WMT · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

Walmart Inc. · 2026-08-28 · Importance 45 · Surprise 50

Consolidated gross profit rate increased 96 basis points to 25.4% in the quarter and 53 basis points to 24.9% for the six months ended July 31, 2026. Approximately $2.9 billion of tariff refunds received during the quarter reduced cost of sales and drove the principal margin improvement. Price investments and higher fuel costs within the supply chain partially offset the tariff benefit, while advertising and other higher-margin businesses supported gross margin. Walmart U.S. gross margin expanded 158 basis points in the quarter and 95 basis points year to date, whereas Walmart International margin declined 15 and 8 basis points because of price investments and format mix shifts.

Key facts

• Gross profit was $47,296 million and $89,922 million for the three and six months ended July 31, 2026, respectively. source
• Walmart U.S. gross profit rate was 29.4% for the three months ended July 31, 2026 and 28.6% for the six months ended July 31, 2026. source
• Gross profit rate increased 96 basis points and 53 basis points for the three and six months ended July 31, 2026, respectively, primarily due to tariff refunds, partially offset by price investments and higher fuel costs within our supply chain. source
• Walmart International gross profit rate decreased 15 basis points and 8 basis points for the three and six months ended July 31, 2026, respectively, primarily due to price investments and ongoing format mix shifts. source