Walmart (NASDAQ: WMT) is one of several companies the Federal Trade Commission (FTC) reported on Oct. 28, 2026 to have ordered to disclose how they use personal data to set prices and pay, according to press reports. The order is an information request, not a reported finding of wrongdoing. It matters because Walmart's profit margins improved in its latest quarter, and investors may ask how any rule on personalized pricing could affect a business with thin margins.
Market data is current as of Oct. 28, 2026. Financial figures cover Walmart's second fiscal quarter of 2027, ended July 31, 2026.
Key facts
- Oct. 28, 2026: WMT was priced at $118.77, down 0.46% on the latest quote. Its 52-week range is $98.88 to $135.16, and its market value is $945.18B.
- Oct. 28-29, 2026: Reuters, the New York Post, Business Insider and others reported that the FTC demanded data from Walmart, Uber, Delta, Target and other companies on personalized pricing.
- Quarter ended July 31, 2026 (Q2 FY2027): revenue was $187.94B, up 5.9% from a year earlier. Operating income was $9.38B and net income was $6.37B, down 9.4% from a year earlier.
- Aug. 20, 2026: Walmart reported earnings per share (EPS) of $0.81 against analysts' estimate of $0.742, and revenue of $187.94B against an estimate of $186.64B. The $0.81 is the reported EPS compared with estimates, while the $0.8 in the table below is diluted EPS under standard accounting (GAAP), so the two are different measures.
- Next earnings date, Nov. 19, 2026: analysts estimate EPS of $0.638 and revenue of $187.24B.
What happened
On Oct. 28, 2026, news outlets reported that the FTC had ordered a group of companies, including Walmart, to share how they use customers' personal data to set prices and pay. "Personalized pricing" means showing different shoppers different prices based on what a company knows about them, such as location, browsing history or past purchases.
The reports describe a demand for information, which regulators typically use to study a practice before deciding whether to act. The material we reviewed does not say Walmart has been accused of anything, and it does not include a Walmart response. We will not guess at the outcome.
The same day, Walmart announced something much more ordinary. According to its release, its Holiday Meal Basket is returning with more food than last year, available through Christmas Eve, with fast delivery offered. The company framed it as a way to help families spend less on a holiday meal. The release is about low prices, and the FTC story is about how prices are set. Read together, they show why pricing is central to Walmart's business.
Why it matters for investors
Margins are the cushion, and they improved. Walmart earns a small profit on each dollar of sales, so changes in pricing rules or pricing tools can matter. In the latest quarter the margins looked better than in recent quarters:
| Quarter ended | Gross margin | Operating margin | |---|---|---| | July 31, 2025 | 25.2% | 4.1% | | Oct. 31, 2025 | 25.0% | 3.7% | | Jan. 31, 2026 | 24.7% | 4.6% | | April 30, 2026 | 25.1% | 4.2% | | July 31, 2026 | 26.1% | 5.0% |
The table shows that gross margin (what is left after the cost of goods) and operating margin (what is left after running costs) both reached their highest levels in this set in the latest quarter. If regulators ever restricted data-driven pricing, that profit gain is the kind of thing investors would ask about. Nothing in our data links Walmart's margin gain to personalized pricing, so we make no such claim.
Sales grew in every segment. Walmart U.S. revenue was $125.19B, up from $120.91B a year earlier. Walmart International was $35.20B, up from $31.20B. Sam's Club was $25.71B, up from $23.64B.
Net income fell even as operating income rose. Operating income was higher than a year earlier, but net income was lower. That gap means items below the operating line, such as investment gains or losses, taxes or interest, pulled the bottom line down. Our data does not break those items out, so check Walmart's filing for the cause.
Cash flow rebounded. Operating cash flow was $14.97B in the latest quarter, and capital spending was $7.50B, leaving free cash flow (cash left after investing in the business) of $7.47B. In the quarter ended April 30, 2026, free cash flow was negative $1.95B, so cash generation swings from quarter to quarter. In the latest quarter Walmart spent $3.02B on share buybacks and $1.97B on dividends, more on buybacks than in the quarters just before it.
Balance sheet. At July 31, 2026, Walmart held $11.53B in cash and short-term investments against $73.75B of total debt, for net debt of $62.23B. Shareholders' equity was $98.24B. Its Piotroski score (a 0-9 financial health check) is 6, and its Altman Z-score (a bankruptcy-risk gauge, where higher is safer) is 6.24.
Valuation versus peers. On trailing 12-month earnings, WMT trades at a price-to-earnings (P/E) ratio of 42.88. Peers in the same sector look like this:
| Company | P/E | Net margin | |---|---|---| | Walmart (WMT) | 42.88 | 3.0% | | Costco (COST) | 47.29 | 3.0% | | BJ's Wholesale (BJ) | 22.44 | 2.6% | | Dollar General (DG) | 16.32 | 3.9% | | Dollar Tree (DLTR) | 15.51 | 8.0% |
Walmart's net margin matches Costco's, and its P/E is slightly lower. The dollar-store chains and BJ's trade at lower P/E ratios. Other WMT multiples are price-to-sales of 1.28, enterprise value to EBITDA (a measure of operating earnings) of 21.54, price to free cash flow of 69.97 and a dividend yield of 0.8%.
What analysts think. Of 66 ratings, 47 are Buy, 16 are Hold and 3 are Sell, for a consensus of "Buy." The average price target is $130.05, the median is $130.00, and targets range from $110.00 to $155.00. Deutsche Bank upgraded the stock from Hold to Buy on Oct. 15, 2026, and Evercore ISI maintained its Outperform rating on Oct. 20, 2026. One model estimate, the FMP discounted cash flow value, is $114.96 per share. It is a model output, not a forecast from us.
Stock Expert AI's MoonshotScore. Walmart's MoonshotScore V2 is 70.5, rated Strong. Compared with its sector, growth scores 84, momentum 74, safety 72 and quality 70. Valuation scores just 22, which is the weak spot and matches the high P/E above.
Risks to keep in view
- Regulatory: the FTC request could lead to nothing, to further study or to rules. The outcome is unknown, and the cost to Walmart is unquantified.
- Valuation: the 22 valuation score and the P/E of 42.88 are high, and a high multiple can leave less room for disappointment.
- Earnings quality: net income fell from a year earlier even as sales grew.
- Insider selling: among the 30 most recent insider filings, those dated in the last 90 days show 0 open-market purchases and 12 sales. Insider sales are common and have many causes, but there were no purchases.
- Near-term bar: the $0.638 EPS estimate for the next report is below the $0.81 reported in August, so investors will watch the guidance and the margin trend, not just the headline figure.
What to watch next
1. Nov. 19, 2026: Walmart's next earnings report, against estimates of $0.638 EPS and $187.24B revenue. Check whether operating margin holds near its recent level. 2. FTC follow-up: whether Walmart comments on the request, and whether the agency publishes findings or proposes limits on personalized pricing. 3. Cash flow: whether free cash flow stays positive after the negative quarter ended April 30, 2026. 4. Holiday season: whether low-price promotions like the meal basket affect margins in the coming quarters.
Frequently asked questions
Q: Why did the FTC order Walmart to share pricing data?
According to press reports, the FTC wants to understand how Walmart and other large companies use personal data to set prices and pay. The reports describe a request for information from many companies, not a charge against Walmart.Q: Is Walmart stock a good buy after the FTC news?
We do not give buy or sell advice. The stock was priced at $118.77 as of Oct. 28, 2026, down 0.46%. Analysts' average price target is $130.05, and our MoonshotScore is 70.5 (Strong), with valuation the weakest pillar at 22.Q: How profitable was Walmart in its latest quarter?
Walmart's operating margin was 5.0% in the quarter ended July 31, 2026, the highest of the last several quarters in our data. Revenue was $187.94B and net income was $6.37B, which was lower than a year earlier.This is educational content, not investment advice. Past performance does not guarantee future results.