporting as of January 31, 2026, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Walmart Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of January 31, 2026, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of January 31, 2026 and 2025, the related consolidated statements of income, comprehensive income, shareholders' equity and cash flows for each of the three years in the period ended January 31, 2026, and the related notes and our report dated March 13, 2026 expressed an unqualified opinion thereon.
Basis for Opinion
The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst & Young LLP
Rogers, Arkansas
March 13, 2026
51

Walmart Inc.
Consolidated Statements of Income

Fiscal Years Ended January 31,
(Amounts in millions, except per share data) 2026 2025 2024
Revenues:
Net sales $ 706,413   $ 674,538   $ 642,637  
Membership and other income 6,750   6,447   5,488  
Total revenues 713,163   680,985   648,125  
Costs and expenses:
Cost of sales 535,395   511,753   490,142  
Operating, selling, general and administrative expenses 147,943   139,884   130,971  
Operating income 29,825   29,348   27,012  
Interest:
Debt 2,318   2,249   2,259  
Finance lease 481   479   424  
Interest income ( 368 ) ( 483 ) ( 546 )
Interest, net 2,431   2,245   2,137  

Other (gains) and losses ( 2,075 ) 794   3,027  
Income before income taxes 29,469   26,309   21,848  
Provision for income taxes 7,199   6,152   5,578  
Consolidated net income 22,270   20,157   16,270  
Consolidated net income attributable to noncontrolling interest ( 377 ) ( 721 ) ( 759 )
Consolidated net income attributable to Walmart $ 21,893   $ 19,436   $ 15,511  

Net income per common share:
Basic net income per common share attributable to Walmart $ 2.74   $ 2.42   $ 1.92  
Diluted net income per common share attributable to Walmart 2.73   2.41   1.91  

Weighted-average common shares outstanding:
Basic 7,983   8,041   8,077  
Diluted 8,022   8,081   8,108  

Dividends declared per common share $ 0.94   $ 0.83   $ 0.76  

See accompanying notes.
52

Walmart Inc.
Consolidated Statements of Comprehensive Income

  Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025 2024
Consolidated net income $ 22,270   $ 20,157   $ 16,270  
Consolidated net income attributable to noncontrolling interest ( 377 ) ( 721 ) ( 759 )
Consolidated net income attributable to Walmart 21,893   19,436   15,511  

Other comprehensive income (loss), net of income taxes 1,009   ( 2,859 ) 944  
Other comprehensive (income) loss attributable to noncontrolling interest ( 174 ) 556   ( 566 )
Other comprehensive income (loss) attributable to Walmart 835   ( 2,303 ) 378  

Comprehensive income, net of income taxes 23,279   17,298   17,214  
Comprehensive income attributable to noncontrolling interest ( 551 ) ( 165 ) ( 1,325 )
Comprehensive income attributable to Walmart $ 22,728   $ 17,133   $ 15,889  

See accompanying notes.
53

Walmart Inc.
Consolidated Balance Sheets

As of January 31,
(Amounts in millions) 2026 2025
ASSETS
Current assets:
Cash and cash equivalents $ 10,727   $ 9,037  
Receivables, net 11,172   9,975  
Inventories 58,851   56,435  
Prepaid expenses and other 4,124   4,011  
Total current assets 84,874   79,458  

Property and equipment, net 136,083   119,993  
Operating lease right-of-use assets
14,750   13,599  
Finance lease right-of-use assets, net 6,123   6,112  
Goodwill 28,735   28,792  
Other long-term assets 14,103   12,869  
Total assets $ 284,668   $ 260,823  

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND SHAREHOLDERS' EQUITY

Current liabilities:
Short-term borrowings $ 6,596   $ 3,068  
Accounts payable 63,061   58,666  

Accrued liabilities 31,187   29,345  
Accrued income taxes 596   608  
Long-term debt due within one year 3,542   2,598  
Operating lease obligations due within one year 1,631   1,499  
Finance lease obligations due within one year 856   800  
Total current liabilities 107,469   96,584  

Long-term debt 34,624   33,401  
Long-term operating lease obligations 13,941   12,825  
Long-term finance lease obligations 5,905   5,923  
Deferred income taxes and other 16,549   14,398  

Commitments and contingencies

Redeemable noncontrolling interest 293   271  

Shareholders' equity:

Common stock 797   802  
Capital in excess of par value 6,816   5,503  
Retained earnings 104,774   98,313  
Accumulated other comprehensive loss ( 12,770 ) ( 13,605 )
Total Walmart shareholders' equity 99,617   91,013  
Nonredeemable noncontrolling interest
6,270   6,408  
Total shareholders' equity
105,887   97,421  
Total liabilities, redeemable noncontrolling interest, and shareholders' equity
$ 284,668   $ 260,823  

See accompanying notes.
54

Walmart Inc.
Consolidated Statements of Shareholders' Equity

Accumulated Total
Capital in Other Walmart Nonredeemable Total
(Amounts in millions) Common Stock Excess of Retained Comprehensive Shareholders' Noncontrolling Shareholders'
Shares Amount Par Value Earnings Loss Equity Interest Equity
Balances as of February 1, 2023 8,080   $ 808   $ 4,430   $ 83,135   $ ( 11,680 ) $ 76,693   $ 7,061   $ 83,754  
Consolidated net income —  —  —  15,511   —  15,511   774   16,285  
Other comprehensive income, net of immaterial income taxes
Currency translation and other before reclassifications, net —  —  —  —  314   314   566   880  
Reclassifications to income, net —  —  —  —  64   64   —  64  
Cash dividends declared ($ 0.76 per share)
—  —  —  ( 6,140 ) —  ( 6,140 ) —  ( 6,140 )
Purchase of Company stock ( 55 ) ( 6 ) ( 150 ) ( 2,635 ) —  ( 2,791 ) —  ( 2,791 )
Cash dividend declared to noncontrolling interest —  —  —  —  —  —  ( 776 ) ( 776 )
Purchase of noncontrolling interest —  —  ( 1,076 ) —  —  ( 1,076 ) ( 1,367 ) ( 2,443 )
Sale of subsidiary stock —  —  562   —  —  562   154   716  
Other 29   3   778   ( 57 ) —  724   76   800  
Balances as of January 31, 2024 8,054   805   4,544   89,814   ( 11,302 ) 83,861   6,488   90,349  
Consolidated net income —  —  —  19,436   —  19,436   766   20,202  
Other comprehensive loss, net of immaterial income taxes
Currency translation and other before reclassifications, net —  —  —  —  ( 2,359 ) ( 2,359 ) ( 556 ) ( 2,915 )
Reclassifications to income, net —  —  —  —  56   56   —  56  
Cash dividends declared ($ 0.83 per share)
—  —  —  ( 6,688 ) —  ( 6,688 ) —  ( 6,688 )
Purchase of Company stock ( 61 ) ( 6 ) ( 230 ) ( 4,241 ) —  ( 4,477 ) —  ( 4,477 )
Cash dividend declared to noncontrolling interest —  —  —  —  —  —  ( 648 ) ( 648 )

Sale of subsidiary stock —  —  169   —  —  169   193   362  
Other 31   3   1,020   ( 8 ) —  1,015   165   1,180  
Balances as of January 31, 2025 8,024   802   5,503   98,313   ( 13,605 ) 91,013   6,408   97,421  
Consolidated net income —  —  —  21,893   —  21,893   426   22,319  
Other comprehensive income, net of immaterial income taxes
Currency translation and other before reclassifications, net —  —  —  —  978   978   174   1,152  
Reclassifications to income, net —  —  —  —  ( 143 ) ( 143 ) —  ( 143 )
Cash dividends declared ($ 0.94 per share)
—  —  —  ( 7,507 ) —  ( 7,507 ) —  ( 7,507 )
Purchase of Company stock ( 85 ) ( 8 ) ( 453 ) ( 7,619 ) —  ( 8,080 ) —  ( 8,080 )
Cash dividend declared to noncontrolling interest —  —  —  —  —  —  ( 418 ) ( 418 )

Sale of subsidiary stock —  —  58   —  —  58   11   69  
Other 30   3   1,708   ( 306 ) —  1,405   ( 331 ) 1,074  
Balances as of January 31, 2026 7,969   797   6,816   104,774   ( 12,770 ) 99,617   6,270   105,887  

See accompanying notes.
55

Walmart Inc.
Consolidated Statements of Cash Flows

Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025 2024
Cash flows from operating activities:
Consolidated net income $ 22,270   $ 20,157   $ 16,270  
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization 14,203   12,973   11,853  
Investment (gains) and losses, net
( 2,016 ) 878   3,193  

Deferred income taxes 2,277   ( 635 ) ( 175 )

Other operating activities 4,079   2,889   2,642  
Changes in certain assets and liabilities, net of effects of acquisitions and dispositions:
Receivables, net ( 1,136 ) ( 1,106 ) ( 797 )
Inventories ( 1,443 ) ( 2,755 ) 2,017  
Accounts payable 1,611   3,228   2,515  
Accrued liabilities 1,607   379   ( 1,324 )
Accrued income taxes 113   435   ( 468 )
Net cash provided by operating activities 41,565   36,443   35,726  

Cash flows from investing activities:
Payments for property and equipment ( 26,642 ) ( 23,783 ) ( 20,606 )
Proceeds from the disposal of property and equipment 106   432   250  
Proceeds from disposal of certain strategic investments
927   4,080   —  

Payments for business acquisitions, net of cash acquired
( 53 ) ( 1,896 ) ( 9 )

Other investing activities ( 688 ) ( 212 ) ( 922 )
Net cash used in investing activities ( 26,350 ) ( 21,379 ) ( 21,287 )

Cash flows from financing activities:
Net change in short-term borrowings 3,523   2,212   512  
Proceeds from issuance of long-term debt 3,983   —   4,967  
Repayments of long-term debt ( 2,625 ) ( 3,468 ) ( 4,217 )

Dividends paid ( 7,507 ) ( 6,688 ) ( 6,140 )
Purchase of Company stock ( 8,088 ) ( 4,494 ) ( 2,779 )
Dividends paid to noncontrolling interest ( 439 ) ( 576 ) ( 763 )
Purchase of noncontrolling interest —   —   ( 3,462 )
Sale of subsidiary stock 111   362   716  
Other financing activities ( 2,511 ) ( 2,170 ) ( 2,248 )
Net cash used in financing activities ( 13,553 ) ( 14,822 ) ( 13,414 )

Effect of exchange rates on cash, cash equivalents and restricted cash 123   ( 641 ) 69  

Net increase (decrease) in cash, cash equivalents and restricted cash 1,785   ( 399 ) 1,094  

Cash, cash equivalents and restricted cash at beginning of year 9,536   9,935   8,841  
Cash, cash equivalents and restricted cash at end of year $ 11,321   $ 9,536   $ 9,935  

Supplemental disclosure of cash flow information:
Income taxes paid $ 5,364   $ 5,884   $ 5,879  
Interest paid 2,793   2,739   2,519  

See accompanying notes.
56

Walmart Inc.
Notes to Consolidated Financial Statements

Note 1. Summary of Significant Accounting Policies
General
Walmart Inc. ("Walmart" or the "Company") is a people-led, technology-powered omnichannel retailer dedicated to helping people around the world save money and live better by providing the opportunity to shop in both retail stores and through eCommerce. Through innovation, the Company is striving to continuously improve a customer-centric experience that seamlessly integrates eCommerce and retail stores in an omnichannel offering that saves time for its customers.
The Company's operations comprise three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S.
Principles of Consolidation
The Consolidated Financial Statements include the accounts of Walmart and its subsidiaries as of and for the fiscal years ended January 31, 2026 ("fiscal 2026"), January 31, 2025 ("fiscal 2025") and January 31, 2024 ("fiscal 2024"). Intercompany accounts and transactions have been eliminated in consolidation. The Company consolidates variable interest entities where it has been determined that the Company is the primary beneficiary of those entities' operations. Investments in common stock or in-substance common stock for which the Company exercises significant influence but does not have control are accounted for under the equity method. These variable interest entities and equity method investments are immaterial to the Company's Consolidated Financial Statements.
The Company's Consolidated Financial Statements are based on a fiscal year ending on January 31 for the United States ("U.S.") and Canadian operations. The Company consolidates all other operations generally using a one-month lag and based on a calendar year. There were no significant intervening events during the month of January 2026 related to the operations consolidated using a lag that materially affected the Consolidated Financial Statements.
Use of Estimates
The Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP"). Those principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Management's estimates and assumptions also affect the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.
Currency Translation
The functional currency of the Company's foreign subsidiaries is generally the local currency in which the subsidiary operates. The assets and liabilities of all international subsidiaries are translated from the respective local currency to the U.S. dollar using exchange rates at the balance sheet date. Related translation adjustments are recorded as a component of accumulated other comprehensive loss. The Company's Consolidated Statements of Income of all international subsidiaries are translated from the respective local currencies to the U.S. dollar using average exchange rates for the period covered by the income statements.
Cash and Cash Equivalents
The Company considers investments with a maturity when purchased of three months or less to be cash equivalents. All credit card, debit card and electronic transfer transactions that process in less than seven days are classified as cash and cash equivalents. The amounts due from banks for these transactions classified as cash and cash equivalents totaled $ 4.4 billion and $ 2.3 billion as of January 31, 2026 and 2025, respectively.
The Company's cash balances are held in various locations around the world. Of the Company's $ 10.7 billion and $ 9.0 billion in cash and cash equivalents as of January 31, 2026 and January 31, 2025, approximately 56 % and 62 % were held outside of the U.S., respectively. Cash and cash equivalents held outside of the U.S. are generally utilized to support liquidity needs in the Company's non-U.S. operations.
The Company uses intercompany financing arrangements in an effort to ensure cash can be made available in the country in which it is needed with the minimum cost possible.
As of January 31, 2026 and 2025, cash and cash equivalents of approximately $ 3.9 billion and $ 3.3 billion, respectively, may not be freely transferable to the U.S. due to local laws, other restrictions or are subject to the approval of the noncontrolling interest shareholders.
57

Receivables
Receivables are stated at their carrying values, net of a reserve for credit losses, and are primarily due from the following: customers, which includes pharmacy insurance companies, advertisers, and banks for customer credit, debit cards and electronic transfer transactions that take in excess of seven days to process; suppliers for marketing or incentive programs; governments for income taxes; and real estate transactions. Net receivables from transactions with customers were $ 4.9 billion and $ 4.4 billion as of January 31, 2026 and January 31, 2025, respectively.
Inventories
The Company utilizes various inventory methods to account for and value its inventories depending upon the nature of the store formats and businesses in each of its segments, resulting in inventories that are recorded at the lower of cost or market or net realizable value, as appropriate.
• Walmart U.S. Segment - Inventories are primarily accounted for under the retail inventory method of accounting ("RIM") to determine inventory cost, using the last-in, first-out ("LIFO") valuation method. RIM generally results in inventory being valued at the lower of cost or market as permanent markdowns are immediately recorded as a reduction of the retail value of inventory.
• Walmart International Segment – Depending on the store format in each market, inventories are generally accounted for using either the RIM or weighted-average cost method, using the first-in, first-out valuation method.
• Sam's Club U.S. Segment - The majority of this segment's inventory is accounted for and valued using the weighted-average cost LIFO method.
For those segments that utilize the LIFO method, the Company records an adjustment each quarter, if necessary, for the projected annual effect of inflation or deflation. These estimates are adjusted to actual results determined at year end for inflation or deflation and inventory levels.
Property and Equipment
Property and equipment are initially recorded at cost. Gains or losses on disposition are recognized as earned or incurred. Costs of major improvements are capitalized, while costs of normal repairs and maintenance are expensed as incurred . The following table summarizes the Company's property and equipment balances and includes the estimated useful lives that are generally used to depreciate the assets on a straight-line basis:

Estimated Useful Lives As of January 31,
(Dollars in millions) (in Years) 2026 2025
Land N/A $ 20,754   $ 19,342  
Buildings and improvements 3 - 40
128,472   117,973  
Fixtures and equipment 2 - 30
85,539   76,226  
Transportation equipment 3 - 15
2,928   2,673  
Construction in progress N/A 18,728   15,403  
Property and equipment 256,421   231,617  
Accumulated depreciation ( 120,338 ) ( 111,624 )
Property and equipment, net $ 136,083   $ 119,993  

Leasehold improvements are depreciated or amortized over the shorter of the estimated useful life of the asset or the remaining expected lease term. Total depreciation and amortization expense for property and equipment, property under finance leases and intangible assets was $ 14.2 billion, $ 13.0 billion and $ 11.9 billion for fiscal 2026, 2025 and 2024, respectively.
Leases
The Company determines whether an arrangement is or contains a lease at the inception of the contract. The Company records right-of-use ("ROU") assets and lease obligations for its finance and operating leases, which are initially recognized based on the discounted future lease payments over the term of the lease. If the rate implicit in the Company's leases is not readily determinable, the Company's applicable incremental borrowing rate is used in calculating the present value of the sum of the lease payments.
Lease term is defined as the non-cancelable period of the lease plus any options to extend or terminate the lease when it is reasonably certain that the Company will exercise the option. The Company has elected not to recognize ROU asset and lease obligations for its short-term leases, which are defined as leases with an initial term of 12 months or less.
For a majority of all classes of underlying assets, the Company has elected to not separate lease from non-lease components. For leases in which the lease and non-lease components have been combined, the variable lease expense includes expenses such as common area maintenance, utilities and repairs and maintenance.
58

Impairment of Long-Lived Assets
Management reviews long-lived assets for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The evaluation is performed at the lowest level of identifiable cash flows, which is at the individual store or club level. Undiscounted cash flows expected to be generated by the related assets are estimated over the assets' useful lives based on updated projections. If the evaluation indicates that the carrying amount of the assets may not be recoverable, any potential impairment is measured based upon the fair value of the related asset or asset group as determined by an appropriate market appraisal or other valuation technique.
Goodwill and Other Acquired Intangible Assets
Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations and is allocated to the appropriate reporting unit when acquired. Other acquired intangible assets are stated at the fair value acquired as determined by a valuation technique commensurate with the intended use of the related asset. Goodwill and indefinite-lived intangible assets are not amortized; rather, they are evaluated for impairment annually and whenever events or changes in circumstances indicate that the value of the asset may be impaired. Definite-lived intangible assets are considered long-lived assets and are amortized on a straight-line basis over the periods that expected economic benefits will be provided.
Goodwill is typically assigned to the reporting unit which consolidates the acquisition. Components within the same reportable segment are aggregated and deemed a single reporting unit if the components have similar economic characteristics. Goodwill and other indefinite-lived acquired intangible assets are evaluated for impairment using either a qualitative or quantitative approach for each of the Company's reporting units. Generally, a qualitative assessment is first performed to determine whether a quantitative goodwill impairment test is necessary. If management determines, after performing an assessment based on the qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, or that a fair value of the reporting unit substantially in excess of the carrying amount cannot be assured, then a quantitative goodwill impairment test would be required. The quantitative test for goodwill impairment is performed by determining the fair value of the related reporting units. Fair value is measured based on the discounted cash flow method and relative market-based approaches. Management has performed its evaluation and determined the fair value of each reporting unit is significantly greater than the carrying amount and, accordingly, the Company has not recorded any impairment charges related to goodwill during fiscal 2026, fiscal 2025 or fiscal 2024.
The following table reflects goodwill activity, by reportable segment, for fiscal 2026 and 2025:

(Amounts in millions) Walmart U.S. Walmart
International Sam's Club U.S.
Total
Balances as of February 1, 2024 $ 3,364   $ 24,428   $ 321   $ 28,113  
Changes in currency translation and other —   ( 696 ) —   ( 696 )
Acquisitions (1)
1,375   —   —   1,375  

Balances as of January 31, 2025 4,739   23,732   321   28,792  
Changes in currency translation and other 53   ( 119 ) —   ( 66 )
Acquisitions —   9   —   9  
Balances as of January 31, 2026 $ 4,792   $ 23,622   $ 321   $ 28,735  

(1) Goodwill recorded in fiscal 2025 relates to the acquisition of VIZIO Holding Corp. in December 2024 within the Walmart U.S. segment.
Intangible assets are recorded in other long-term assets in the Company's Consolidated Balance Sheets . As of January 31, 2026 and 2025, the Company had $ 4.3 billion and $ 4.5 billion, respectively, in indefinite-lived intangible assets which primarily consists of acquired trade names. There were no significant impairment charges related to intangible assets for fiscal 2026, 2025 or 2024.
Fair Value Measurement
The Company records and discloses certain financial and non-financial assets and liabilities at fair value. The fair value of an asset is the price at which the asset could be sold in an orderly transaction between unrelated, knowledgeable and willing parties able to engage in the transaction. The fair value of a liability is the amount that would be paid to transfer the liability to a new obligor in a transaction between such parties, not the amount that would be paid to settle the liability with the creditor. Refer to Note 7 for more information.
Investments
Investments in equity securities are recorded in other long-term assets in the Consolidated Balance Sheets. Changes in the fair value of certain equity securities, as well as certain immaterial equity method investments where the Company has elected the fair value option, are measured on a recurring basis (generally using Level 1 and Level 2 inputs in the fair value hierarchy) and recognized within other gains and losses in the Consolidated Statements of Income. Measurement of equity investments using Level 2 inputs is primarily based on quoted prices for similar securities in active markets. Equity investments without readily
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determinable fair values are carried at cost and adjusted for any observable price changes or impairments within other gains and losses in the Consolidated Statements of Income. Investments in debt securities classified as trading are reported at fair value and included in other long-term assets in the Consolidated Balance Sheets, and adjustments in fair value are recorded within other gains and losses in the Consolidated Statements of Income. The Company's debt investments are immaterial and primarily relate to its retained investment in Asda, the Company's former retail operations in the U.K., the majority of which is mandatorily redeemable in fiscal 2029. The fair value is measured using Level 3 inputs and is primarily estimated by discounting the future cash flows over the remaining period until the mandatory redemption date at an appropriate discount rate reflecting Asda’s credit risk. Refer to Note 7 for details.
Indemnification Liabilities
The Company has provided certain indemnifications in connection with previous divestitures and has recorded indemnification liabilities equal to the estimated fair value of the obligations. As of January 31, 2026 and January 31, 2025, the Company had $ 0.7 billion and $ 0.6 billion, respectively, of certain legal indemnification liabilities recorded within deferred income taxes and other in the Consolidated Balance Sheets. Maximum potential future payments under these indemnities was $ 3.4 billion, based on exchange rates as of January 31, 2026.
Supplier Financing Program Obligations
The Company has supplier financing programs with financial institutions, in which the Company agrees to pay the financial institution the stated amount of confirmed invoices on the invoice due date for participating suppliers. Participation in these programs is optional and solely up to the supplier, who negotiates the terms of the arrangement directly with the financial institution and may allow early payment. Supplier participation in these programs has no bearing on the Company's amounts due. The payment terms that the Company has with participating suppliers under these programs generally range between 30 and 90 days. The Company does not have an economic interest in a supplier's participation in the program or a direct financial relationship with the financial institution funding the program. The Company is responsible for ensuring that participating financial institutions are paid according to the terms negotiated with the supplier, regardless of whether the supplier elects to receive early payment from the financial institution . The rollforward of the Company's outstanding payment obligations to financial institutions under these programs is as follows:

Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025
Confirmed obligations outstanding at the beginning of the year
$ 5,725   $ 5,271  
Invoices confirmed during the year
40,342   41,335  
Confirmed invoices paid during the year
( 40,062 ) ( 40,810 )
Translation and other
( 16 ) ( 71 )
Confirmed obligations outstanding at the end of the year
$ 5,989   $ 5,725  

These obligations are generally classified as accounts payable within the Consolidated Balance Sheets. The activity related to these programs is classified as an operating activity within the Consolidated Statements of Cash Flows.
Self-Insurance Reserves
The Company self-insures a number of risks, including, but not limited to, general liability, workers' compensation, auto liability, product liability and certain employee-related healthcare benefits. Standard actuarial procedures and data analysis are used to estimate the liabilities associated with these risks on an undiscounted basis. The recorded liabilities reflect the ultimate cost for claims incurred but not paid and any estimable administrative run-out expenses related to the processing of these outstanding claim payments. On a regular basis, the liabilities are evaluated for appropriateness with claims reserve valuations. To limit exposure to some risks, the Company maintains insurance coverage with varying limits and retentions, including stop-loss insurance coverage for general liability, workers' compensation and auto liability. Refer to Note 4 for the self-insurance reserves which are recorded in accrued liabilities in the Company's Consolidated Balance Sheets.
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Derivatives
The Company uses derivatives for hedging purposes to manage its exposure to changes in interest and currency exchange rates, as well as to maintain an appropriate mix of fixed- and variable-rate debt. Use of derivatives in hedging programs subjects the Company to certain risks, such as market and credit risks. The Company may be exposed to credit-related losses in the event of nonperformance by its counterparties to derivatives. Credit risk is monitored through established approval procedures, including setting concentration limits by counterparty, reviewing credit ratings and requiring collateral from the counterparty. The Company enters into derivatives with counterparties rated generally "A-" or better by nationally recognized credit rating agencies. The Company is subject to master netting arrangements which provides set-off and close-out netting of exposures with counterparties, but the Company does not offset derivative assets and liabilities in its Consolidated Balance Sheets. The Company's collateral arrangements require the counterparty in a net liability position in excess of pre-determined thresholds, after considering the effects of netting arrangements, to pledge cash collateral. Cash collateral received from counterparties and cash collateral provided to counterparties under these arrangements was not significant as of January 31, 2026 and 2025.
In order to qualify for hedge accounting, at the inception of the hedging relationship, the Company formally documents its risk management objective and strategy for undertaking the hedging transaction, as well as its designation of the hedge. If a derivative is recorded using hedge accounting, depending on the nature of the hedge, derivative gains and losses are recorded through the same financial statement line item in earnings or are recognized in accumulated other comprehensive loss until the hedged item is recognized in earnings. Derivatives that do not meet the criteria for hedge accounting, or contracts for which the Company has not elected hedge accounting, are recorded at fair value with unrealized gains or losses reported in earnings. Derivatives with an unrealized gain are recorded in the Company's Consolidated Balance Sheets as either current or non-current assets, based on maturity date, and derivatives with an unrealized loss are recorded as either current or non-current liabilities, based on maturity date. Refer to Note 7 for the presentation of the Company's derivative assets and liabilities.
Fair Value Hedges
The Company is a party to receive fixed-rate, pay variable-rate interest rate swaps that the Company uses to hedge the fair value of fixed-rate debt. All interest rate swaps designated as fair value hedges of the related long-term debt meet the shortcut method requirements under GAAP. Accordingly, changes in the fair values of these interest rate swaps are considered to exactly offset changes in the fair value of the underlying long-term debt. These derivatives will mature on dates ranging from September 2028 to September 2031.
Cash Flow Hedges
The Company is a party to receive fixed-rate, pay fixed-rate cross currency interest rate swaps used to hedge the currency exposure associated with the forecasted payments of principal and interest of certain non-U.S. denominated debt. The Company records changes in the fair value of these swaps in accumulated other comprehensive loss which is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. These derivatives will mature on dates ranging from April 2026 to January 2039.
Income Taxes
Income taxes are accounted for under the balance sheet method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases ("temporary differences"). Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rate is recognized in income in the period that includes the enactment date.
Deferred tax assets are evaluated for future realization and reduced by a valuation allowance to the extent that a portion is not more likely than not to be realized. Many factors are considered when assessing whether it is more likely than not that the deferred tax assets will be realized, including recent cumulative earnings, expectations of future taxable income, carryforward periods, and other relevant quantitative and qualitative factors. The recoverability of the deferred tax assets is evaluated by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely on estimates.
In determining the provision for income taxes, an annual effective income tax rate is used based on annual income, permanent differences between book and tax income, and statutory income tax rates. Discrete events such as audit settlements or changes in tax laws are recognized in the period in which they occur.
The Company records a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company records interest and penalties related to unrecognized tax benefits in interest expense and operating, selling, general and administrative expenses, respectively, in the Company's Consolidated Statements of Income. Refer to Note 8 for additional income tax disclosures.
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Redeemable Noncontrolling Interest
The Company has a redeemable noncontrolling interest in a subsidiary within the Walmart U.S. segment. The minority interest owner holds a put option which, if exercised, would require the Company to purchase the underlying shares at fair value beginning in December 2027, with annual options thereafter. Redeemable noncontrolling interests are initially recorded at fair value and adjusted each reporting period for income, loss and any distributions made, and are then generally remeasured to the greater of the redemption value or the carrying value of the noncontrolling interest. Remeasurements to the redemption value of the redeemable noncontrolling interest are recognized in capital in excess of par.
Revenue Recognition     
Net Sales
The Company recognizes sales revenue, net of sales taxes and estimated sales returns, at the time it sells merchandise or provides services to the customer. eCommerce sales include shipping revenue and are recorded upon delivery to the customer. Estimated sales returns are calculated based on expected returns.
Financial, Advertising and Other Services
The Company recognizes revenue from service transactions at the time the service is performed. Generally, revenue from services is classified as a component of net sales in the Company's Consolidated Statements of Income.
Membership and Other Income
Membership and other income primarily includes membership fee revenue associated with the Company's various membership offerings for customers and members across each reportable segment. Membership fee revenue is recognized over the term of the membership, which are generally one year, although certain offerings are month-to month. Membership fee revenue was $ 4.4 billion, $ 3.8 billion and $ 3.1 billion for fiscal 2026, 2025 and 2024, respectively. Deferred membership fee revenue is included in accrued liabilities in the Company's Consolidated Balance Sheets. Additionally, membership and other income includes items such as rental and tenant income, recycling income, and gift card breakage income.
Gift Cards
Customer purchases of gift cards are not recognized as sales until the card is redeemed and the customer purchases merchandise using the gift card, thus a liability for deferred gift card revenue is recorded within accrued liabilities in the Consolidated Balance Sheets. Refer to Note 4 . Gift cards in the U.S. and some countries do not carry an expiration date; therefore, customers and members can redeem their gift cards for merchandise and services indefinitely. Gift cards in some countries where the Company does business have expiration dates. While gift cards are generally redeemed within 12 months, a certain number of gift cards, both with and without expiration dates, will not be fully redeemed. Management estimates unredeemed balances and recognizes gift card breakage income for these amounts in membership and other income in the Company's Consolidated Statements of Income over the expected redemption period.
Cost of Sales
Cost of sales includes costs of merchandise sold and services performed; costs of transporting merchandise to the Company's distribution facilities, stores, clubs, and customers; and also includes warehousing costs for the Sam's Club U.S. segment and import distribution centers. Cost of sales is reduced by supplier payments, except in certain situations as described below.
Payments from Suppliers
The Company receives consideration from suppliers for various programs, primarily volume incentives, warehouse allowances and reimbursements for specific programs such as markdowns, margin protection, certain advertising arrangements and supplier-specific fixtures. Payments from suppliers are accounted for as a reduction of cost of sales and recognized in the Company's Consolidated Statements of Income when the related inventory is sold, except in situations when the payment is in exchange for a distinct good or service or a reimbursement of specific, incremental and identifiable costs.
Operating, Selling, General and Administrative Expenses
Operating, selling, general and administrative expenses include all operating costs of the Company (except cost of sales, as described above), which comprise substantially all labor-related, depreciation and amortization, maintenance and repairs, utilities, and other general operating costs incurred in stores, clubs and other facilities. The majority of the cost of warehousing and occupancy for the Walmart U.S. and Walmart International segments' distribution facilities is included in operating, selling, general and administrative expenses. Because the Company only includes a portion of the cost of its Walmart U.S. and Walmart International segments' distribution facilities in cost of sales, its gross profit and gross profit as a percentage of net sales may not be comparable to those of other retailers that may include all costs related to their distribution facilities in cost of sales and in the calculation of gross profit.
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As a result, the Company’s cost of sales and operating, selling, general and administrative expenses for each of its reportable segments may not be comparable to those of other retailers.
Advertising Costs
Advertising costs are expensed as incurred, and consist primarily of digital, television and print advertisements that are recorded in operating, selling, general and administrative expenses in the Company's Consolidated Statements of Income. Advertising costs were $ 5.4 billion, $ 5.1 billion and $ 4.4 billion for fiscal 2026, 2025 and 2024, respectively.
Other Comprehensive Income
Other comprehensive income or loss is recorded in accumulated other comprehensive loss as a component of shareholders' equity and primarily consists of foreign currency translation adjustments from foreign subsidiaries where the functional currency is not the U.S. dollar, as well as unrealized gains and losses on cash flow hedges which are not significant. Amounts reclassified from accumulated other comprehensive loss into earnings primarily relate to cross-currency swaps to hedge the changes in cash flows of certain foreign currency denominated debt and are recorded against the hedged item in operating, selling, general and administrative expenses in the Company's Consolidated Statements of Income. Certain amounts are also reclassified from accumulated other comprehensive loss into earnings and are recorded against the hedged item in interest, net in the Company's Consolidated Statements of Income.
Recent Accounting Pronouncements
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which expands the requirements for income tax disclosures in order to provide greater transparency. The amendments are effective for fiscal years beginning after December 15, 2024. The amendments should be applied prospectively, although optional retrospective application is permitted. Management has adopted the amendments prospectively for the fiscal year ending January 31, 2026. See Note 8 for the expanded disclosures.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , which requires incremental disclosures about specific expense categories, including but not limited to, purchases of inventory, employee compensation, depreciation, amortization and selling expenses. The amendments are effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted and the amendments may be applied either prospectively or retrospectively. Management is currently evaluating this ASU to determine its impact on the Company's disclosures. The amendments only impact disclosures and are not expected to have an impact on the Company's financial condition and results of operations.

Note 2. Net Income Per Common Share
Basic net income per common share attributable to Walmart is based on the weighted-average common shares outstanding during the relevant period. Diluted net income per common share attributable to Walmart is based on the weighted-average common shares outstanding during the relevant period adjusted for the dilutive effect of share-based awards as determined under the treasury stock method. The Company did not have significant share-based awards outstanding that were antidilutive and not included in the calculation of diluted net income per common share attributable to Walmart for fiscal 2026, 2025 and 2024.
The following table provides a reconciliation of the numerators and denominators used to determine basic and diluted net income per common share attributable to Walmart:

Fiscal Years Ended January 31,
(Amounts in millions, except per share data) 2026 2025 2024
Numerator
Consolidated net income $ 22,270   $ 20,157   $ 16,270  
Consolidated net income attributable to noncontrolling interest ( 377 ) ( 721 ) ( 759 )
Consolidated net income attributable to Walmart $ 21,893   $ 19,436   $ 15,511  

Denominator
Weighted-average common shares outstanding, basic 7,983   8,041   8,077  
Dilutive impact of share-based awards 39   40   31  
Weighted-average common shares outstanding, diluted 8,022   8,081   8,108  

Net income per common share attributable to Walmart
Basic $ 2.74   $ 2.42   $ 1.92  
Diluted 2.73   2.41   1.91  

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Note 3. Shareholders' Equity
The total authorized shares of $ 0.10 par value common stock is 33.0  billion, of which 8.0 billion were issued and outstanding as of January 31, 2026 and 2025. The total authorized shares of $ 0.10 par value preferred stock is 0.1 billion; none of which were issued or outstanding for any period presented.
Noncontrolling Interest
During fiscal 2026, the Company's PhonePe subsidiary modified certain of its share-based payment arrangements in contemplation of a potential initial public offering. Upon modification, the Company recorded a non-cash charge of $ 0.7  billion (a portion of which was based on grant-date fair value) in operating, selling, general and administrative expenses within the Walmart International segment, primarily related to previously unrecognized share-based compensation expense under these arrangements. Following the modification, certain PhonePe employee-held options were vested and exercised (including certain previously vested awards), which decreased the Company's ownership in PhonePe from approximately 84 % as of January 31, 2025 to approximately 73 % as of January 31, 2026.
During fiscal 2024, the Company paid $ 3.5  billion to acquire shares from certain Flipkart noncontrolling interest holders and settle a $ 0.9  billion liability to former noncontrolling interest holders of PhonePe in connection with the separation from Flipkart in fiscal 2023. The Company's ownership of Flipkart increased from approximately 75 % as of January 31, 2023 to approximately 85 % as of January 31, 2024.
Also during fiscal 2024, the Company received $ 0.7  billion related to new rounds of equity funding for the Company's majority owned PhonePe subsidiary, which decreased the Company's ownership from approximately 89 % as of January 31, 2023 to approximately 84 % as of January 31, 2024.
Share-Based Compensation
The Company has awarded share-based compensation to associates and nonemployee directors of the Company. The compensation expense recognized for all stock incentive plans, including expense associated with plans of the Company's consolidated subsidiaries granted in the subsidiaries' respective stock, was $ 3.6  billion, $ 2.8 billion and $ 2.1 billion for fiscal 2026, 2025 and 2024, respectively. Share-based compensation expense is generally included in operating, selling, general and administrative expenses in the Company's Consolidated Statements of Income. The total income tax benefit recognized for share-based compensation was $ 0.9 billion, $ 0.7 billion and $ 0.5 billion for fiscal 2026, 2025 and 2024, respectively. The following table summarizes the Company's share-based compensation expense by award type for all plans:

  Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025 2024
Restricted stock units $ 2,028   $ 1,909   $ 1,258  
Restricted stock and performance-based restricted stock units 587   632   609  
Other 988   228   226  
Share-based compensation expense $ 3,603   $ 2,769   $ 2,093  

The Walmart Inc. Stock Incentive Plan of 2025 (the "Plan") was approved by the Company's shareholders in June 2025, which amended and restated the Company's Stock Incentive Plan of 2015. The Plan provides for the issuance of stock options, restricted (non-vested) stock, restricted stock units, performance share units and other equity compensation awards for which 215 million shares of Walmart common stock issued or to be issued under the Plan have been registered under the Securities Act of 1933. The Company believes that such awards serve to align the interests of its associates with those of its shareholders.
The Plan's award types are summarized as follows:
• Restricted Stock Units. Restricted stock units provide rights to Company stock after a specified service period. Beginning in fiscal 2023, restricted stock units generally vest at a rate of approximately 8 % each quarter over a three year period from the date of grant. For grants made from fiscal 2020 through fiscal 2022, restricted stock units generally vest at a rate of 25 % each year over a four year period from the date of the grant. The fair value of each restricted stock unit is determined on the date of grant using the stock price discounted for the expected dividend yield through the vesting period and is recognized ratably over the vesting period. The expected dividend yield is based on the anticipated dividends over the vesting period. The weighted-average discount for the dividend yield used to determine the fair value of restricted stock units granted in fiscal 2026, 2025 and 2024 was 1.5 %, 2.0 % and 2.2 %, respectively.
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• Restricted Stock and Performance-based Restricted Stock Units. Restricted stock awards are for shares that vest based on the passage of time and include restrictions related to employment. Performance-based restricted stock units generally vest based on a one-year performance period followed by a two-year vesting period based on the passage of time. Vesting conditions during the performance period are based on achieving pre-established financial goals for metrics related to growth and returns and generally range from 0 % to 150 % of the original award amount. Vesting periods for restricted stock are generally between one month and three years . Vesting periods for performance-based restricted stock units are generally between one and three years . Restricted stock and performance-based restricted stock units may be settled or, in certain circumstances, deferred and are accounted for as equity in the Company's Consolidated Balance Sheets. The fair value of restricted stock awards is determined on the date of grant and is expensed ratably over the vesting period. The fair value of performance-based restricted stock units is determined on the date of grant using the Company's stock price discounted for the expected dividend yield through the vesting period and is recognized over the vesting period if it is probable that performance conditions will be achieved. The weighted-average discount for the dividend yield used to determine the fair value of performance-based restricted stock units in fiscal 2026, 2025 and 2024 was 2.4 %, 3.2 % and 3.3 %, respectively.
In addition to the Plan, certain of the Company's subsidiaries have share-based compensation plans for associates under which options to acquire their own common shares are issued. Share-based compensation expense associated with these plans is reflected in the Other line in the table above, which also includes the $ 0.7  billion impact related to the modification of certain PhonePe share-based payment arrangements described above.
The following table shows the activity for restricted stock units and restricted stock and performance-based restricted stock units during fiscal 2026:

Restricted Stock Units Restricted Stock and
Performance-based Restricted Stock Units
(Shares in thousands) Shares Weighted-Average Grant-Date Fair Value Per Share Shares Weighted-Average Grant-Date Fair Value Per Share
Outstanding as of February 1, 2025 51,758   $ 55.72   20,960   $ 54.88  
Granted 27,741   87.95   7,271   94.84  
Adjustment for performance achievement (1)
—   —   2,580   60.54  
Vested/exercised ( 35,426 ) 59.93   ( 12,165 ) 53.56  
Forfeited ( 6,917 ) 65.46   ( 2,556 ) 57.05  
Outstanding as of January 31, 2026 37,156   $ 73.96   16,090   $ 74.50  

(1) Represents the adjustment to previously granted performance share units for performance achievement.
The following table includes additional information related to restricted stock units and restricted stock and performance-based restricted stock units:  

  Fiscal Years Ended January 31,
(Amounts in millions, except years) 2026 2025 2024
Fair value of restricted stock units vested $ 2,111   $ 1,848   $ 1,345  
Fair value of restricted stock and performance-based restricted stock units vested 652   602   477  
Unrecognized compensation cost for restricted stock units 2,239   2,243   1,686  
Unrecognized compensation cost for restricted stock and performance-based restricted stock units 670   669   656  
Weighted average remaining period to expense for restricted stock units (years) 0.8 0.9 0.9
Weighted average remaining period to expense for restricted stock and performance-based restricted stock units (years) 1.3 1.3 1.3

As of January 31, 2026, the Company also has approximately $ 3 billion in unrecognized compensation cost (based on grant-date fair value) primarily associated with share-based compensation plans of certain subsidiaries which contain performance or other conditions including vesting upon an initial public offering. If such conditions are ultimately satisfied, unrecognized compensation cost would be recognized in the applicable reporting period.
Share Repurchase Program
From time to time, the Company repurchases shares of its common stock under share repurchase programs authorized by the Company's Board of Directors. All repurchases during fiscal 2026 were made under the current $ 20.0  billion share repurchase program approved in November 2022, which had no expiration date or other restrictions limiting the period over which the Company can make repurchases. As of January 31, 2026 authorization for $ 4.0 billion of share repurchases remained under the share repurchase program. Any repurchased shares are constructively retired and returned to an unissued status. In February 2026, the Board of Directors approved a new $ 30.0  billion share repurchase authorization, which has no expiration date or other restrictions limiting the period over which the Company can make repurchases, and beginning February 23, 2026, replaced the remaining capacity under the prior authorization.
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The Company regularly reviews share repurchase activity and considers several factors in determining when to execute share repurchases, including, among other things, current cash needs, capacity for leverage, cost of borrowings, results of operations and the market price of the Company's common stock. The following table provides, on a settlement date basis, the number of shares repurchased, average price paid per share and total amount paid for share repurchases for fiscal 2026, 2025 and 2024:

Fiscal Years Ended January 31,
(Amounts in millions, except per share data) 2026 2025 2024
Total number of shares repurchased 85.0   61.9   54.6  
Average price paid per share $ 95.13   $ 72.72   $ 50.87  
Total cash paid for share repurchases $ 8,088   $ 4,494   $ 2,779  

Note 4. Accrued Liabilities
The Company's accrued liabilities consist of the following as of January 31, 2026 and 2025:

  January 31,
(Amounts in millions) 2026 2025
Accrued wages and benefits (1)
$ 7,878   $ 7,897  
Self-insurance (2)
5,525   4,976  
Accrued non-income taxes (3)
4,110   3,503  
Deferred gift card revenue 2,941   2,755  
Other (4)
10,733   10,214  
Total accrued liabilities $ 31,187   $ 29,345  

(1) Accrued wages and benefits include accrued wages, salaries, vacation, bonuses and other incentive plans.
(2) Self-insurance consists of insurance-related liabilities, such as general liability, workers' compensation, auto liability, product liability and certain employee-related healthcare benefits.
(3) Accrued non-income taxes include accrued payroll, property, value-added, sales and miscellaneous other taxes.
(4) Other accrued liabilities includes items such as deferred membership revenue, interest, supply chain, advertising, and maintenance and utilities.

Note 5. Short-term Borrowings and Long-term Debt
Short-term borrowings consist of commercial paper and lines of credit. Short-term borrowings as of January 31, 2026 and 2025 were $ 6.6 billion and $ 3.1 billion, respectively, with weighted-average interest rates of 4.0 % and 5.3 %, respectively.
The Company has various committed lines of credit in the U.S. to support its commercial paper program which are summarized in the following table:

January 31, 2026 January 31, 2025
(Amounts in millions) Available Drawn Undrawn Available Drawn Undrawn
Five -year credit facility (1)
$ 5,000   $ —   $ 5,000   $ 5,000   $ —   $ 5,000  
364 -day revolving credit facility (1)
10,000   —   10,000   10,000   —   10,000  
Total $ 15,000   $ —   $ 15,000   $ 15,000   $ —   $ 15,000  

(1) In April 2025, the Company renewed and extended its existing 364 -day revolving credit facility as well as its five year credit facility.
The committed lines of credit in the table above mature in April 2026 and April 2030, carry interest rates of the Secured Overnight Financing Rate plus 45 basis points, and incur commitment fees ranging between 1.5 and 4.0 basis points. In conjunction with the committed lines of credit listed in the table above, the Company has agreed to observe certain covenants, the most restrictive of which relates to the maximum amount of secured debt. Additionally, the Company has syndicated and fronted letters of credit available which totaled $ 2.0 billion and $ 2.1 billion as of January 31, 2026 and 2025, respectively, of which $ 1.7 billion and $ 1.5 billion was issued as of January 31, 2026 and 2025, respectively.
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The Company's long-term debt, which includes the fair value instruments further discussed in Note 7 , consists of the following as of January 31, 2026 and 2025:

  January 31, 2026 January 31, 2025
(Amounts in millions) Maturity Dates
By Fiscal Year Amount Average Rate (1)
Amount Average Rate (1)

Unsecured debt
Fixed 2027 - 2054 $ 32,032   3.9 % $ 31,406   3.8 %
Variable 2028 750   4.1 % —   — %
Total U.S. dollar denominated 32,782   31,406  
Euro denominated
2027 - 2030 1,955   4.0 % 1,715   4.0 %

Sterling denominated
2031 - 2039 3,677   5.4 % 3,336   5.4 %

Yen denominated
2028 388   0.5 % 389   0.5 %

Total unsecured debt 38,802   36,846  
Total other (2)
( 636 ) ( 847 )
Total debt 38,166   35,999  
Less amounts due within one year ( 3,542 ) ( 2,598 )
Long-term debt $ 34,624   $ 33,401  

(1) The average rate represents the weighted-average stated rate for each corresponding debt category, based on year-end balances and year-end interest rates.
(2) Includes deferred loan costs, discounts, fair value hedges, foreign-held debt and secured debt.
Annual maturities of long-term debt during the next five years and thereafter are as follows:
(Amounts in millions) Annual
Fiscal Year Maturities
2027 $ 3,542  
2028 3,237  
2029 3,389  
2030 2,143  
2031 2,600  
Thereafter 23,255  
Total $ 38,166  

Debt Issuances
Information on significant issuances of long-term debt during fiscal 2026, for general corporate purposes, is as follows:
(Amounts in millions)
Issue Date Principal Amount Maturity Date Interest Rate Net Proceeds
April 28, 2025 $ 750 April 28, 2027 Floating $ 749  
April 28, 2025 $ 750 April 28, 2027 4.100 % 748  
April 28, 2025 $ 1,000 April 28, 2030 4.350 % 993  
April 28, 2025 $ 1,500 April 28, 2035 4.900 % 1,493  
Total $ 3,983  

These issuances are senior, unsecured notes which rank equally with all other senior, unsecured debt obligations of the Company, and are not convertible or exchangeable. These issuances do not contain any financial covenants which restrict the Company's ability to pay dividends or repurchase Company stock.
Maturities
The following tables provide details of significant long-term debt maturities during fiscal 2026 and 2025, respectively:
(Amounts in millions)
Maturity Date Principal Amount Interest Rate Repayment
June 26, 2025 $ 875 3.550 % $ 875  
September 9, 2025 $ 1,750 3.900 % 1,750  

Total $ 2,625  

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(Amounts in millions)
Maturity Date Principal Amount Interest Rate Repayment
April 22, 2024 $ 1,500 3.300 % $ 1,500  
July 8, 2024 $ 990 2.850 % 990  
July 18, 2024 ¥ 40,000 0.298 % 253  
December 15, 2024 $ 630 2.650 % 630  
Total $ 3,373  

Note 6. Leases
The Company leases certain retail locations, distribution and fulfillment centers, warehouses, office spaces, land and equipment throughout the U.S. and internationally. The Company's lease costs recognized in the Consolidated Statements of Income consist of the following:

Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025 2024
Operating lease cost $ 2,434   $ 2,347 $ 2,277
Finance lease cost:
   Amortization of right-of-use assets 888   891 755
   Interest on lease obligations 383   381 326
Variable lease cost 1,180   1,145 1,082

Other lease information is as follows:
Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025 2024
Cash paid for amounts included in measurement of lease obligations:
Operating cash flows from operating leases $ 2,315   $ 2,390   $ 2,273  
Operating cash flows from finance leases 377   375   315  
Financing cash flows from finance leases 891   908   1,055  
Assets obtained in exchange for operating lease obligations 2,303   1,974   1,514  
Assets obtained in exchange for finance lease obligations 703   1,455   1,572  

As of January 31,
2026 2025
Weighted-average remaining lease term - operating leases 11.3 years 11.3 years
Weighted-average remaining lease term - finance leases 11.5 years 11.7 years
Weighted-average discount rate - operating leases 6.7 % 6.5 %
Weighted-average discount rate - finance leases 7.0 % 6.7 %

The aggregate annual lease obligations at January 31, 2026, are as follows:

(Amounts in millions)
Fiscal Year Operating Leases Finance Leases
2027 $ 2,453   $ 1,228  
2028 2,361   1,132  
2029 2,214   955  
2030 2,008   805  
2031 1,796   692  
Thereafter 11,792   6,003  
Total undiscounted lease obligations 22,624   10,815  
Less imputed interest ( 7,052 ) ( 4,054 )
Net lease obligations $ 15,572   $ 6,761  

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Note 7. Fair Value Measurements
Assets and liabilities recorded at fair value are measured using the fair value hierarchy, which prioritizes the inputs used in measuring fair value. The levels of the fair value hierarchy are:
• Level 1: observable inputs such as quoted prices in active markets;
• Level 2: inputs other than quoted prices in active markets that are either directly or indirectly observable; and
• Level 3: unobservable inputs for which little or no market data exists, therefore requiring the Company to develop its own assumptions.
As described in Note 1 , the Company measures the fair value of certain equity investments, including certain immaterial equity method investments where the Company has elected the fair value option, as well as debt investments classified as trading on a recurring basis primarily within other long-term assets in the accompanying Consolidated Balance Sheets. The associated gains and losses from fair value changes for these investments are recognized within other gains and losses in the Consolidated Statements of Income. Other gains and losses included a gain of $ 2.1 billion and losses of $ 0.8 billion and $ 3.0 billion for fiscal 2026, 2025, and 2024, respectively, driven primarily by fair value changes on these investments, as well as other immaterial activity. The fair value of these investments is as follows:

(Amounts in millions) Fair Value as of January 31, 2026
Fair Value as of January 31, 2025

Equity investments measured using Level 1 inputs $ 1,037   $ 959  
Equity investments measured using Level 2 inputs 3,462   2,082  
Debt investments measured using Level 3 inputs 1,176   1,181  
Total $ 5,675   $ 4,222  

The fair value of these investments increased $ 1.5 billion during fiscal 2026, primarily due to gains and losses resulting from net changes in the underlying stock prices of the equity investments and certain other immaterial investment activity, partially offset by the sale of certain investments. The fair value of investments decreased $ 4.2 billion during fiscal 2025 primarily due to the sale of the Company's investment in JD.com, as well as gains and losses resulting from net changes in the underlying stock prices of the equity investments, along with certain other immaterial investment activity.
Sale of Investment
In August 2024, the Company sold its investment in JD.com for net proceeds of approximately $ 3.6  billion and recorded a realized loss of $ 0.3  billion within other gains and losses.
Derivatives
The Company also has derivatives recorded at fair value. Derivative fair values are the estimated amounts the Company would receive or pay upon termination of the related derivative agreements as of the reporting dates. The fair values have been measured using the income approach and Level 2 inputs, which include the relevant interest rate and foreign currency forward curves. As of January 31, 2026 and January 31, 2025, the notional amounts and fair values of these derivatives were as follows:

  January 31, 2026 January 31, 2025
(Amounts in millions) Notional Amount Fair Value Notional Amount Fair Value
Receive fixed-rate, pay variable-rate interest rate swaps designated as fair value hedges $ 4,771   $ ( 411 ) (1) $ 4,771   $ ( 611 ) (1)

Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges 6,020   ( 920 ) (1) 5,452   ( 1,388 ) (1)
Total $ 10,791   $ ( 1,331 ) $ 10,223   $ ( 1,999 )

(1) Primarily classified in deferred income taxes and other within the Company's Consolidated Balance Sheets.
Nonrecurring Fair Value Measurements
In addition to assets and liabilities recorded at fair value on a recurring basis, the Company's assets and liabilities are also subject to nonrecurring fair value measurements. Generally, assets are recorded at fair value on a nonrecurring basis as a result of impairment charges.
The Company did not have any material assets or liabilities resulting in nonrecurring fair value measurements as of January 31, 2026 and January 31, 2025.
Other Fair Value Disclosures
The Company records cash and cash equivalents, restricted cash and short-term borrowings at cost. The carrying values of these instruments approximate their fair value due to their short-term maturities.
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The Company's long-term debt is also recorded at cost. The fair value is estimated using Level 2 inputs based on observable prices of identical instruments in less active markets. The carrying value and fair value of the Company's long-term debt as of January 31, 2026 and 2025, are as follows:

  January 31, 2026 January 31, 2025
(Amounts in millions) Carrying Value Fair Value Carrying Value Fair Value
Long-term debt, including amounts due within one year $ 38,166   $ 36,777   $ 35,999   $ 33,790  

Note 8. Taxes
The components of income before income taxes are as follows:

  Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025 2024
U.S. $ 23,272   $ 18,571   $ 20,092  
Non-U.S. 6,197   7,738   1,756  
Total income before income taxes $ 29,469   $ 26,309   $ 21,848  

A summary of the provision for income taxes is as follows:

  Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025 2024
Current:
U.S. federal $ 2,128   $ 3,478   $ 3,215  
U.S. state and local 678   886   762  
Non-U.S. 2,116   2,451   1,772  
Total current tax provision 4,922   6,815   5,749  
Deferred:
U.S. federal 2,010   ( 214 ) ( 438 )
U.S. state and local 294   30   141  
Non-U.S.
( 27 ) ( 479 ) 126  
Total deferred tax expense (benefit) 2,277   ( 663 ) ( 171 )
Total provision for income taxes $ 7,199   $ 6,152   $ 5,578  

A summary of the cash paid for income taxes is as follows:

Fiscal Year Ended January 31,
(Amounts in millions) 2026
Cash taxes paid in total $ 5,364  
U.S. federal 1,743  
U.S. state and local 895  
Non-U.S.
2,726  

Cash taxes paid by jurisdiction
U.S. federal 1,743  
Mexico 1,285  
China 382  

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Effective Income Tax Rate Reconciliation
A reconciliation of the significant differences between the U.S. statutory tax rate and the effective income tax rate on pre-tax income from continuing operations for fiscal year 2026 is as follows:

Fiscal Year Ended
January 31, 2026
Amount Percent
U.S. federal statutory tax rate $ 6,188   21.0   %

State and local income tax, net of federal (national) income tax effect 760   2.6   %

Foreign tax effects
India
Changes in valuation allowances 461   1.6   %
Other ( 93 ) ( 0.3 ) %
Luxembourg
Changes in valuation allowances ( 1,811 ) ( 6.1 ) %
Internal reorganization 1,814   6.2   %
Other 83   0.3   %
Other foreign jurisdictions 498   1.7   %

Effect of cross-border tax laws 400   1.4   %

Tax credits
Foreign tax credits
( 586 ) ( 2.0 ) %
Research and development tax credits ( 323 ) ( 1.1 ) %
Other ( 167 ) ( 0.6 ) %
Changes in valuation allowances 374   1.3   %
Nontaxable or nondeductible items
Share based compensation ( 373 ) ( 1.3 ) %
Internal reorganization ( 349 ) ( 1.2 ) %
Other 132   0.4   %
Changes in unrecognized tax benefits 301   1.0   %
Other adjustments ( 110 ) ( 0.5 ) %
Effective income tax rate $ 7,199   24.4   %

A reconciliation of the significant differences between the U.S. statutory tax rate and the effective income tax rate on pre-tax income from continuing operations for fiscal years 2025 and 2024 is as follows:

  Fiscal Years Ended January 31,
  2025 2024
U.S. statutory tax rate 21.0   % 21.0   %
U.S. state income taxes, net of federal income tax benefit 2.8   % 3.0   %
Income taxed outside the U.S. 1.3   % 0.1   %

Valuation allowance 0.4   % 1.2   %
Net impact of repatriated international earnings ( 0.6 ) % ( 0.4 ) %
Federal tax credits ( 1.4 ) % ( 1.5 ) %

Change in unrecognized tax benefits 0.3   % 0.6   %
Other, net ( 0.4 ) % 1.5   %
Effective income tax rate 23.4   % 25.5   %

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Deferred Taxes
The significant components of the Company's deferred tax account balances are as follows:
  January 31,
(Amounts in millions) 2026 2025
Deferred tax assets:
Loss and tax credit carryforwards $ 4,615   $ 7,539  
Accrued liabilities 3,504   3,009  

Lease obligations 5,181   4,611  
Other 1,239   1,339  
Total deferred tax assets 14,539   16,498  
Valuation allowances ( 4,421 ) ( 7,405 )
Deferred tax assets, net of valuation allowances 10,118   9,093  
Deferred tax liabilities:
Property and equipment 6,122   4,303  
Acquired intangibles 1,066   1,096  
Inventory 3,570   3,336  
Lease right of use assets 5,345   4,816  

Other 1,373   813  
Total deferred tax liabilities 17,476   14,364  
Net deferred tax liabilities $ 7,358   $ 5,271  

The deferred taxes noted above are classified as follows in the Company's Consolidated Balance Sheets:

January 31,
(Amounts in millions) 2026 2025
Balance Sheet classification
Assets:
Other long-term assets $ 1,891   $ 1,748  
Liabilities:
Deferred income taxes and other 9,249   7,019  

Net deferred tax liabilities $ 7,358   $ 5,271  

Net Operating Losses, Tax Credit Carryforwards and Valuation Allowances
As of January 31, 2026, the Company's net operating loss and capital loss carryforwards totaled approximately $ 19.6 billion. Of these carryforwards, approximately $ 13.1 billion will expire, if not utilized, in various years through 2046. The remaining carryforwards have no expiration.
The realizability of these future tax deductions and credits is evaluated by assessing the adequacy of future expected taxable income from all sources, including taxable income in prior carryback years, reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. To the extent the Company does not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is generally established. To the extent that a valuation allowance was established and it is subsequently determined that it is more likely than not that the deferred tax assets will be recovered, the change in the valuation allowance is recognized in the Consolidated Statements of Income.
The Company had valuation allowances of approximately $ 4.4 billion and $ 7.4 billion as of January 31, 2026 and 2025, respectively, on deferred tax assets associated primarily with the net operating loss carryforwards.
Uncertain Tax Positions
The benefits of uncertain tax positions are recorded in the Company's Consolidated Financial Statements only after determining a more-likely-than-not probability that the uncertain tax positions will withstand challenge, if any, from taxing authorities.
As of January 31, 2026 and 2025, the amount of gross unrecognized tax benefits related to continuing operations was $ 2.4 billion and $ 3.8 billion, respectively. The amount of unrecognized tax benefits that would affect the Company's effective income tax rate was $ 2.0 billion as of January 31, 2026 and 2025.
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A reconciliation of gross unrecognized tax benefits from continuing operations is as follows:

  Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025 2024
Gross unrecognized tax benefits, beginning of year $ 3,757   $ 3,540   $ 3,307  
Increases related to prior year tax positions 342   445   336  
Decreases related to prior year tax positions ( 1,360 ) ( 228 ) ( 74 )
Increases related to current year tax positions 94   93   102  
Settlements during the period ( 328 ) ( 77 ) ( 102 )
Lapse in statutes of limitations ( 65 ) ( 16 ) ( 29 )
Gross unrecognized tax benefits, end of year $ 2,440   $ 3,757   $ 3,540  

The Company classifies interest and penalties related to uncertain tax benefits as interest expense and as operating, selling, general and administrative expenses, respectively. Interest expense and penalties related to these positions were immaterial for fiscal 2026, 2025 and 2024.
The Company remains subject to income tax examinations for its U.S. federal income taxes generally for fiscal 2018 through 2025. The Company also remains subject to income tax examinations for international income taxes for fiscal 2015 through 2025, and for U.S. state and local income taxes generally for the fiscal years ended 2018 through 2025. With few exceptions, the Company is no longer subject to U.S. federal, state, local or foreign examinations by tax authorities for years before fiscal 2015.
Other Taxes
The Company is subject to tax examinations for value added, sales-based, payroll and other non-income taxes. A number of these examinations are ongoing in various jurisdictions. In certain cases, the Company has received assessments and judgments from the respective taxing authorities in connection with these examinations. Unless otherwise indicated, the possible losses or range of possible losses associated with these matters are individually immaterial, but a group of related matters, if decided adversely to the Company, could result in a liability material to the Company's Consolidated Financial Statements.

Note 9. Contingencies
Legal Proceedings
The Company is involved in a number of legal proceedings and certain regulatory matters. The Company records a liability for those legal proceedings and regulatory matters when it determines it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. The Company also discloses when it is reasonably possible that a material loss may be incurred. From time to time, the Company may enter into discussions regarding settlement of these matters, and may enter into settlement agreements, if it believes settlement is in the best interest of the Company and its shareholders.
Unless stated otherwise, the matters discussed below, if decided adversely to or settled by the Company, individually or in the aggregate, may result in a liability material to the Company's financial position, results of operations or cash flows. The Company can provide no assurance as to the scope and outcome of these matters and cannot reasonably estimate any loss or range of loss, beyond the amounts accrued, if any, that may arise from these matters.
Settlement of Certain Opioid-Related Matters
The Company entered into settlement agreements with all 50 states, the District of Columbia, Puerto Rico, three U.S. territories, and the vast majority of eligible political subdivisions and federally recognized Native American tribes to resolve opioid-related claims against the Company. In fiscal year 2023, the Company accrued a liability of approximately $ 3.3  billion for these settlements, which included amounts for remediation of alleged harms, attorneys' fees, and costs. As of January 31, 2025, all of the accrued liability had been paid.
Ongoing Opioid-Related Litigation
The Company will continue to vigorously defend against any opioid-related matters not settled or otherwise resolved, including, but not limited to, each of the matters described below; any other actions filed by healthcare providers, individuals, and third-party payers; and any action filed by a political subdivision or Native American tribe that elected not to join the settlement described above. Accordingly, the Company has not accrued a liability for these opioid-related matters nor can the Company reasonably estimate any loss or range of loss that may arise from these matters. The Company can provide no assurance as to the scope and outcome of any of the opioid-related matters and no assurance that its business, financial position, results of operations or cash flows will not be materially adversely affected.
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Opioid Multidistrict Litigation; Other Opioid-Related Matters in the U.S. and Canada . In December 2017, the United States Judicial Panel on Multidistrict Litigation consolidated numerous lawsuits filed against a wide array of defendants by various plaintiffs, including counties, cities, healthcare providers, Native American tribes, individuals and third-party payers, asserting claims generally concerning the impacts of widespread opioid abuse. The consolidated multidistrict litigation is entitled In re National Prescription Opiate Litigation (MDL No. 2804) (the "MDL") and is pending in the U.S. District Court for the Northern District of Ohio (the "MDL Court"). The Company is named as a defendant in some cases included in the MDL.
Several opioid-related cases against the Company remain pending in the MDL and in state and federal courts. The plaintiffs include healthcare providers, third-party payers, individuals and others and seek compensatory and punitive damages and injunctive relief, including abatement. Four cases brought by third-party payers and one case brought by a hospital system have been selected as bellwether cases to proceed through discovery in the MDL, and the MDL Court may designate additional bellwether cases in the future. The Florida Health Sciences Center case pending in state court in Florida asserts claims on behalf of several hospital systems against the Company and other defendants. A jury trial in this matter commenced on September 18, 2025 and ended on December 8, 2025, at which time the Court declared a mistrial. The Court has scheduled retrial to commence on August 27, 2026.
The Company has been responding to subpoenas, information requests, and investigations from governmental entities related to nationwide controlled substance dispensing and distribution practices involving opioids.
Wal-Mart Canada Corp. and certain other subsidiaries of the Company have been named as defendants in two putative class action complaints filed in Canada related to distribution practices involving opioids. These matters remain pending.
Department of Justice Opioid Civil Litigation. On December 22, 2020, the U.S. Department of Justice (the "DOJ") filed a civil complaint in the U.S. District Court for the District of Delaware alleging that the Company unlawfully dispensed controlled substances from its pharmacies and unlawfully distributed controlled substances to those pharmacies. The complaint alleges that this conduct resulted in violations of the Controlled Substances Act. The DOJ is seeking civil penalties and injunctive relief. On March 11, 2024, the Court granted in-part Walmart's motion to dismiss by dismissing the entirety of the DOJ's claims related to distribution and dismissing the DOJ's claims arising under one of the DOJ's two dispensing liability theories. The DOJ's claims arising under its other dispensing liability theory remain pending. Trial is scheduled for November 2027.
False Claims Act Litigation. On August 23, 2019, a qui tam action was filed in the U.S. District Court for the District of New Mexico. The action was partially unsealed on April 30, 2024 after the federal government declined to intervene. The DOJ informed the Company of its decision not to intervene on June 20, 2024. On July 25, 2024, the Court transferred the litigation to the U.S. District Court for the District of Delaware. On January 9, 2025, the plaintiffs filed a third amended complaint on behalf of two former pharmacists of the Company as relators that alleges the Company violated the Controlled Substances Act and state pharmacy regulations and that such conduct constitutes violations of the federal False Claims Act. The Company has filed a renewed motion to dismiss that is currently pending with the Court.
Other Legal Proceedings
Asda Equal Value Claims. Asda, formerly a subsidiary of the Company, is a defendant in certain equal value claims that began in 2008 and are proceeding in the United Kingdom before an Employment Tribunal in Manchester and before the High Court. Claims have been brought by approximately 73,000 current and former Asda store employees who allege their work is of equal value to the work done by employees in Asda's distribution centers and that the difference in pay and conditions between the different jobs is not objectively justified. Additional employees may assert claims in the future. The High Court claims are stayed pending the determination of a cohort of claims brought in the Employment Tribunal. The legal proceedings to consider these equal value claims are in three phases, and the first two phases are complete. On January 31, 2025 and February 25, 2026, the Employment Tribunal issued rulings that certain of the claims are permitted to advance to the third phase. The hearing on the third phase is scheduled to begin on November 23, 2026. There are factual and legal defenses to the equal value claims, and the Company intends to vigorously defend them. Subsequent to the divestiture of Asda in February 2021, the Company continues to oversee the conduct of the defense of these claims. While potential liability for these claims remains with Asda, the Company has agreed to provide indemnification with respect to certain of these claims up to a contractually determined amount. The Company cannot predict the number of such claims that may ultimately be filed and cannot reasonably estimate any loss or range of loss that may arise related to these proceedings. Accordingly, the Company can provide no assurance as to the scope and outcome of these matters.
Money Transfer Agent Services Matter. The Company has responded to grand jury subpoenas issued by the United States Attorney's Office for the Middle District of Pennsylvania on behalf of the DOJ seeking documents regarding the Company's consumer fraud prevention program and anti-money laundering compliance related to the Company's money transfer services, where Walmart is an agent. The most recent subpoena was issued in August 2020. Walmart's responses to DOJ's subpoenas have been complete since 2021. While it has cooperated with the DOJ's review, the Company intends to vigorously defend this matter should the DOJ decide to pursue it further. The Company can provide no assurance as to the scope and outcome of this matter and cannot reasonably estimate any loss or range of loss that may arise. Accordingly, the Company can provide no assurance that its business, financial position, results of operations or cash flows will not be materially adversely affected.
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Driver Platform Matters. The Company, the Federal Trade Commission ("FTC") and certain states have reached a settlement regarding investigations into payment and operational practices of its Spark Driver platform pursuant to a stipulated order entered on March 3, 2026. Pursuant to the settlement and without admitting liability, the Company agreed to entry of a judgment of $ 100  million and to maintain certain programmatic practices and reporting obligations for a period of 10 years. Approximately $ 63  million of the judgment was suspended, pursuant to the terms of the stipulated order (reflecting amounts that have already been paid to drivers and other considerations reflected in the settlement), and the Company accrued the remainder of approximately $ 37  million as of January 31, 2026. The Company continues discussions regarding these matters with certain other state representatives.
The Company has also been responding to subpoenas, information requests and investigations from governmental entities with respect to the payment of drivers, independent contractor classification of drivers and certain operational issues regarding its Spark Driver platform. The Company is defending putative representative action civil litigation relating to driver classification and defending other civil litigation and arbitration claims in connection with the platform. The Company intends to vigorously defend itself in these matters. However, the Company can provide no assurance as to the scope and outcome of these matters and cannot reasonably estimate any loss or range of loss that may arise. Accordingly, the Company can provide no assurance that its business, financial position, results of operations or cash flows will not be materially adversely affected.
Mexico Antitrust Matter. On October 6, 2023, the Comisión Federal de Competencia Económica of México ("COFECE") notified the main Mexican operating subsidiary of Wal-Mart de México, S.A.B. de C.V. ("Walmex"), a majority owned subsidiary of the Company, that COFECE's Investigatory Authority ("IA") had recommended the initiation of a quasi-judicial administrative process against Walmex's subsidiary for alleged relative monopolistic practices in connection with the supply and wholesale distribution of certain consumer goods, retail marketing practices of such consumer goods and related services. On December 12, 2024, after Walmex provided defenses, produced expert evidence and participated in a hearing, COFECE issued a split decision that Walmex's subsidiary had engaged in a single relative monopolistic practice in relation to the negotiation of two types of contributions with its suppliers. The resolution imposed a monetary penalty on Walmex's subsidiary in the amount of $ 93.4 million pesos (approximately $ 5  million U.S. dollars) and certain non-structural conduct measures relating to the two prohibited types of supplier contributions (while recognizing that other supplier contributions can continue). On January 6, 2025, Walmex's subsidiary challenged COFECE's resolution through an appeal in the specialized federal courts. Until the appeal is resolved, Walmex's subsidiary will operate in compliance with COFECE's ruling. Payment of the monetary penalty is stayed until the lawsuit is resolved.
Foreign Direct Investment Matters. In July 2021, the Directorate of Enforcement in India issued a show cause notice to Flipkart Private Limited and one of its subsidiaries ("Flipkart"), and to unrelated companies and individuals, including certain current and former shareholders and directors of Flipkart. The notice requests the recipients to show cause as to why further proceedings under India's Foreign Direct Investment rules and regulations (the "Rules") should not be initiated against them based on alleged violations during the period from 2009 to 2015, prior to the Company's acquisition of a majority stake in Flipkart in 2018 (the "Notice"). In addition, there have been more recent requests for information from the Directorate of Enforcement to Flipkart for periods prior and subsequent to April 2016 regarding the Rules, including the most recent request in April 2025 (the "Requests"), to which Flipkart has been responding. The Notice is an initial stage of proceedings under the Rules which could, depending upon the conclusions at the end of the initial stage, lead to a hearing to consider the merits of the allegations described in the Notice. If a hearing on the merits is initiated, whether with respect to the Notice or pursuant to any further proceedings related to the Requests, and if it is determined that violations of the Rules occurred, then the regulatory authority has the authority to impose monetary and/or non-monetary relief, such as share ownership restrictions. Flipkart has been responding to the Notice and, if the matter progresses to a consideration of the merits of the allegations described in the Notice, Flipkart intends to defend against the allegations vigorously. Due to the fact that the process regarding the Notice is in the early stages, the Company is unable to predict whether the Notice will lead to a hearing on the merits or, if it does, the final outcome of the resulting proceedings, as well as whether any further proceedings will arise with respect to the Requests. The Company cannot reasonably estimate any loss or range of loss that may arise from these matters and can provide no assurance as to the scope or outcome of any proceeding that might result from the Notice or the Requests, or the amount of the proceeds the Company may receive in indemnification from individuals and entities that sold shares to the Company under the 2018 agreement for the period prior to the date the Company acquired its majority stake in Flipkart, and further can provide no assurance that its business, financial position, results of operations or cash flows will not be materially adversely affected.
India Antitrust Matter. On January 13, 2020, the Competition Commission of India ("CCI") ordered its Director General (the "DG") to investigate certain matters alleging competition law violations by certain subsidiaries of Flipkart in India and other parties. On September 13, 2024, those subsidiaries received a non-confidential version of the DG's Investigation Report (the "Report"), alleging certain competition law violations. CCI is not bound by the Report, and will conduct its independent analysis of the allegations, including hearing objections from the subsidiaries and other parties before issuing its final order in the matter, which could include monetary and non-monetary relief. CCI's final order would also be subject to appropriate appellate proceedings. The Company can provide no assurance as to the scope and outcome of this matter, cannot reasonably estimate any loss or range of loss that may arise, and can provide no assurance that its business, financial position, results of operations or cash flows will not be materially adversely affected.
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Note 10. Retirement-Related Benefits
The Company offers a 401(k) plan for associates in the U.S. under which eligible associates can begin contributing to the plan immediately upon hire. The Company also offers a 401(k) type plan for associates in Puerto Rico under which associates can begin to contribute generally after one year of employment. Under these plans, after one year of employment, the Company matches 100 % of participant contributions up to 6 % of annual eligible earnings. The matching contributions immediately vest at 100 % for each associate. Participants can contribute up to 50 % of their pre-tax earnings, but not more than the statutory limits.
Associates in international countries who are not U.S. citizens are covered by various defined contribution post-employment benefit arrangements. These plans are administered based upon the legislative and tax requirements in the countries in which they are established.
The following table summarizes the contribution expense related to the Company's defined contribution plans for fiscal 2026, 2025 and 2024:

Fiscal Years Ended January 31,
(Amounts in millions) 2026 2025 2024
Defined contribution plans:
U.S. $ 1,810   $ 1,751   $ 1,528  
International 86   78   85  
Total contribution expense for defined contribution plans $ 1,896   $ 1,829   $ 1,613  

Note 11. Segments and Disaggregated Revenue
Segments
The Company is engaged in the operation of retail and wholesale stores and clubs, as well as eCommerce websites and mobile applications, located throughout the U.S., Africa, Canada, Central America, Chile, China, India and Mexico. The Company's operations are conducted in three reportable segments: Walmart U.S., Walmart International and Sam's Club U.S. The Company defines its segments as those operations whose results the chief operating decision maker ("CODM"), the Company's Chief Executive Officer, regularly reviews to analyze performance and allocate resources. The Company sells similar individual products and services in each of its segments. It is impractical to segregate and identify revenues for each of these individual products and services.
The Walmart U.S. segment includes the Company's mass merchandising concept in the U.S., as well as eCommerce, which includes omnichannel initiatives and certain other business offerings such as advertising services. The Walmart International segment consists of the Company's operations outside of the U.S., as well as eCommerce and omnichannel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as samsclub.com and omnichannel initiatives. Corporate and support consists of corporate overhead and other items not allocated to any of the Company's segments. The operating results of each reportable segment, including the mix of cost of sales and operating, selling, general and administrative expenses, are not directly comparable due to differences in business model, format and channel mix. Additionally, the operating results of each reportable segment may not be comparable to those of other retailers, as discussed in Note 1 .
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The Company measures the profit or loss of its segments using operating income. The CODM uses operating income to allocate resources across the reportable segments as part of the Company's long-range and annual planning processes, and to evaluate planned versus actual results when assessing segment operating performance. From time to time, the Company may revise the measurement of each segment's operating income, including any corporate overhead allocations, and presentation of significant segment expenses, as determined by the information regularly reviewed by its CODM. Information for the Company's segments, as well as for Corporate and support, including the reconciliation to income before income taxes, is provided as follows:

Fiscal Years Ended January 31,
(Amounts in millions)
2026 2025 2024
Walmart U.S.
Net sales $ 482,975   $ 462,415   $ 441,817  
Membership and other income
2,624   2,594   1,985  
Total revenues
485,599   465,009   443,802  
Cost of sales 350,360   336,451   323,563  
Operating, selling, general and administrative expenses 110,081   104,676   98,085  
Operating income $ 25,158   $ 23,882   $ 22,154  

Walmart International
Net sales $ 130,423   $ 121,885   $ 114,641  
Membership and other income
1,565   1,478   1,408  
Total revenues
131,988   123,363   116,049  
Cost of sales 102,576   95,267   89,831  
Operating, selling, general and administrative expenses 24,309   22,595   21,309  
Operating income $ 5,103   $ 5,501   $ 4,909  

Sam's Club U.S. (1)

Net sales $ 93,015   $ 90,238   $ 86,179  
Membership and other income
2,525   2,323   2,051  
Total revenues
95,540   92,561   88,230  
Cost of sales 82,459   80,035   76,748  
Operating, selling, general and administrative expenses 10,639   10,122   9,290  
Operating income $ 2,442   $ 2,404   $ 2,192  

Corporate and support

Membership and other income (2)
$ 36   $ 52   $ 44  
Operating, selling, general and administrative expenses 2,914   2,491   2,287  
Operating loss $ ( 2,878 ) $ ( 2,439 ) $ ( 2,243 )

Consolidated
Net sales $ 706,413   $ 674,538   $ 642,637  
Membership and other income
6,750   6,447   5,488  
Total revenues
713,163   680,985   648,125  
Cost of sales 535,395   511,753   490,142  
Operating, selling, general and administrative expenses 147,943   139,884   130,971  
Operating income 29,825   29,348   27,012  
Interest, net 2,431   2,245   2,137  

Other (gains) and losses
( 2,075 ) 794   3,027  
Income before income taxes $ 29,469   $ 26,309   $ 21,848  

(1) Total fuel-related expenses for Sam's Club U.S. were $ 8.7 billion, $ 9.9 billion, and $ 10.6 billion in fiscal 2026, fiscal 2025, and fiscal 2024, respectively.
(2) Includes other income from corporate campus facilities.

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Total assets, depreciation and amortization, and capital expenditures for the Company's segments, as well as for Corporate and support, are as follows:

Fiscal Years Ended January 31,
(Amounts in millions)
2026 2025 2024
Walmart U.S.
Total assets $ 165,627   $ 150,006   $ 137,782  
Depreciation and amortization 9,390   8,549   7,671  
Capital expenditures 20,157   16,466   13,877  
Walmart International
Total assets $ 86,093   $ 80,016   $ 86,136  
Depreciation and amortization 2,304   2,260   2,159  
Capital expenditures 3,197   3,178   2,911  
Sam's Club U.S.