WalmartWMT -0.08%86 Gross Margin % is 25.14% as of Apr. 2026, which is 1% above its 10-year median of 24.89. GuruFocus rates WMT with a GF Score™ of 86/100 and a GF Value™ of $94.09 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 305 Retail - Defensive companies, Walmart ranks better than 53.77% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Walmart's Gross Profit for the
three
months ended in Apr. 2026 was $44,693 Mil. Walmart's Revenue for the
three
months ended in Apr. 2026 was $177,751 Mil. Therefore, Walmart's Gross Margin % for the quarter that ended in Apr. 2026 was 25.14%.
The historical rank and industry rank for Walmart's Gross Margin % or its related term are showing as below:
WMT'
s Gross Margin % Range Over the Past 10 Years
Min: 24.14 Med: 24.89 Max: 25.65
Current: 24.98
During the past 13 years, the highestGross Margin % of Walmart was 25.65%. The lowest was 24.14%. And the median was 24.89%.
WMT's Gross Margin % is ranked better than 53.77% of 305
companies
in the Retail - Defensive industry
Industry Median: 24.14
vs WMT: 24.98
Walmart had a gross margin of 25.14% for the quarter that ended in Apr. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Walmart was 0.00% per year.
Walmart (NAS:WMT) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Walmart had a gross margin of 25.14% for the quarter that ended in Apr. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Walmart Gross Margin % Related Terms
Walmart Gross Margin % Historical Data
* Premium members only.
The historical data trend for Walmart's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Discount Stores subindustry, Walmart's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Walmart Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Walmart's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Walmart's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Walmart (WMT) has a Gross Margin % of 25.14% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Walmart and its competitors. This is near median its historical median of 24.89. Over the past decade, Walmart's Gross Margin % has ranged from 24.14 to 25.65. According to the industry distribution chart, Walmart ranks #141 out of 305 companies in the Retail - Defensive industry, placing it in the top 46.2%.
Is Walmart's Gross Margin % too high?
Walmart's current Gross Margin % of 25.14% is near median its 10-year median of 24.89. Over the past 10 years, this metric has ranged from a low of 24.14 to a high of 25.65. The Retail - Defensive industry median Gross Margin % is 24.14. Walmart's value of 25.14% is 4.1% above this industry median. Based on the distribution chart, Walmart ranks #141 out of 305 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Walmart has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Walmart's Gross Margin % compare to COST and TGT?
According to the Retail - Defensive industry distribution chart, Walmart ranks #141 out of 305 companies for Gross Margin %. This puts Walmart in the upper half of its industry. The industry median Gross Margin % is 24.14. Walmart's value of 25.14% is 4.1% above this benchmark. Historically, Walmart's own Gross Margin % has ranged from 24.14 to 25.65 over the past decade. While the company's 10-year median is 24.89 vs. the industry median of 24.14, Walmart has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.14, based on 305 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Walmart's current Gross Margin % of 25.14% is 4.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Walmart and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Walmart's current Gross Margin % is 25.14%, which is near median its own 10-year median of 24.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Walmart stock overvalued right now?
Based on GuruFocus' analysis, Walmart (WMT) is currently considered Modestly Overvalued. The stock's GF Value™ is $94.09, compared to a current price of $115.69 — trading 23% above its estimated fair value. The current Gross Margin % is 25.14%, which is near median its 10-year median of 24.89 and 4.1% above the Retail - Defensive industry median of 24.14. Walmart's overall GF Score™ is 86/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Walmart (WMT), the current Gross Margin % is 25.14% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Walmart (WMT) Overvalued in 2026?
Based on GuruFocus' analysis, Walmart stock appears to be overvalued.
The current stock price of $115.69 is trading 23% above its estimated GF Value™ of $94.09.
GuruFocus considers Walmart to be Modestly Overvalued.
Key valuation signals for WMT:
Gross Margin %: 25.14% (near median its 10-year median of 24.89)
GF Value™: $94.09 vs. price of $115.69 (23% above fair value)
Industry Position: 4.1% above the Retail - Defensive median (#141 of 305)
No single metric tells the full story. See the WMT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Since its founding in 1962, Walmart has become the world's largest retailer, operating over 10,700 stores globally (including 4,600 namesake locations on its home turf and another 600 Sam's Club outlets) and growing its e-commerce presence, attracting 270 million customers weekly. In aggregate, the firm posted more than $713 billion in fiscal 2026 sales. Its core operations span three reporting segments: Walmart US (68% of fiscal 2026 sales), Walmart International (19%), and Sam's Club (13%).Within the US, nearly 60% of its $486 billion in fiscal 2026 revenue came from its grocery offerings, with another quarter from general merchandise. Internationally, Walmart's operations are concentrated in Mexico, though it also has budding exposure to India.
86GF Score
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