stockrowWhat it does
Walmart is a retailer that sells groceries, everyday consumables, general merchandise, health and wellness products, fuel and services through stores, clubs, websites and mobile applications. Its model combines physical shopping with pickup, delivery and online ordering, so customers can buy through stores or eCommerce channels.
The company operates three segments: Walmart U.S., Walmart International and Sam’s Club U.S. Walmart U.S. is a mass merchandiser operating Walmart and Walmart Neighborhood Market stores, walmart.com and the Walmart mobile application. Its merchandise includes food, household essentials, apparel, home goods, electronics, toys, pharmacy and optical services. It also offers financial services, fuel, advertising, marketplace, fulfillment and data-related services.
Walmart International operates retail and wholesale formats, including supercenters, supermarkets, warehouse clubs, cash-and-carry locations and eCommerce businesses. Sam’s Club U.S. is a membership-only warehouse club selling grocery, general merchandise, health and wellness products, fuel and related services.
The company serves approximately 280 million customers each week through more than 10,900 stores in 19 countries and its digital properties. It was founded in 1962 and is headquartered in Bentonville. John Furner has been President and Chief Executive Officer since February 2026.
How it makes money
Walmart primarily earns revenue by selling merchandise at retail and wholesale prices. Its pricing model is everyday low prices: items are priced low every day rather than relying on frequent promotions. The company seeks to support that model with everyday low cost, meaning expense control intended to allow savings to be passed on to customers.
Walmart U.S. is the largest segment, generating $483.0 billion in FY2026 revenue. It sells grocery, general merchandise and health and wellness products, while also producing income from Walmart+ memberships, advertising, online marketplace seller services, fulfillment, data analytics, fuel and financial services. Walmart+ provides shopping benefits including eligible-item shipping, delivery from store, fuel discounts and Scan & Go.
Walmart International generated $130.4 billion in FY2026 revenue from retail, wholesale, marketplace, fulfillment, advertising, financial-services and healthcare activities across its markets. Sam’s Club U.S. generated $93.0 billion in FY2026 revenue from club merchandise sales. Membership income is a significant component of Sam’s Club U.S. operating income; annual Club and Plus memberships cost $50 and $110, respectively.
In fiscal 2026, Walmart generated total revenues of $713.2 billion, primarily comprising net sales of $706.4 billion; in Q2 FY2027, management said enterprise net sales grew 5% in constant currency. Management also said Q2 global advertising increased 38%, U.S. Marketplace net sales increased 52%, and global membership income grew nearly 17%.
| Segment | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Walmart U.S. | $483.0 billion | 68.4% | 4.45% |
| Walmart International | $130.4 billion | 18.5% | 7.00% |
| Sam’s Club U.S. | $93.0 billion | 13.2% | 3.08% |
Customers and how it sells
Walmart serves households seeking grocery, consumables, general merchandise, pharmacy and other everyday products, as well as Sam’s Club members and business customers using advertising, marketplace, fulfillment and data services. Walmart U.S. operates 4,611 stores in all 50 states, Washington D.C. and Puerto Rico, and substantially all of its stores provide same-day pickup and delivery.
The U.S. accounted for $581.2 billion of FY2026 revenue, or 81.5% of company revenue. Non-U.S. operations generated $132.0 billion, or 18.5%. Walmart International operates 5,743 stores in 18 countries outside the U.S., including Canada, Chile, China, markets in Africa, India, Mexico and Central America. Its international digital channels include walmart.com.mx, walmart.ca, flipkart.com, PhonePe and samclub.cn.
Sam’s Club U.S. has 601 clubs in 44 states, Puerto Rico and online channels. The business uses memberships to offer club shopping, curbside pickup, delivery, shipping and mobile checkout. Walmart’s stores and clubs also serve as fulfillment points for digital orders; management said they handle 80% of Walmart U.S. eCommerce orders and all fast deliveries.
| Region | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| U.S. | $581.2 billion | 81.5% | 4.22% |
| Non-U.S. operations | $132.0 billion | 18.5% | 6.99% |
Suppliers and costs
Walmart purchases merchandise from a global base of U.S. and international suppliers. For perishables, it often buys from producers near the stores and clubs where products will be sold. The company says that buying significant volumes can give it pricing reflecting volume, certainty and cost-effectiveness, supporting low prices for customers.
The U.S. supply chain uses 192 distribution facilities, a private truck fleet and common carriers. Outside the U.S., it uses 179 distribution facilities. Most store and club merchandise moves through these facilities, while much of the remainder ships directly from suppliers. The company also fulfills digital orders through stores, clubs, eCommerce fulfillment centers and other distribution facilities.
Costs include merchandise, transportation, fuel, labor, technology, automation, claims expense and depreciation. Management said it expects more than $2 billion of incremental fuel-related costs in FY2027 above its original assumptions. It also expects Vibe acquisition and integration costs to reduce FY2027 operating-income growth by approximately 20 basis points.
- Revenue$713.2B
- Cost of revenue−$535.4B
- Selling, general and administrative−$147.9B
- Operating income$29.8B
Competitive position
Walmart competes with physical, eCommerce and omnichannel retailers; grocery, drug, dollar, department, variety and specialty stores; warehouse clubs; gasoline stations; social-commerce platforms; and providers of advertising, fulfillment, delivery, health and financial services. Competition centers on price, merchandise availability and selection, store location and hours, shopping experience, digital-platform usability, and delivery speed, cost and options.
Kroger has identified Walmart, Costco and Aldi as rivals from which it seeks to reclaim ground through lower prices. Walmart also competes in membership warehouse clubs through Sam’s Club and faces competitors that may have more customers, greater brand recognition, better supplier terms or more resources in particular businesses.
Walmart’s competitive tools include everyday low prices, expense control, a broad physical network, pickup and delivery, memberships, marketplace services, advertising, fulfillment and technology investment. Management said Walmart U.S. made more than 11,000 rollbacks during Q2 FY2027 and that its price gaps to conventional U.S. grocers continued to widen.
Our reading: The physical footprint and fulfillment infrastructure are a strong moat source because stores function as both shopping locations and local delivery nodes. Our reading: Scale purchasing and the everyday-low-price model are a strong moat source because supplier-volume arrangements are intended to support low customer prices. Our reading: Membership, marketplace, advertising and fulfillment add customer and seller relationships, but these services operate in markets the company describes as highly competitive and rapidly evolving.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Kroger | U.S. grocery and low-price retail | Medium |
| Costco | U.S. grocery and warehouse retail | High |
| Aldi | U.S. grocery and discount retail | Medium |
Growth opportunities
Walmart’s growth plans combine retail sales with eCommerce, faster delivery, membership, marketplace, advertising, fulfillment, data and financial-service offerings. It is investing in technology, AI, supply-chain automation, fulfillment capacity, store and club openings and remodels. The company seeks growth through a seamless omnichannel experience, operating-margin improvement through productivity and business mix, and return improvement through margin and disciplined capital spending.
In FY2026, Walmart U.S. revenue was $483.0 billion, up 4.45%; Walmart International revenue was $130.4 billion, up 7.00%; and Sam’s Club U.S. revenue was $93.0 billion, up 3.08%. Walmart U.S. eCommerce contributed approximately 4.3% to its FY2026 comparable-sales growth, while International eCommerce sales grew $6.3 billion.
Management said global eCommerce net sales grew 23% in Q2 FY2027, including 24% at Walmart U.S., 26% at Sam’s Club U.S. and 19% internationally. It said sub-30-minute delivery had expanded to 38 U.S. markets, Walmart U.S. Marketplace capabilities had expanded into Mexico and Canada, and Walmart+ had launched in Canada. Management also said it acquired Vibe to expand self-service advertising tools and measurement capabilities.
Management said AI assistant Sparky is available in the app, on the web and in stores, with tools for replenishment, meal planning and recommendations. It said Sparky users were up 70% from the prior year and spend 40% more per order than customers who do not use it.
- $572.8BFY2022
- $611.3BFY2023
- $648.1BFY2024
- $681.0BFY2025
- $713.2BFY2026
Structural risks
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Executing the omnichannel strategy requires continued investment in eCommerce, technology, AI, talent, automation, supply chain and customer initiatives. The company says failure to build a seamless interconnected experience, or to realize investment benefits, could affect market position, sales and financial performance.
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Retail competition is broad, rapidly evolving and increasingly digital. New, well-funded competitors, AI capabilities, agentic shopping tools and competing omnichannel ecosystems could increase pressure on prices, customer experience, digital prominence and delivery.
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Customer demand, shopping patterns, tastes and preferences can change quickly. Errors in forecasting, pricing, assortment or inventory management can lead to lower sales, spoilage, markdowns, excess or insufficient inventory, and service interruptions.
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The business depends on domestic and international suppliers, logistics providers and cross-border trade. Supplier instability, product availability, labor or transport disruption, commodity costs, currency movements, tariffs, trade barriers and import or export restrictions can raise costs or reduce product availability.
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Higher fuel prices can affect consumer spending and distribution costs. Management expects more than $2 billion of incremental fuel-related costs in FY2027 above its original assumptions.
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Cyberattacks, outages, breaches and system failures can disrupt transaction processing, logistics, inventory management, stores, clubs and online operations. Product quality, safety or marketplace compliance failures can also lead to liability, regulatory action, lost customer trust and reputational harm.
Bottom line
Our reading
Our reading: Walmart is a large retail and membership business whose sales base is principally U.S.-based, with stores, clubs and digital channels used together for shopping and fulfillment. Its everyday-low-price model relies on purchasing scale, expense control and a physical network, while advertising, marketplace, fulfillment and membership broaden its revenue sources. The main operating exposures are execution of its technology and omnichannel investments, intense price and digital competition, supplier and trade disruption, and fuel, labor and logistics costs.