WMT · 10-Q · 2026Q3 · Full report

Operating Expense Trends

Walmart Inc. · 2026-08-28 · Importance 37 · Surprise 6

Consolidated operating expenses increased to $39.8 billion in the quarter and $77.0 billion for the six months ended July 31, 2026, with expense ratios rising 11 and 22 basis points, respectively. Higher self-insured general liability claims, depreciation from capital investments, associate healthcare costs, enrollment growth and medical-cost inflation drove the increases. The increases were partially offset by lapping $0.4 billion of legal charges recorded in the prior-year periods. Walmart International reduced its operating expense ratio by 29 basis points in both periods through cost controls and format mix, while Walmart U.S. expense ratios increased 72 and 64 basis points.

Key facts

• Operating expenses were $39,750 million and $76,950 million for the three and six months ended July 31, 2026, respectively. source
• Walmart U.S. operating expenses as a percentage of net sales were 23.5% for both the three and six months ended July 31, 2026. source
• Operating expenses as a percentage of net sales increased 11 basis points and 22 basis points for the three and six months ended July 31, 2026, respectively, primarily driven by higher self-insured general liability claims expense, increased depreciation related to capital investments and higher associate healthcare benefit costs. source
• Walmart measures expense leverage as net sales growing at a faster rate than operating expenses and defines operating income leverage as growing operating income at a faster rate than net sales. source