"Walmart ( NYSE:WMT) generated $681 billion in revenue during fiscal 2025, translating to $1.87 billion per day. But here's the metric that matters more than that staggering topline number: Walmart's operating margin. Operating margin, operating income divided by revenue, tells you how much profit Walmart extracts from each dollar of sales after paying for inventory and running 4,600+ stores. In fiscal 2025, Walmart posted a 4.3% operating margin on $681 billion in revenue. That's $29.3 billion in operating income."
"Revenue scale is impressive. Operating margin reveals whether that scale translates to actual profitability. Discount retail operates on razor-thin margins- Target Corporation ( NYSE:TGT) runs at 4.6% operating margin, Costco Wholesale ( NASDAQ:COST) at 3.7%. Walmart's 4.3% sits comfortably in the middle, but the trend is what matters. That 4.3% is up from 3.3% in fiscal 2023, a full percentage point of margin expansion in two years. On $681 billion in revenue, every 0.1% of margin improvement equals $681 million in additional operating income."
Walmart generated $681 billion in revenue in fiscal 2025, equivalent to $1.87 billion per day, and reported $29.3 billion in operating income. The operating margin rose to 4.3%, up from 3.3% in fiscal 2023 and 4.2% in fiscal 2024, reflecting a full percentage point expansion over two years. The company improved per-dollar profitability through higher-margin initiatives including pharmacy services expansion, advertising ventures, and AI-assisted shopping across its 4,600+ stores. Discount retail peers run thin margins (Target 4.6%, Costco 3.7%), so small margin shifts materially impact income; every 0.1% equates to $681 million. Sustained margin above 4.5% would indicate successful monetization of tech investments, while compression below 4% would signal competitive pressure or failed initiatives.
Read at 24/7 Wall St.
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