Walmart Inc. 10-Q

Item 1. Financial Statements Walmart Inc. Condensed Consolidated Statements of Income (Unaudited) Three Months Ended July 31, Six Months Ended July 31, (Amounts in millions, except per share data) 2026 2025 2026 2025 Revenues: Net sales $ 186,100 $ 175,750 $ 361,784 $ 339,731 Membership and other income 1,837 1,652 3,904 3,280 Total revenues 187,937 177,402 365,688 343,011 Costs and expenses: Cost of sales 138,804 132,771 271,862 257,074 Operating, selling, general and administrative expenses 39,750 37,345 76,950 71,516 Operating income 9,383 7,286 16,876 14,421 Interest: Debt 137 651 711 1,170 Finance lease 126 118 251 236 Interest income ( 92 ) ( 94 ) ( 171 ) ( 187 ) Interest, net 171 675 791 1,219 Other (gains) and losses 1,200 ( 2,708 ) 925 ( 2,111 ) Income before income taxes 8,012 9,319 15,160 15,313 Provision for income taxes 1,483 2,168 3,141 3,523 Consolidated net income 6,529 7,151 12,019 11,790 Consolidated net income attributable to noncontrolling interest ( 163 ) ( 125 ) ( 323 ) ( 277 ) Consolidated net income attributable to Walmart $ 6,366 $ 7,026 $ 11,696 $ 11,513 Net income per common share: Basic net income per common share attributable to Walmart $ 0.80 $ 0.88 $ 1.47 $ 1.44 Diluted net income per common share attributable to Walmart 0.80 0.88 1.46 1.43 Weighted-average common shares outstanding: Basic 7,954 7,978 7,962 7,994 Diluted 7,978 8,016 7,989 8,033 Dividends declared per common share $ — $ — $ 0.99 $ 0.94 See accompanying notes. 3 Table of Contents Walmart Inc. Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended July 31, Six Months Ended July 31, (Amounts in millions) 2026 2025 2026 2025 Consolidated net income $ 6,529 $ 7,151 $ 12,019 $ 11,790 Consolidated net income attributable to noncontrolling interest ( 163 ) ( 125 ) ( 323 ) ( 277 ) Consolidated net income attributable to Walmart 6,366 7,026 11,696 11,513 Other comprehensive income (loss), net of income taxes 534 750 ( 432 ) 1,095 Other comprehensive income attributable to noncontrolling interest ( 132 ) ( 187 ) ( 1 ) ( 223 ) Other comprehensive income (loss) attributable to Walmart 402 563 ( 433 ) 872 Comprehensive income, net of income taxes 7,063 7,901 11,587 12,885 Comprehensive income attributable to noncontrolling interest ( 295 ) ( 312 ) ( 324 ) ( 500 ) Comprehensive income attributable to Walmart $ 6,768 $ 7,589 $ 11,263 $ 12,385 See accompanying notes. 4 Table of Contents Walmart Inc. Condensed Consolidated Balance Sheets (Unaudited) July 31, January 31, July 31, (Amounts in millions) 2026 2026 2025 ASSETS Current assets: Cash and cash equivalents $ 11,529 $ 10,727 $ 9,431 Receivables, net 11,075 11,172 10,518 Inventories 61,600 58,851 57,729 Prepaid expenses and other 4,499 4,124 4,355 Total current assets 88,703 84,874 82,033 Property and equipment, net 142,482 136,083 125,476 Operating lease right-of-use assets 15,650 14,750 13,953 Finance lease right-of-use assets, net 6,178 6,123 6,128 Goodwill 28,260 28,735 29,060 Other long-term assets 12,641 14,103 14,187 Total assets $ 293,914 $ 284,668 $ 270,837 LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND SHAREHOLDERS' EQUITY Current liabilities: Short-term borrowings $ 10,479 $ 6,596 $ 3,837 Accounts payable 64,318 63,061 60,086 Dividends payable 3,949 — 3,783 Accrued liabilities 30,074 31,187 28,821 Accrued income taxes 746 596 620 Long-term debt due within one year 3,470 3,542 4,011 Operating lease obligations due within one year 1,714 1,631 1,580 Finance lease obligations due within one year 880 856 828 Total current liabilities 115,630 107,469 103,566 Long-term debt 36,462 34,624 35,640 Long-term operating lease obligations 14,798 13,941 13,171 Long-term finance lease obligations 5,952 5,905 5,947 Deferred income taxes and other 16,273 16,549 15,656 Commitments and contingencies Redeemable noncontrolling interest 293 293 307 Shareholders' equity: Common stock 794 797 797 Capital in excess of par value 7,046 6,816 5,718 Retained earnings 103,601 104,774 96,328 Accumulated other comprehensive loss ( 13,203 ) ( 12,770 ) ( 12,733 ) Total Walmart shareholders' equity 98,238 99,617 90,110 Nonredeemable noncontrolling interest 6,268 6,270 6,440 Total shareholders' equity 104,506 105,887 96,550 Total liabilities, redeemable noncontrolling interest, and shareholders' equity $ 293,914 $ 284,668 $ 270,837 See accompanying notes. 5 Table of Contents Walmart Inc. Condensed Consolidated Statements of Shareholders' Equity (Unaudited) Accumulated Total Capital in Other Walmart Nonredeemable (Amounts in millions) Common Stock Excess of Retained Comprehensive Shareholders' Noncontrolling Total Shares Amount Par Value Earnings Loss Equity Interest Equity Balances as of February 1, 2026 7,969 $ 797 $ 6,816 $ 104,774 $ ( 12,770 ) $ 99,617 $ 6,270 $ 105,887 Consolidated net income — — — 5,330 — 5,330 175 5,505 Other comprehensive loss, net of immaterial income taxes — — — — ( 835 ) ( 835 ) ( 131 ) ( 966 ) Dividends declared ($ 0.99 per share) — — — ( 7,896 ) — ( 7,896 ) — ( 7,896 ) Purchase of Company stock ( 17 ) ( 2 ) ( 128 ) ( 1,966 ) — ( 2,096 ) — ( 2,096 ) Other 10 1 210 ( 1 ) — 210 38 248 Balances as of April 30, 2026 7,962 $ 796 $ 6,898 $ 100,241 $ ( 13,605 ) $ 94,330 $ 6,352 $ 100,682 Consolidated net income — — — 6,366 — 6,366 163 6,529 Other comprehensive income, net of immaterial income taxes — — — — 402 402 132 534 Purchase of Company stock ( 26 ) ( 2 ) ( 196 ) ( 2,849 ) — ( 3,047 ) — ( 3,047 ) Dividends to noncontrolling interest — — — — — — ( 322 ) ( 322 ) Other 6 — 344 ( 157 ) — 187 ( 57 ) 130 Balances as of July 31, 2026 7,942 $ 794 $ 7,046 $ 103,601 $ ( 13,203 ) $ 98,238 $ 6,268 $ 104,506 Accumulated Total Capital in Other Walmart Nonredeemable (Amounts in millions) Common Stock Excess of Retained Comprehensive Shareholders' Noncontrolling Total Shares Amount Par Value Earnings Loss Equity Interest Equity Balances as of February 1, 2025 8,024 $ 802 $ 5,503 $ 98,313 $ ( 13,605 ) $ 91,013 $ 6,408 $ 97,421 Consolidated net income — — — 4,487 — 4,487 161 4,648 Other comprehensive income, net of immaterial income taxes — — — — 309 309 36 345 Dividends declared ($ 0.94 per share) — — — ( 7,540 ) — ( 7,540 ) — ( 7,540 ) Purchase of Company stock ( 51 ) ( 5 ) ( 243 ) ( 4,350 ) — ( 4,598 ) — ( 4,598 ) Other 13 2 181 ( 61 ) — 122 ( 57 ) 65 Balances as of April 30, 2025 7,986 $ 799 $ 5,441 $ 90,849 $ ( 13,296 ) $ 83,793 $ 6,548 $ 90,341 Consolidated net income — — — 7,026 — 7,026 132 7,158 Other comprehensive income, net of immaterial income taxes — — — — 563 563 187 750 Purchase of Company stock ( 16 ) ( 2 ) ( 90 ) ( 1,500 ) — ( 1,592 ) — ( 1,592 ) Dividends to noncontrolling interest — — — — — — ( 424 ) ( 424 ) Other 5 — 367 ( 47 ) — 320 ( 3 ) 317 Balances as of July 31, 2025 7,975 $ 797 $ 5,718 $ 96,328 $ ( 12,733 ) $ 90,110 $ 6,440 $ 96,550 See accompanying notes. 6 Table of Contents Walmart Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended July 31, (Amounts in millions) 2026 2025 Cash flows from operating activities: Consolidated net income $ 12,019 $ 11,790 Adjustments to reconcile consolidated net income to net cash provided by operating activities: Depreciation and amortization 7,746 6,856 Investment (gains) and losses, net 947 ( 2,066 ) Deferred income taxes 845 1,551 Other operating activities 816 1,370 Changes in certain assets and liabilities, net of effects of acquisitions and dispositions: Receivables, net 9 ( 405 ) Inventories ( 2,660 ) ( 659 ) Accounts payable 1,648 1,302 Accrued liabilities ( 1,449 ) ( 1,453 ) Accrued income taxes ( 211 ) 66 Net cash provided by operating activities 19,710 18,352 Cash flows from investing activities: Payments for property and equipment ( 14,181 ) ( 11,409 ) Proceeds from disposal of property and equipment 124 41 Proceeds from disposal of certain strategic investments 42 775 Other investing activities ( 249 ) ( 606 ) Net cash used in investing activities ( 14,264 ) ( 11,199 ) Cash flows from financing activities: Net change in short-term borrowings 3,923 759 Proceeds from issuance of long-term debt 4,230 3,983 Repayments of long-term debt ( 2,303 ) ( 875 ) Dividends paid ( 3,945 ) ( 3,755 ) Purchase of Company stock ( 5,104 ) ( 6,200 ) Other financing activities ( 1,643 ) ( 905 ) Net cash used in financing activities ( 4,842 ) ( 6,993 ) Effect of exchange rates on cash, cash equivalents and restricted cash 67 181 Net increase in cash, cash equivalents and restricted cash 671 341 Cash, cash equivalents and restricted cash at beginning of year 11,321 9,536 Cash, cash equivalents and restricted cash at end of period $ 11,992 $ 9,877 See accompanying notes. 7 Table of Contents Walmart Inc. Notes to Condensed Consolidated Financial Statements Note 1. Summary of Significant Accounting Policies Basis of Presentation The Condensed Consolidated Financial Statements of Walmart Inc. and its subsidiaries ("Walmart" or the "Company") and the accompanying notes included in this Quarterly Report on Form 10-Q are unaudited. In the opinion of management, all adjustments necessary for the fair presentation of the Condensed Consolidated Financial Statements have been included. Such adjustments are of a normal, recurring nature. The Condensed Consolidated Financial Statements, and the accompanying notes, are prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and do not contain certain information included in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2026 ("fiscal 2026"). Therefore, the interim Condensed Consolidated Financial Statements should be read in conjunction with that Annual Report on Form 10-K. The Company's Condensed Consolidated Financial Statements are based on a fiscal year ending January 31 for the United States ("U.S.") and Canadian operations. The Company consolidates all other operations generally using a one-month lag based on a calendar year. There were no significant intervening events during the month of July 2026 related to the consolidated operations using a lag that materially affected the Condensed Consolidated Financial Statements. The Company's business is seasonal to a certain extent due to calendar events and national and religious holidays, as well as weather patterns. Historically, the Company's highest sales volume has occurred in the fiscal quarter ending January 31. Use of Estimates The Condensed Consolidated Financial Statements have been prepared in conformity with 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 materially from those estimates. Supplier Financing Program Obligations The Company has supplier financing programs with financial institutions, whereby 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. The outstanding payment obligations to financial institutions under these programs were $ 6.4 billion, $ 6.0 billion and $ 5.7 billion as of July 31, 2026, January 31, 2026 and July 31, 2025, respectively. Income Taxes 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 related to unrecognized tax benefits in interest expense in the Company's Condensed Consolidated Statements of Income. During the quarter ended July 31, 2026, the Company recorded a $ 0.4 billion benefit to income tax expense and a $ 0.5 billion reduction of interest expense in the Condensed Consolidated Statements of Income related to changes in unrecognized tax benefits. Recent Accounting Pronouncements 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. 8 Table of Contents 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 the three and six months ended July 31, 2026 and 2025. 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: Three Months Ended July 31, Six Months Ended July 31, (Amounts in millions, except per share data) 2026 2025 2026 2025 Numerator Consolidated net income $ 6,529 $ 7,151 $ 12,019 $ 11,790 Consolidated net income attributable to noncontrolling interest ( 163 ) ( 125 ) ( 323 ) ( 277 ) Consolidated net income attributable to Walmart $ 6,366 $ 7,026 $ 11,696 $ 11,513 Denominator Weighted-average common shares outstanding, basic 7,954 7,978 7,962 7,994 Dilutive impact of share-based awards 24 38 27 39 Weighted-average common shares outstanding, diluted 7,978 8,016 7,989 8,033 Net income per common share attributable to Walmart Basic $ 0.80 $ 0.88 $ 1.47 $ 1.44 Diluted 0.80 0.88 1.46 1.43 Note 3. 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 2026, 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 July 31, 2026 and January 31, 2026, all undrawn. The following table provides the changes in the Company's long-term debt for the six months ended July 31, 2026: (Amounts in millions) Long-term debt due within one year Long-term debt Total Balances as of February 1, 2026 $ 3,542 $ 34,624 $ 38,166 Proceeds from issuance of long-term debt (1) — 4,230 4,230 Repayments of long-term debt ( 2,303 ) — ( 2,303 ) Reclassifications of long-term debt 2,249 ( 2,249 ) — Currency and other adjustments ( 18 ) ( 143 ) ( 161 ) Balances as of July 31, 2026 $ 3,470 $ 36,462 $ 39,932 (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 six months ended July 31, 2026, for general corporate purposes, is as follows: (Amounts in millions) Issue Date Principal Amount Maturity Date Interest Rate Net Proceeds April 30, 2026 $ 350 April 30, 2029 Floating $ 349 April 30, 2026 $ 650 April 30, 2029 4.000 % $ 648 April 30, 2026 $ 1,000 April 30, 2031 4.150 % $ 994 April 30, 2026 $ 1,250 April 30, 2033 4.450 % $ 1,244 April 30, 2026 $ 1,000 April 30, 2036 4.750 % $ 995 Total $ 4,230 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 and do not restrict the Company's ability to pay dividends or repurchase company stock. 9 Table of Contents Maturities Information on significant long-term debt maturities during the six months ended July 31, 2026 is as follows: (Amounts in millions) Maturity Date Principal Amount Interest Rate Repayment April 8, 2026 € 650 2.550 % $ 754 April 15, 2026 $ 750 4.000 % 750 July 8, 2026 $ 799 3.050 % 799 $ 2,303 Note 4. 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, as well as debt investments classified as trading on a recurring basis primarily within other long-term assets in the accompanying Condensed Consolidated Balance Sheets. The associated gains and losses 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 July 31, 2026 Fair Value as of January 31, 2026 Equity investments measured using Level 1 inputs $ 860 $ 1,037 Equity investments measured using Level 2 inputs 2,781 3,462 Debt investments measured using Level 3 inputs 1,226 1,176 Total $ 4,867 $ 5,675 The fair value of these investments decreased $ 1.1 billion and $ 0.8 billion for the three and six months ended July 31, 2026, respectively, and increased $ 2.0 billion and $ 1.4 billion for the three and six months ended July 31, 2025, respectively, primarily due to gains and losses resulting from net changes in the underlying stock prices of the investments and certain other immaterial investment activity. 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 July 31, 2026 and January 31, 2026, the notional amounts and fair values of these derivatives were as follows: July 31, 2026 January 31, 2026 (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 $ ( 467 ) (1) $ 4,771 $ ( 411 ) (1) Receive fixed-rate, pay fixed-rate cross-currency swaps designated as cash flow hedges 5,147 ( 870 ) (1) 6,020 ( 920 ) (1) Total $ 9,918 $ ( 1,337 ) $ 10,791 $ ( 1,331 ) (1) Primarily classified in deferred income taxes and other within the Company's Condensed 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 July 31, 2026 in the Company's Condensed Consolidated Balance Sheets. 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. 10 Table of Contents 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 July 31, 2026 and January 31, 2026, are as follows: July 31, 2026 January 31, 2026 (Amounts in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt, including amounts due within one year $ 39,932 $ 37,267 $ 38,166 $ 36,777 Note 5. Contingencies Legal Proceedings The Company is involved in a number of legal proceedings and 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. Opioid-Related Litigation The Company continues to vigorously defend against claims relating to distribution and dispensing of prescription opioid medications. These opioid-related matters include, but are not limited to, each of the matters described below; other actions filed by healthcare providers, individuals, and third-party payors; and actions filed by political subdivisions or Native American tribes that elected not to join the national settlements the Company disclosed in fiscal year 2023. Except as noted below, the Company cannot reasonably estimate any loss or range of loss that may arise from these matters and 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. Civil Litigation 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 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"). Final approval of a settlement resolving the opioid-related claims of a nationwide class of third-party payors is pending with the MDL Court. The Company remains a party to certain other opioid-related matters in the MDL. Of those remaining cases, one brought by a hospital system has been selected as a bellwether case to proceed through discovery. The MDL Court may designate additional bellwether cases in the future. The Company is also a defendant to other opioid-related matters and in state and federal courts. The Florida Health Sciences Center case in a Florida state court asserted claims on behalf of several hospital systems against the Company and other defendants. A jury trial in this matter ended in a mistrial, and the Court thereafter granted a directed verdict and entered judgment in favor of the Company and other defendants. The plaintiffs have appealed. 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 Company, without admitting liability, has settled this matter for an immaterial amount, which was accrued as of July 31, 2026. 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, without admitting liability, has settled this matter for an immaterial amount, which was accrued as of July 31, 2026. 11 Table of Contents 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 77,000 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. 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 has also agreed to settlement terms with certain other states on these matters. 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. 12 Table of Contents Foreign Direct Investment Matters. At various times since July 2021, the Directorate of Enforcement in India has issued show cause notices (the "Notices") to Flipkart, various of its subsidiaries, and to unrelated companies and individuals, including certain current and former shareholders and directors of Flipkart. The Notices request the recipients to show cause as to why further proceedings should not be initiated against them based on alleged violations under India's Foreign Direct Investment rules and regulations (the "Rules"). The Notices primarily address the period from 2009 to 2015, prior to the Company's acquisition of a majority stake in Flipkart in 2018. Flipkart is responding to the Notices, which are at an initial stage of proceedings. Flipkart is also responding to requests for information for periods prior and subsequent to April 2016 regarding the Rules. If a hearing on the merits is initiated with respect to any Notice, and 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 intends to vigorously defend against the allegations set forth in the Notices. The Company is unable to predict whether any of the Notices will lead to a hearing on the merits or, if it does, the final outcome of the resulting proceedings. The Company cannot reasonably estimate any loss or range of loss that may arise from these matters, can provide no assurance as to the scope or outcome of any proceeding that might result from the Notices, 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 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. Other Lawsuits and Regulatory Matters The Company is involved in various other legal and regulatory proceedings that generally arise in the ordinary course of business, certain of which may be styled as class, representative, or mass actions which may seek substantial or indeterminate amounts, including punitive or exemplary damages. Among other things, these matters may involve intellectual property, antitrust and competition, consumer protection, and employment, as well as claims for insurance-related liabilities, such as workers' compensation, general liability, product liability, and certain employee-related healthcare benefits. These matters increasingly allege novel theories of harm, and can be expensive, disruptive and time-consuming to resolve. In addition, the Company self-insures against a number of insurance-related liabilities, including, but not limited to, general liability, workers' compensation, auto liability, product liability and certain employee-related healthcare benefits. Certain of the claims asserted against the Company may be subject to third-party insurance coverage or indemnification, including indemnification from suppliers of the products that the Company sells; however, in the event that insurance coverage is not adequate or does not continue to be available, or a supplier does not have the financial ability or capacity to fulfill their indemnification obligations, the Company's exposure to the full risks and costs of such claims is likely to increase. Gain Contingencies The Company engaged in the process established by the U.S. Customs and Border Protection ("CBP") for refunds of tariffs that the Company paid as the importer of record under the International Emergency Economic Powers Act. The Company accounts for such refunds as gain contingencies and recognizes any recovery when the gain is realized or realizable and the related contingencies have been substantially resolved. During the quarter ended July 31, 2026, the Company received approximately $ 2.9 billion in tariff refunds, primarily in the Walmart U.S. segment, which were recorded as a reduction to cost of sales and represent substantially all of the refunds requested by the Company. Note 6. 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. 13 Table of Contents 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 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. 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. Beginning in February 2026, the Company updated its segment allocation methodology for certain corporate overhead allocations and, accordingly, revised the prior period amounts for comparability. 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: Three Months Ended July 31, Six Months Ended July 31, (Amounts in millions) 2026 2025 2026 2025 Walmart U.S. Net sales $ 125,189 $ 120,911 $ 242,358 $ 233,074 Membership and other income 750 649 1,676 1,285 Total revenues 125,939 121,560 244,034 234,359 Cost of sales 88,351 87,237 172,991 168,589 Operating, selling, general and administrative expenses 29,468 27,591 57,026 53,342 Operating income $ 8,120 $ 6,732 $ 14,017 $ 12,428 Walmart International Net sales $ 35,198 $ 31,201 $ 70,308 $ 60,955 Membership and other income 426 381 851 760 Total revenues 35,624 31,582 71,159 61,715 Cost of sales 27,659 24,472 55,346 47,936 Operating, selling, general and administrative expenses 6,526 5,876 12,772 11,252 Operating income $ 1,439 $ 1,234 $ 3,041 $ 2,527 Sam's Club U.S. (1) Net sales $ 25,713 $ 23,638 $ 49,118 $ 45,702 Membership and other income 654 617 1,328 1,224 Total revenues 26,367 24,255 50,446 46,926 Cost of sales 22,794 21,062 43,525 40,549 Operating, selling, general and administrative expenses 2,895 2,723 5,569 5,241 Operating income $ 678 $ 470 $ 1,352 $ 1,136 Corporate and support Membership and other income (2) $ 7 $ 5 $ 49 $ 11 Operating, selling, general and administrative expenses 861 1,155 1,583 1,681 Operating loss $ ( 854 ) $ ( 1,150 ) $ ( 1,534 ) $ ( 1,670 ) Consolidated Net sales $ 186,100 $ 175,750 $ 361,784 $ 339,731 Membership and other income 1,837 1,652 3,904 3,280 Total revenues 187,937 177,402 365,688 343,011 Cost of sales 138,804 132,771 271,862 257,074 Operating, selling, general and administrative expenses 39,750 37,345 76,950 71,516 Operating income 9,383 7,286 16,876 14,421 Interest, net 171 675 791 1,219 Other (gains) and losses 1,200 ( 2,708 ) 925 ( 2,111 ) Income before income taxes $ 8,012 $ 9,319 $ 15,160 $ 15,313 (1) Total fuel-related cost of sales and operating, selling, general and administrative expenses for Sam's Club U.S. were $ 3.4 billion and $ 2.3 billion for the three months ended July 31, 2026 and 2025, respectively, and $ 6.1 billion and $ 4.5 billion for the six months ended July 31, 2026 and 2025, respectively. (2) Includes other income from corporate campus facilities and miscellaneous items. 14 Table of Contents Depreciation and amortization and capital expenditures for the Company's segments, as well as for Corporate and support, are as follows: Three Months Ended July 31, Six Months Ended July 31, (Amounts in millions) 2026 2025 2026 2025 Walmart U.S. Depreciation and amortization $ 2,602 $ 2,299 $ 5,111 $ 4,539 Capital expenditures 5,442 4,775 10,453 8,547 Walmart International Depreciation and amortization $ 632 $ 572 $ 1,263 $ 1,121 Capital expenditures 991 746 1,812 1,227 Sam's Club U.S. Depreciation and amortization $ 205 $ 195 $ 408 $ 384 Capital expenditures 390 194 664 338 Corporate and support Depreciation and amortization $ 486 $ 421 $ 964 $ 812 Capital expenditures 674 708 1,252 1,297 Consolidated Depreciation and amortization $ 3,925 $ 3,487 $ 7,746 $ 6,856 Capital expenditures 7,497 6,423 14,181 11,409 Total assets for the Company's segments, as well as for Corporate and support, are as follows: July 31, January 31, (Amounts in millions) 2026 2026 Assets by segment Walmart U.S. $ 172,301 $ 165,627 Walmart International 87,968 86,093 Sam's Club U.S. 18,203 17,186 Corporate and support 15,442 15,762 Total assets $ 293,914 $ 284,668 Disaggregated Revenues In the following tables, segment net sales are disaggregated by either merchandise category or market. In addition, net sales related to eCommerce are provided for each segment. Net sales related to eCommerce include omnichannel sales where a customer initiates an order digitally and the order is fulfilled through a store or club, as well as net sales from other business offerings that are part of the Company's ecosystem such as certain advertising arrangements, fulfillment services and data insights. From time to time, the Company revises the assignment of net sales of a particular item to a merchandise category. When the assignment changes, previous period amounts are reclassified to be comparable to the current period's presentation. (Amounts in millions) Three Months Ended July 31, Six Months Ended July 31, Walmart U.S. net sales by merchandise category 2026 2025 2026 2025 Grocery $ 74,130 $ 71,092 $ 144,826 $ 138,923 General merchandise 29,728 29,458 56,148 54,734 Health and wellness 16,942 17,248 33,297 33,492 Other categories 4,389 3,113 8,087 5,925 Total $ 125,189 $ 120,911 $ 242,358 $ 233,074 Of Walmart U.S.'s total net sales, approximately $ 29.4 billion and $ 23.7 billion related to eCommerce for the three months ended July 31, 2026 and 2025, respectively, and approximately $ 56.4 billion and $ 45.1 billion related to eCommerce for the six months ended July 31, 2026 and 2025, respectively. 15 Table of Contents (Amounts in millions) Three Months Ended July 31, Six Months Ended July 31, Walmart International net sales by market 2026 2025 2026 2025 Mexico and Central America $ 14,331 $ 12,546 $ 28,178 $ 24,260 China 7,416 5,786 15,870 12,365 Canada 6,379 6,114 12,106 11,259 Other 7,072 6,755 14,153 13,071 Total $ 35,198 $ 31,201 $ 70,307 $ 60,955 Of Walmart International's total net sales, approximately $ 9.9 billion and $ 8.3 billion related to eCommerce for the three months ended July 31, 2026 and 2025, respectively, and approximately $ 19.6 billion and $ 16.0 billion related to eCommerce for the six months ended July 31, 2026 and 2025, respectively. (Amounts in millions) Three Months Ended July 31, Six Months Ended July 31, Sam's Club U.S. net sales by merchandise category 2026 2025 2026 2025 Grocery $ 17,223 $ 16,417 $ 33,325 $ 31,860 Fuel and other 4,192 3,064 7,635 5,915 General merchandise 3,042 2,877 5,691 5,413 Health and wellness 1,256 1,280 2,467 2,514 Total $ 25,713 $ 23,638 $ 49,118 $ 45,702 Of Sam's Club U.S.'s total net sales, approximately $ 4.7 billion and $ 3.7 billion related to eCommerce for the three months ended July 31, 2026 and 2025, respectively, and approximately $ 8.8 billion and $ 7.1 billion related to eCommerce for the six months ended July 31, 2026 and 2025, respectively. 16 Table of Contents