Walmart : First Quarter 2025 Presentation Q1 and FY25

Financial presentation

to accompany management commentary

FY25 Q1

Guidance

The following guidance reflects the Company's expectations for the second quarter and fiscal year 2025 and is provided on a non-GAAP basis as the Company cannot predict certain elements that are included in reported GAAP results, such as the changes in fair value of the Company's equity and other investments. Growth rates reflect an adjusted basis for prior year results. Additionally, the Company's guidance assumes a generally stable consumer and continued pressure from its mix of products and formats globally.

The Company's fiscal year guidance is based on the following FY24 figures: Net sales: $642.6 billion, adjusted operating income1: $27.1 billion, adjusted EPS1 $2.22.

Metric	Q2
Consolidated net sales (cc)	Increase 3.5% to 4.5%
Consolidated operating income (cc)	Increase 3.0% to 4.5%
Adjusted EPS	$0.62 to $0.65

Metric	FY 2025 (updated)	FY 2025 (original)
Consolidated net sales (cc)	High-end or slightly above original guidance	Increase 3.0% to 4.0%
Consolidated adj. operating income (cc)	High-end or slightly above original guidance	Increase 4.0% to 6.0%
Interest, net	Unchanged from original guidance	Increase approximately $100M to $200M
Effective tax rate	Unchanged from original guidance	Approximately 25.0% to 26.0%
Non-controlling interest	Unchanged from original guidance	Relatively flat
Adjusted EPS	High-end or slightly above original guidance	$2.23 to $2.37
Capital expenditures	Unchanged from original guidance	Approximately 3.0% to 3.5% of net sales

1For relevant reconciliations, see Q4 FY24 earnings release furnished on Form 8-K on February 20, 2024. cc = constant currency

2

Total revenues

Total revenues (cc)1 $161.1 billion, up +5.8%

Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding.

$173.4

$161.6

$160.8

$161.5

$152.3

	Q1 FY24	Q2 FY24	Q3 FY24	Q4 FY24	Q1 FY25
Y/Y Change	+7.6%	+5.7%	+5.2%	+5.7%	+6.0%
Y/Y Change (cc)1	+7.7%	+5.4%	+4.3%	+4.9%	+5.8%

• Total revenues reached $161.5 billion with strength across all operating segments
• Net sales positively affected by 2024 leap year which contributed approximately 1% to Y/Y growth; positive impact of $0.4 billion from currency fluctuations
• Global eCommerce net sales grew by 21%
• Strong growth in membership income globally

1See additional information at the end of this presentation regarding non-GAAP financial measures.

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Gross profit rate

Gross profit rate +42bps to 24.1%

24.0% 24.0%

23.7%

24.1%

•	Due to improvements across
	segments, led by Walmart U.S.
•	Improvement from continuing
	to manage pricing aligned to

23.3%

	Q1 FY24	Q2 FY24	Q3 FY24	Q4 FY24	Q1 FY25
Y/Y Change	-18bps	+50bps	+32bps	+39bps	+42bps

competitive price gaps, lower

markdowns as a result of

disciplined inventory

management, and favorable

business mix

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Operating expenses as a percentage of net sales

Adjusted operating expenses as a percentage of net sales1, +24bps to 20.6%

Operating expenses as a percentage	Adjusted operating expenses as a
	of net sales		percentage of net sales1
	21.0%		21.0%
	20.8%		20.6%
20.4%		20.4%
20.3%	20.2%
	20.0%		20.0%

	Q1 FY24	Q2 FY24	Q3 FY24	Q4 FY24	Q1 FY25		Q1 FY24	Q2 FY24	Q3 FY24	Q4 FY24	Q1 FY25
Y/Y Change	-58bps	+33bps	-182bps	-36bps	+40bps	Y/Y Change	-58bps	+27bps	+37bps	+16bps	+24bps

• Operating expenses deleveraged on a reported basis 40bps driven by higher variable pay expenses due to exceeding planned performance, increased associate pay including previously-announced wage investments, and business reorganization charges in the U.S.
• Partially offset by improved leverage in the Walmart International segment
• Adjusted1 operating expenses deleveraged 24bps, excluding discrete charges related to business reorganization

1See additional information at the end of this presentation regarding non-GAAP financial measures.

5

Operating income

Adjusted operating income1 of $7.1 billion, up 13.7%

Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding.

Operating income	Adjusted operating income1
$7.3	$7.3	$7.4	$7.3	$7.1
		$6.8
$6.2	$6.2	$6.2	$6.2

	Q1 FY24	Q2 FY24	Q3 FY24	Q4 FY24	Q1 FY25		Q1 FY24	Q2 FY24	Q3 FY24	Q4 FY24	Q1 FY25
Y/Y Change	+17.3%	+6.7%	+130.1%	+30.4%	+9.6%	Y/Y Change	+17.3%	+8.1%	+3.0%	+13.2%	+13.7%
Y/Y Change (cc)1	+16.0%	+4.9%	+124.0%	+27.8%	+8.8%	Y/Y Change (cc)1	+16.0%	+6.3%	+0.3%	+10.9%	+12.9%

1See additional information at the end of this presentation regarding non-GAAP financial measures.

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• Adjusted operating income (cc)1 up 12.9% relative to 5.7% growth in net sales (cc)1
• Reflects sales growth, higher gross margins and membership income; partially offset by expense deleverage
• Q1 FY25 net income margin increased ~210 bps and adjusted EBITDA margin1 increased ~40bps

EPS

Adjusted EPS2 of $0.60, up 22.4%

			EPS1					Adjusted EPS1,2
		$0.97
				$0.68	$0.63			$0.61		$0.60	$0.60
							$0.49		$0.51
	$0.21
			$0.06
	Q1 FY24	Q2 FY24	Q3 FY24	Q4 FY24	Q1 FY25		Q1 FY24	Q2 FY24	Q3 FY24	Q4 FY24	Q1 FY25
						PY	$0.43	$0.59	$0.50	$0.57	$0.49
Y/Y Change	-16.0%	+54.0%	NM	-11.7%	+200.0%	Y/Y Change	+14.0%	+3.4%	+2.0%	+5.3%	+22.4%

1Comparison period per-share amounts and percentage changes have been retroactively adjusted to reflect the February 23, 2024 stock split. 2See additional information at the end of this presentation regarding non-GAAP financial measures.

NM = not meaningful

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• Adjusted EPS2 of $0.60 excludes the effects, net of tax, of $0.05 from net gains on equity and other investments and $0.02 of business reorganization charges

Cash flow

Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding.

Operating cash flow

$35.7

$18.2 $19.0

	$4.6				$4.2
	Q1 FY24	Q2 FY24	Q3 FY24	Q4 FY24	Q1 FY25
	YTD	YTD	YTD	YTD	YTD
PY	$(3.8)	$9.2	$15.7	$28.8	$4.6	PY
Y/Y Change	NM	+97.0%	+21.1%	+23.9%	-8.3%	Y/Y Change

1See additional information at the end of this presentation regarding non-GAAP financial measures. NM = not meaningful

Free cash flow1

			$15.1
	$9.0
		$4.3
$0.2
				$(0.4)
Q1 FY24	Q2 FY24	Q3 FY24	Q4 FY24	Q1 FY25
YTD	YTD	YTD	YTD	YTD
$(7.3)	$1.7	$3.6	$12.0	$0.2
NM	+414.0%	+19.4%	+26.2%	NM

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• Operating cash flow decreased $0.4 billion primarily due to changes in working capital assets and liabilities, including timing impacts, partially offset by an increase in cash provided by operating income
• Free cash flow1 decreased $0.6 billion due to the decrease in operating cash flow as well as an increase of $0.2 billion in capital expenditures to support strategic investments

Returns to shareholders

Dividends and share repurchases

Amounts in billions, except as noted. Dollar amounts may not recalculate due to rounding.

$0.7	$0.5	$0.1	$1.5	$1.1
$1.5	$1.5	$1.5	$1.5	$1.7

	Q1 FY24		Q2 FY24	Q3 FY24	Q4 FY24	Q1 FY25
Returns to			Dividends			Share repurchases
$2.2	$2.0	$1.6	$3.0	$2.7
shareholders

• Share repurchases during the quarter totaled $1.1 billion representing 18.0 million shares, at an average price of $59.05 per share
• Remaining share repurchase authorization is $15.5 billion

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Returns

Return on assets (ROA)

Return on investment (ROI)1

15.0%

• ROI1 increased primarily as a result of

7.9%

15.0%

an increase in operating income,

primarily due to lapping opioid legal

charges and business reorganization

6.5%

6.6%

14.1%

and restructuring charges recorded

in the comparative trailing twelve

5.6%

months, as well as improvements in

business performance

4.5%

• Partially offset by an increase in

12.8%

average invested capital primarily

12.7%

due to higher purchases of property

and equipment

Q1 FY24

Q2 FY24

Q3 FY24

Q4 FY24

Q1 FY25

Q1 FY24

Q2 FY24

Q3 FY24

Q4 FY24

Q1 FY25

Y/Y Change

-100bps

-20bps

+280bps

+200bps

+340bps

Y/Y Change

-120bps

-100bps

+130bps

+230bps

+230bps

1See additional information at the end of this presentation regarding non-GAAP financial measures.

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