WMTCAUTIOUS

WMT Gross Margin Analysis

25.1%

Higher than 11% of Consumer Defensive sector peers

Updated 413h ago·SEC filings & market data

Key Takeaway

A gross margin of 25.1% means Walmart keeps $0.251 of each sales dollar after paying the direct costs of the goods it sells.

Sector Performance

11th percentile

WMT

25.1%

Sector Median

52.2%

Sector Avg

49.6%

Prior Period

24.7%(Apr 2026)

↑ Improving

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Deep Analysis

A gross margin of 25.1% means Walmart keeps $0.251 of each sales dollar after paying the direct costs of the goods it sells.

This is far below the sector median of 52.8%, placing Walmart in the 10th percentile among Consumer Defensive peers, so it trails most comparable companies on profitability per sale. The trend is not available: year-over-year change is N/A, and quarter-over-quarter change is N/A, so no direction can be inferred from recent history. The low margin relative to peers suggests structural pressure from its retail model, while the missing trend data leaves no evidence of improving or deteriorating performance. Given the weak level and no trend confirmation, the risk is that Walmart's low margin persists without a clear catalyst to close the gap. This metric supports the overall CAUTIOUS verdict, as the gross margin undercuts sector norms and provides no positive momentum to offset that concern.

Frequently Asked Questions

What does the Gross Margin tell investors about WMT?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does WMT's Gross Margin compare to its sector?

WMT's Gross Margin of 25.1% compares to a Consumer Defensive sector median of 52.2%, placing it in the 11th percentile.

Who are WMT's closest peers by Gross Margin?

The closest Consumer Defensive peers by Gross Margin include: KDP (52.8%), ABEV (51.6%), CELH (48.3%), COTY (61.8%), PM (68.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.