Financial Analysis

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 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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, …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

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 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 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

"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 accrueda liability of appro …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

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 …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

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.

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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

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"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 sale …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"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 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Event Dividends Declared The Company approved, effective February 19, 2026, the fiscal 2027 annual dividend of $0.99 per share, an increase over the fiscal 2026 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

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Short-term Borrowings and Long-term Debt The Company has various committed lines of credit in the U.S. to support its commercial paper program. In April 2025, the Company renewed and extended its existing 364-day revolving credit facility of $10.0 billion as well as its five-year credit facility of $5.0 billion. In total, the Company had committed lines of credit in the U.S. of $15.0 billion at October 31, 2025 and January 31, 2025, all undrawn. The following table provides the changes in the Company's long-term debt for the nine months ended October 31, 2025: (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 (1) 3,983 3,983 Repayments of long-term debt (2,625) (2,625) Reclassifications of long-term debt 3,551 (3,551) Currency and other adjustments (1) 612 611 Balances as of October 31, 2025 $ 3,523 $ 34,445 $ 37,968 (1) Proceeds from issuance of long-term debt are net of deferred loan costs and any related discount or premium. Debt Issuances Information on significant long-term debt issued during the nine months ended October 31, 2025, 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 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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. 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, on a recurring basis primarily within other long-term assets in the accompanying Condensed Consolidated Balance Sheets. The amounts of gains and losses included in earnings from fair value changes for these investments are recognized within other gains and losses in the Condensed Consolidated Statements of Income. The fair value of these investments is as follows: (Amounts in millions) Fair Value as of October 31, 2025 Fair Value as of January 31, 2025 Equity investments measured using Level 1 inputs $ 1,557 $ 959 Equity investments measured using Level 2 inputs 5,154 2,082 Total $ 6,711 $ 3,041 The fair value of these investments increased $2.1 billion and $3.7 billion for the three and nine months ended October 31, 2025, respectively, primarily due to gains and losses resultin …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"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 accrueda liability of appro …

LegalMattersAndContingenciesTextBlock · excerpt; the full note is in the filing

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. Early adoption is permitted. The amendments should be applied prospectively, although optional retrospective application is permitted. Management intends to adopt the amendments prospectively for the fiscal year ending January 31, 2026 and 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. 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 A …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

"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, which includes omnichannel initiatives. The Sam's Club U.S. segment includes the warehouse membership clubs in the U.S., as well as eCommerce, which includes omnichannel initiatives. Corporate and support consists of corporate overhead and other items not allocated to any of the Company's segments. The Company measures the profit or loss of its segments using …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing