How Walmart Makes Money

Walmart U.S. is the company’s biggest generator of revenue and profits

Reviewed by JeFreda R. Brown

Walmart Inc. (WMT) operates a worldwide network of retail stores as well as an e-commerce business. The company is known for its “everyday low prices” strategy in selling a wide variety of merchandise, including home goods, apparel, electronics, food, and more. The company operates in 19 countries, with more than 10,500 stores, clubs, and e-commerce sites. It employs approximately 2.1 million people, with the large majority of employees based in the U.S.

Walmart’s competitors include both traditional retailers such as Target Corp. (TGT) and e-commerce businesses like Amazon.com Inc. (AMZN).

Key Takeaways

• Walmart is a global retailer selling a wide variety of merchandise at low prices at 10,600 stores and on its e-commerce sites.
• Walmart’s International segment was the fastest-growing segment in Q1 FY 2024.
• The company raised its wages for approximately 7,000 pharmacists and opticians in 2023.
• Walmart announced it was opening 70 new specialty pharmacies across the U.S. specifically to help those with HIV.

Walmart’s Financials

Walmart announced in November 2024 financial results for Q3 of its 2025 fiscal year (FY), the three-month period ending Oct. 31, 2024. The company posted net income attributable to its shareholders of $4.58 billion, an increase of 910.4% year over year (YOY). Revenue rose to $169.6 billion, an increase of 5.5% year over year (YOY). Gross profit rose 24.2% YOY. Operating income, which Walmart uses as a profitability metric for its individual business segments, rose 8.2% YOY to $6.7 billion.

Walmart said that all segments experienced revenue growth. Global e-commerce net sales were up 27%. There was also strong growth in global membership income, which grew by 22%. The gross profit rate of 24.2% reflects improved inventory management as well as a favorable business mix in Walmart US and International.

Walmart’s Business Segments

Walmart divides its operations into three reportable segments: Walmart U.S., Walmart International, and Sam’s Club. The first two of these segments represent Walmart-branded stores and products on a geographical basis, while the third represents the Sam’s Club warehouse store.

Walmart only provides segment profits measured by operating income, which is a profit metric that excludes several expenses, such as taxes and interest on loans, that are included in overall profit, called net income. As mentioned above, Walmart reported operating income for Q3 FY 2025 of $6.7 billion.

Besides the three segments represented below, Walmart also reported $1.6 billion of revenue for Q3 FY 2025 under the category “membership and other income.”

Note

Walmart sells everything from apparel to food and home goods to medicine, but the retail giant no longer sells e-cigarettes, handguns, and ammunition for handguns.

Walmart U.S.

Walmart U.S. is by far the largest of the company’s segments. It represents Walmart stores in the U.S., including Washington, D.C., and Puerto Rico. This segment includes both “Walmart” and “Walmart Neighborhood Market” stores, as well as multiple e-commerce brands.

Walmart U.S. had net sales of $114.9 billion, making up 68.4% of total sales for Walmart. Sales in this quarter grew 5.0% YOY. The segment reported an operating income of $5.4 billion, an 9.1% YOY increase, accounting for 75.0% of Walmart’s total operating income.

Walmart International

Walmart International includes Walmart’s operations outside of the U.S. The company has wholly-owned subsidiaries in Africa, Asia, Central America, and elsewhere around the world. Walmart International includes supercenters, supermarkets, hypermarkets, warehouse clubs, and e-commerce sites.

Walmart International had net sales of $30.3 billion, making up 18.0% of the total sales for Walmart. Sales in this quarter grew 8% YOY. The segment reported an operating income of $1.2 billion, a 7.8% YOY increase, accounting for 16.7% of Walmart’s total operating income.

Sam’s Club

Sam’s Club is a membership-only warehouse club that operates across most of the U.S. Unlike the other two segments, membership income is a major contributor to this segment’s operating income. Sam’s Club also includes e-commerce sales through samsclub.com.

Sam’s Club had net sales of $22.9 billion, making up 13.6% of total sales for Walmart. Sales in this quarter grew 3.9% YOY. The segment reported an operating income of $600 million, a6.9% YOY decrease, accounting for 8.3% of Walmart’s total operating income.

Walmart’s Recent Developments

In January 2024, Walmart announced that it was raising wages for store managers from $117,000 to $128,000 a year and giving them up to $20,000 in company stock annually. Annual bonuses of up to 200% of a store manager’s salary could be also handed out, depending on a store’s profit. The company had not changed store managers’ pay structure in over a decade.

In June 2023, the company announced that it was opening 70 new HIV-focused Specialty Pharmacies of the Community (SPOC) in locations around the U.S. The reason is to continue helping individuals with HIV who need specialty care.

How Much Does Walmart Pay Its Hourly Workers?

As of November 2024 the average hourly pay for a Walmart employee is $24.84, according to ZipRecruiter. Frontline associates, according to Walmart, make more than $17.50 an hour.

What Is Walmart’s Primary Source of Revenue?

Retail sales are the company’s main source of revenue. There are over 10,500 stores across the globe, with the great majority in the U.S., and online sales as well. Walmart U.S. is the company’s largest business segment and accounts for 75% of the company’s operating income.

Does Walmart Have a Drone Delivery Service?

Yes, Walmart started experimenting with drone deliveries in the Dallas–Fort Worth area in 2021 and expanded into other states in 2022. In August, however, the company ended drone deliveries in Arizona, Utah, and Florida but is continuing them in Texas, Arkansas, and Virginia. The reason for scaling back: high costs. Delivering a single package via drone can cost Walmart as much as $30.

The Bottom Line

Walmart is the largest retailer in the world, with more than 10,500 stores in 19 countries. Walmart U.S., the company’s largest revenue driver, had net sales of $114.9 billion in 3Q 2024, followed by Walmart International with $30.3 billion and Sam’s Club with $22.9 billion.