Financial presentation

to accompany management commentary

FY24 Q2
Guidance Metric Q3

The following guidance reflects the Company’s Consolidated net sales (cc) Increase approximately 3.0%
expectations for the third quarter and fiscal
year 2024 and is provided on a non-GAAP Consolidated operating income (cc) Increase approximately 1.0%
basis as the Company cannot predict certain
Adjusted EPS $1.45 to $1.50
elements that are included in reported GAAP
results, such as the changes in fair value of the
Company’s equity and other investments.
Growth rates reflect an adjusted basis for prior Metric FY24
2

year results. Additionally, the Company’s

guidance assumes a generally stable consumer Consolidated net sales (cc) Increase approximately 4.0% to 4.5%
and continued pressure from its mix of
products and formats globally. Consolidated operating income (cc) Increase approximately 7.0%-7.5%, including an expected 30bps tailwind from LIFO

The Company’s fiscal year guidance is based on Interest, net Increase approximately $500M v. LY
the following previously disclosed FY23
Effective tax rate Unchanged at 26.5%
figures: Net sales: $605.9 billion, adjusted
1 1
operating income : $24.6 billion, adjusted EPS Non-controlling interest Approximately $0.26 headwind to EPS
$6.29.
Adjusted EPS $6.36 to $6.46, including an expected $0.05 impact from LIFO

Capital expenditures Flat to up slightly v. LY, unchanged from prior guidance

1
For relevant reconciliations, see Q4 FY23 earnings release furnished on Form 8-K on February 21, 2023.
2
Our expectations are for Walmart U.S. and International to grow slightly faster than our prior view and for Sam’s Club growth to be consistent with our February guidance.
CC = Constant currency
 Total Revenue
1
Total Revenue (cc) $161.1 billion, up +5.4%
Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding.

• Total revenue reached $161.6

billion with strength across all
operating segments
$164
$161.6 • Positively affected by $0.6 billion
from currency fluctuations
$152.9 $152.8 $152.3
• eCommerce net sales up 24%
globally led by omnichannel,
including pickup and delivery

• eCommerce net sales globally

$24B, reaching 15% of net sales
Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
• Strong growth in membership
Y/Y Change income, globally
+8.4% +8.7% +7.3% +7.6% +5.7%

• Other income negatively affected

1
Y/Y Change (cc)
+9.1% +9.8% +7.9% +7.7% +5.4%
by lapping Chile insurance
proceeds last year

1
See additional information at the end of this presentation regarding non-GAAP financial measures.
Gross Profit Rate
Gross Profit Rate +50bps to 24.0%

24.0% • Gross profit rate increased due

to lapping last year’s elevated
23.7% 23.7% levels of markdowns and supply
chain costs
23.5%
• Partially offset by ongoing
category mix pressure as
grocery and health & wellness
22.9%
sales outperform general
merchandise

• Walmart US sales mix shifted

Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 240bps from general
merchandise to grocery and
health & wellness
Y/Y Change -132bps -89bps -83bps -18bps +50bps
Operating Expenses
As a percentage of net sales, +33bps to 20.3%

22.8%

• Expense deleverage reflects

20.3% 20.4% 20.3% increased variable pay, higher tech
19.9% expenses, and increased store
remodel costs in the U.S.

• Partially offset by robust leverage

in International on strong sales
growth
Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24

Y/Y Change -45bps +144bps -44bps -58bps +33bps

 Operating Income
1
Adjusted Operating Income of $7.4 billion, up 8.1%
Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding.

1
Operating Income Adjusted Operating Income
1
• Adjusted operating income up
$7.3 $7.4 8.1% relative to 5.9% growth in
$6.9 $6.9 net sales
$6.4
$6.2 $6.2
$6.0 • Net income margin increased
$5.6 ~150bps and Adjusted EBITDA
1
margin increased ~10bps over
last year

• Q3 FY23 and Q4 FY23 negatively

affected by discrete charges of
$2.7 $3.3B and $0.8B, respectively,
associated with the opioid legal
settlement frameworks, and
Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 business reorganization and
restructurings
Y/Y Change -6.8% -53.5% -5.5% +17.3% +6.7% Y/Y Change -6.8% +3.9% +6.9% +17.3% +8.1%
1 1
Y/Y Change (cc) -6.0% -52.8% -6.5% +16.0% +4.9% Y/Y Change (cc) -6.0% +4.6% +6.3% +16.0% +6.3%

1
See additional information at the end of this presentation regarding non-GAAP financial measures.
 EPS
1
Adjusted EPS of $1.84, up 4.0%

1
EPS Adjusted EPS

$2.92
1
$1.77 $1.84 • Adjusted EPS excludes the net
$2.32 $1.71
$1.50 $1.47
effects of $1.08 from net gains
$1.88 on equity and other investments
and an incremental opioid
settlement expense
$0.62

Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24

$(0.66)
Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
PY $1.78 $1.45 $1.53 $1.30 $1.77

Y/Y Change +23.7% NM +81.3% -16.2% +55.3% Y/Y Change -0.6% +3.4% +11.8% +13.1% +4.0%

1
See additional information at the end of this presentation regarding non-GAAP financial measures.
NM = not meaningful
 Cash Flow
Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding.

1
Operating Cash Flow Free Cash Flow

$12.0
$28.8
$9.0 • Operating cash flow increased
primarily due to moderated
$18.2 levels of inventory purchases
$15.7
and timing of certain payments
$9.2 $3.6
• Free cash flow increased due to
$4.6 $1.7 the increase in operating cash
$0.2 flow, partially offset by an
increase of $1.7B in capital
Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 expenditures to support the
YTD YTD YTD YTD YTD YTD YTD YTD YTD YTD
company's investment strategy

PY $12.4 $16.3 $24.2 $(3.8) $9.2 PY $7.4 $7.7 $11.1 $(7.3) $1.7

Y/Y Change -25.6% -3.6% +19.3% NM +97.0% Y/Y Change -76.4% -52.8% +8.2% NM +414.0%

1
See additional information at the end of this presentation regarding non-GAAP financial measures.
NM = not meaningful
Returns to Shareholders
Through dividends and share repurchases
Amounts in billions, except as noted. Dollar changes may not recalculate due to rounding.

$3.3
$3.0
• Share repurchases during quarter
totaled $485 million representing
3.2 million shares at an average
$1.2
price of $152.78 per share
$0.7 $0.5
$1.5 $1.5 $1.5 $1.5 $1.5 • Remaining share repurchase
authorization is $18.2 billion
Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24

Dividends Share Repurchase

Returns to $4.9 $4.5 $2.7 $2.2 $2.0

Shareholders
 Returns

Return on Assets (ROA) Return on Investment (ROI)

1

5.8% • ROI declined on a trailing 12-

5.6% 13.8%
month basis as a result of discrete
charges for the opioid legal
settlement frameworks in Q3 FY23
4.6% 4.5% and business reorganization and
restructurings in Q4 FY23
12.8% 12.8%
12.7% 12.7%
3.7% • Discrete charges totaled 140 bps
headwind to ROI

Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24

Y/Y Change +140bps +40bps -100bps -100bps -20bps Y/Y Change -100bps -170bps -220bps -120bps -100bps

1
See additional information at the end of this presentation regarding non-GAAP financial measures.
 1
Walmart U.S. Comp Sales
Net Sales +5.4% , eCommerce +24%

• Comp sales +6.4% with strength in

8.2% 8.3% grocery and health & wellness, offset
7.4% by softness in general merchandise
6.5% 6.4% • Sales growth included increases in both
store and digital transactions

• Strong market share gains in grocery

• eCommerce led by double-digit growth

in store-fulfilled pickup and delivery
and 36% increase in advertising
Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
• Weekly active digital users grew >20%
eCommerce ~100bps ~80bps ~140bps ~270bps ~230bps
Contribution
• Marketplace customer counts +14%

1
Comp sales for the 13-week period ended July 28, 2023 compared to the 13-week period ended July 29, 2022, and excludes fuel.
Gross profit rate
+40 bps
Walmart U.S.
• The lapping of last year's elevated markdowns and supply chain costs benefited margins
• Benefited from managing prices to reflect elevated levels of cost inflation
• Partly offset by unfavorable product mix shifts as grocery and health & wellness increased
nearly 240 bps as a portion of sales mix, while general merchandise sales declined
Store Remodels: 165
• Growth initiatives like marketplace and advertising contributed to margin improvement
Pickup: ~4,600 stores
Operating expenses as a percentage of net sales
+28 bps Delivery from Store: >4,000
• Reflects higher variable pay relative to last year when we were below our planned
performance, as well as technology investments
• Store remodel costs increased as we continue rollout of an elevated store experience

Operating income
$6.1 billion, +7.6%
• Reflects increased gross margins and Walmart+membership income, partially offset by
expense deleverage

Inventory
-7.6%
• In-stock levels and the composition of inventory mix has improved
• Maintaining discipline in buying general merchandise due to macro uncertainty
Walmart U.S.
Merchandise category performance details

Category Comp Comments

• Strong comps reflected continued market share gains in

dollars and units (according to Nielsen), and growth in
private brand penetration (+40 bps)
• Grocery inflation increased +HSD in Q2 (but moderated
Grocery + high single-digit 400 bps versus Q1), and up +low-20s on a two-year stack
• Solid increase in food units sold
• Consumables led by strength in pet and personal care
products due in part to inflation

• Strong pharmacy sales reflected increased script counts,

Health & Wellness + high teens higher mix of branded versus generic prescriptions,
strength in immunizations, and branded drug inflation

• General merchandise sales reflected softness in

discretionary categories including apparel, home, and
General Merchandise - low single-digit sporting goods
• Automotive and back-to-school categories performed well
Walmart International Net Sales
1
Net Sales (cc) $27.0 billion, +11.0%

1
$27.6 $27.6
• Strong sales growth (cc) led by
double-digit growth in Walmex, China
$26.6 and Flipkart
$25.3
• Sales positively affected by $0.6
$24.4 billion, or 2.2%, due to currency rate
fluctuations

• eCommerce sales grew 26% with

Net sales
strength in China, Flipkart and
Walmex.

• Continued strong growth in food and

Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
consumables as well as an increase in
Y/Y Change +5.7% +7.1% +2.1% +12.0% +13.3% private brands penetration across
1,2 markets
Net Sales (cc) $24.4 $26.8 $28.5 $26.8 $27.0
1
Y/Y Change (cc) +9.9% +13.3% +5.5% +12.9% +11.0%

1
See additional information at the end of this presentation regarding non-GAAP financial measures.
2
For Q2 FY23, net sales constant currency reflects reported results for comparison to current quarter growth in constant currency.
Walmart Gross profit rate
-37 bps

International
• Format and channel mix changes in China, consistent with prior quarters
• Continuing category mix shifts towards food and consumables

Strong local businesses Operating expenses as a percentage of net sales

powered by Walmart -129 bps
• Leverage driven by strong sales growth driving fixed cost leverage across most markets
• Benefited by format mix changes

Operating income
1
$1.2 billion, +14.1%; $1.1 billion (cc) , +2.2%
• Growth rate impacted 20 percentage points from lapping last year’s $0.2b insurance
benefit related to the disruption in Chile in fiscal year 2020

Inventory
+6.2%
• Primarily due to currency rate fluctuations

1
See additional information at the end of this presentation regarding non-GAAP financial measures.
 1,2
Walmex
Net Sales (cc): $10.7 billion, +10.1%

Sales
• Double-digit growth with continued
strength in food and consumables
• Opened more than 120 new stores in
past twelve months, including 22 new
11.5% 11.7% stores in the quarter
10.6%
9.3% • In Mexico, comp sales grew 8.5% driven
8.7%
by Sam’s Club and Bodega
• Strong performance during the annual
“Hot Sale” event
Comparable Gross profit rate Relatively flat
sales growth
• New sources of revenue offsetting price
investments
Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Operating expense rate Decrease

Net sales growth +12.7% +12.9% +11.8% +10.6% +10.1%

• Driven by strong sales growth partially
offset by continued investments in
eCommerce net associates and strategic priorities
+17% +17% +14% +17% +21%
sales growth
Operating income $ Increase

1
Walmex includes the consolidated results of Mexico and Central America
2
Results are presented on a constant currency basis. Net sales and comparable sales are presented on a nominal, calendar basis and
include eCommerce results. Change is calculated as the change versus the prior year comparable period.
 1
Canada
Net Sales (cc): $6.1 billion, +5.1%

Sales
• Continued momentum in food and
consumables with softness in general
merchandise

10.3% • eCommerce investments in customer

experience showing positive results

Gross profit rate Relatively flat

6.3%
5.7% • Primarily from higher shrink and food
5.2% 4.8% and consumables mix, offset by
efficiencies in logistics and lower
Comparable import costs
sales growth

Operating expense rate Increase

Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 • Higher maintenance costs and
planned investments in eCommerce
Net sales growth +10.0% +5.5% +5.9% +6.7% +5.1% technology

eCommerce net
-9% +3% -3% -2% +4% Operating income $ Decrease
sales growth

1
Results are presented on a constant currency basis. Net sales and comparable sales are presented on a nominal, calendar basis and include
eCommerce results. Change is calculated as the change versus the prior year comparable period.
 1
China
Net Sales (cc): $4.1 billion, +21.7%

Sales
• Continued strength in Sam’s Club and
eCommerce
• Both Sam's and Hyper formats with
25.5% positive traffic online and offline
• eCommerce penetration at 47%
17.2% Gross profit rate Decrease
14.1% 13.3% • Mix effect from continued growth in
lower margin formats and channels
Comparable 5.6%
sales growth Operating expense rate Decrease
• Driven by strong sales growth,
operational efficiencies, and higher
Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
penetration of Sam’s Club
Net sales growth +15.9% +6.9% +13.5% +28.3% +21.7%
Operating income $ Increase
eCommerce
+77% +63% +70% +54% +44%
net sales growth

1
Results are presented on a constant currency basis. Net sales and comparable sales are presented on a nominal, calendar basis and include
eCommerce results. Change is calculated as the change versus the prior year comparable period.
 1
Sam’s Club U.S. Comp Sales
Net sales with fuel -0.3%, Net sales without fuel +5.3%, eCommerce +18%

17.5%
• Strong comp sales driven by solid increases in
ticket, transactions, and units sold
12.7%
11.9%12.2%
◦ Ticket without fuel +2.5%
9.5% 10.0%
◦ Transactions without fuel +2.9%
7.0%
5.5% • Strength in food and consumables, and
4.2% healthcare
• Gained market share in grocery and general
merchandise, including apparel, home, and
(0.2)% toys (according to Circana)
• eCommerce +18%, led by curbside
Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 • Scan & Go penetration is up nearly 570 bps

With fuel Without fuel

eComm Cont. ~170bps ~120bps ~120bps ~160bps ~150bps

without fuel

1
Comp sales for the 13-week period ended July 28, 2023 compared to the 13-week period ended July 29, 2022.
Gross profit rate
+135 bps, without fuel +143 bps Sam’s Club U.S.
• Rate increase primarily due to lapping elevated markdowns last year
• LIFO expense $48M
Helping our members
Operating expenses as a percentage of net sales share more, serve more
+107 bps, without fuel +64 bps
and live more
• Lower fuel sales negatively affected expense leverage
• Without fuel, deleverage primarily due to higher facilities costs and technology investments

Membership income
+7.0%
• Continued strength primarily due to Plus membership growth and renewals
• Member count strong with Plus penetration +130bps y/y

Operating income
$521M, +22.0%, without fuel $392M, +76.6%
• Lower LIFO charge this year ($48M) vs. last year ($123M) benefited operating income

Inventory
-9.5%
• Lapping supply chain challenges and reduced general merchandise demand last year as well as
an elevated LIFO reserve adjustment
• Pleased with flow of inventory as merchandise is closer to customers, in Clubs and DCs
Sam’s Club U.S.
Category comparable sales

Category Comp Comments

• Produce & floral, prepared foods, bakery, and fresh meat

Fresh / Freezer / Cooler + mid single-digit performed well

Grocery and Beverage + high single-digit • Drinks, dry grocery, and snacks showed strength

• Paper goods, tabletop & bags, pet supplies, and laundry &
Consumables + high single-digit home care performed well

• Softness in furniture and toys, partially offset by strength

Home and Apparel - low single-digit in tires

Technology, Office and • Softness in office supplies and consumer electronics,

- low double-digits
Entertainment partially offset by strength in gift cards

Health and Wellness + mid-teens • Pharmacy and over the counter performed well
 Safe harbor and non-GAAP measures

This presentation and related management commentary contains statements that may be "forward-looking statements" as defined in, and are intended to enjoy the protection of the safe harbor for forward-
looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Assumptions on which such forward-looking statements are based are also forward-looking statements.
Our actual results may differ materially from those expressed in or implied by any of these forward-looking statements as a result of changes in circumstances, assumptions not being realized or other risks,
uncertainties and factors including: the impact of the COVID-19 pandemic on our business and the global economy; economic, capital markets and business conditions; trends and events around the world and in
the markets in which we operate; currency exchange rate fluctuations, changes in market interest rates and market levels of wages; changes in the size of various markets, including eCommerce markets;
unemployment levels; inflation or deflation, generally and in particular product categories; consumer confidence, disposable income, credit availability, spending levels, shopping patterns, debt levels and demand
for certain merchandise; the effectiveness of the implementation and operation of our strategies, plans, programs and initiatives; unexpected changes in our objectives and plans; the impact of acquisitions,
investments, divestitures, store or club closures, and other strategic decisions; our ability to successfully integrate acquired businesses, including within the eCommerce space; changes in the trading prices of
certain equity investments we hold; initiatives of competitors, competitors' entry into and expansion in our markets, and competitive pressures; customer traffic and average ticket in our stores and clubs and on
our eCommerce websites; the mix of merchandise we sell, the cost of goods we sell and the shrinkage we experience; trends in consumer shopping habits around the world and in the markets in which we
operate; our gross profit margins; the financial performance of Walmart and each of its segments, including the amounts of our cash flow during various periods; changes in the credit ratings assigned to our
commercial paper and debt securities by credit rating agencies; the amount of our net sales and operating expenses denominated in the U.S. dollar and various foreign currencies; transportation, energy and
utility costs; commodity prices and the price of gasoline and diesel fuel; supply chain disruptions and disruptions in seasonal buying patterns; the availability of goods from suppliers and the cost of goods acquired
from suppliers; consumer acceptance of and response to our stores, clubs, eCommerce platforms, programs, merchandise offerings and delivery methods; cyber security events affecting us and related costs and
impact to the business; developments in, outcomes of, and costs incurred in legal or regulatory proceedings to which we are a party or are subject, and the liabilities, obligations and expenses, if any, that we may
incur in connection therewith; casualty and accident-related costs and insurance costs; the turnover in our workforce and labor costs, including healthcare and other benefit costs; consumer enrollment in health
and drug insurance programs and such programs’ reimbursement rates and drug formularies; our effective tax rate and the factors affecting our effective tax rate, including assessments of certain tax
contingencies, valuation allowances, changes in law, administrative audit outcomes, impact of discrete items and the mix of earnings between the U.S. and Walmart's international operations; changes in existing
tax, labor and other laws and regulations and changes in tax rates including the enactment of laws and the adoption and interpretation of administrative rules and regulations; the imposition of new taxes on
imports, new tariffs and changes in existing tariff rates; the imposition of new trade restrictions and changes in existing trade restrictions; adoption or creation of new, and modification of existing, governmental
policies, programs, initiatives and actions in the markets in which Walmart operates and elsewhere and actions with respect to such policies, programs and initiatives; changes in accounting estimates or
judgments; the level of public assistance payments; natural disasters, changes in climate, geopolitical events and catastrophic events; and changes in generally accepted accounting principles in the United States.

Our most recent annual report on Form 10-K and subsequent quarterly report on Form 10-Q filed with the SEC discuss other risks and factors that could cause actual results to differ materially from those
expressed or implied by any forward-looking statement in the presentations. We urge you to consider all of the risks, uncertainties and factors identified above or discussed in such reports carefully in evaluating
the forward-looking statements in this release. Walmart cannot assure you that the results reflected in or implied by any forward-looking statement will be realized or, even if substantially realized, that those
results will have the forecasted or expected consequences and effects for or on our operations or financial performance. The forward-looking statements made in the presentation are as of the date of this
meeting. Walmart undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

This presentation includes certain non-GAAP measures as defined under SEC rules, including net sales, revenue, and operating income on a constant currency basis, adjusted EPS, free cash flow, return on
investment, and EBITDA and EBITDA margin. Refer to information about the non-GAAP measures contained in this presentation. Additional information as required by Regulation G and Item 10(e) of Regulation
S-K regarding non-GAAP measures can be found in our most recent Form 10-K and our Form 8-K furnished as of the date of this presentation with the SEC, which are available at stock.walmart.com.
Non-GAAP measures - ROI

We include Return on Assets ("ROA"), which is calculated in accordance with U.S. generally accepted accounting principles ("GAAP") as well as Return on Investment ("ROI")
as measures to assess returns on assets. Management believes ROI is a meaningful measure to share with investors because it helps investors assess how effectively Walmart is
deploying its assets. Trends in ROI can fluctuate over time as management balances long-term strategic initiatives with possible short-term impacts. We consider ROA to be
the financial measure computed in accordance with GAAP that is the most directly comparable financial measure to our calculation of ROI.

ROA was 5.6% percent and 5.8% percent for the trailing twelve months ended July 31, 2023 and 2022, respectively. The decrease in ROA was primarily due to the increase in
average total assets driven by higher purchases of property and equipment. ROI was 12.8% and 13.8% for the trailing 12 months ended July 31, 2023 and 2022, respectively.
The decrease in ROI was the result of a decrease in operating income primarily due to opioid legal charges and reorganization and restructuring charges recorded in Q3 and
Q4 of fiscal 2023 respectively, as well as an increase in average invested capital primarily due to higher purchases of property and equipment.

We define ROI as operating income plus interest income, depreciation and amortization, and rent expense for the trailing twelve months divided by average invested capital
during that period. We consider average invested capital to be the average of our beginning and ending total assets, plus average accumulated depreciation and average
amortization, less average accounts payable and average accrued liabilities for that period.

Our calculation of ROI is considered a non-GAAP financial measure because we calculate ROI using financial measures that exclude and include amounts that are included and
excluded in the most directly comparable GAAP financial measure. For example, we exclude the impact of depreciation and amortization from our reported operating income
in calculating the numerator of our calculation of ROI. As mentioned above, we consider ROA to be the financial measure computed in accordance with generally accepted
accounting principles most directly comparable to our calculation of ROI. ROI differs from ROA (which is consolidated net income for the period divided by average total
assets for the period) because ROI: adjusts operating income to exclude certain expense items and adds interest income; adjusts total assets for the impact of accumulated
depreciation and amortization, accounts payable and accrued liabilities to arrive at total invested capital. Because of the adjustments mentioned above, we believe ROI more
accurately measures how we are deploying our key assets and is more meaningful to investors than ROA. Although ROI is a standard financial measure, numerous methods
exist for calculating a company’s ROI. As a result, the method used by management to calculate our ROI may differ from the methods used by other companies to calculate
their ROI.
Non-GAAP measures – ROI (cont.)
The calculation of ROA and ROI, along with a reconciliation of ROI to the calculation of ROA, is as follows:

CALCULATION OF RETURN ON ASSETS

Trailing Twelve Months Ending
Jul 31, Oct 31, Jan 31, Apr 30, Jul 31,
(Dollars in millions) 2022 2022 2023 2023 2023
Numerator
Consolidated net income $ 14,015 $ 9,116 $ 11,292 $ 11,085 $ 13,991
Denominator
1
Average total assets $ 242,876 $ 246,254 $ 244,029 $ 245,598 $ 251,160
Return on assets (ROA) 5.8 % 3.7 % 4.6 % 4.5 % 5.6 %

Jul 31, Oct 31, Jan 31, April 30, Jul 31, Oct 31, Jan 31, April 30, Jul 31,
Certain Balance Sheet Data 2021 2021 2022 2022 2022 2022 2023 2023 2023
Total assets $ 238,552 $ 244,851 $ 244,860 $ 246,142 $ 247,199 $ 247,656 $ 243,197 $ 245,053 $ 255,121
Accumulated depreciation and amortization 98,346 100,168 102,211 104,295 105,963 107,628 110,286 113,164 115,878
Accounts payable 49,601 57,156 55,261 52,926 54,191 57,263 53,742 54,268 56,576
Accrued liabilities 23,915 24,474 26,060 21,061 23,843 27,443 31,126 27,527 29,239

1
The average is based on the addition of the account balance at the end of the current period to the account balance at the end of the prior period and dividing by 2
Non-GAAP measures – ROI (cont.)
The calculation of ROA and ROI, along with a reconciliation of ROI to the calculation of ROA, is as follows:

CALCULATION OF RETURN ON INVESTMENT

  Trailing Twelve Months Ending
Jul 31, Oct 31, Jan 31, Apr 30, Jul 31,
(Dollars in millions) 2022 2022 2023 2023 2023
Numerator
Operating income $ 23,851 $ 20,754 $ 20,428 $ 21,350 $ 21,812
+ Interest income 155 196 254 323 442
+ Depreciation and amortization 10,733 10,840 10,945 11,110 11,318
+ Rent 2,302 2,296 2,306 2,301 2,284
ROI operating income $ 37,041 $ 34,086 $ 33,933 $ 35,084 $ 35,856

Denominator
1
Average total assets $ 242,876 $ 246,254 $ 244,029 $ 245,598 $ 251,160
1
'+ Average accumulated depreciation and amortization 102,155 103,898 106,249 108,730 110,921
1
'- Average accounts payable 51,896 57,210 54,502 53,597 55,384
1
'- Average accrued liabilities 23,878 25,959 28,593 24,294 26,541
Average invested capital $ 269,257 $ 266,983 $ 267,183 $ 276,437 $ 280,156
Return on investment (ROI) 13.8 % 12.8 % 12.7 % 12.7 % 12.8 %

1
The average is based on the addition of the account balance at the end of the current period to the account balance at the end of the prior period and dividing by 2
 Non-GAAP measures – free cash flow

We define free cash flow as net cash provided by operating activities in a period minus payments for property and equipment made in that period. Net cash provided by
operating activities was $18.2 billion for the six months ended July 31, 2023, which represents an increase of $9.0 billion when compared to the same period in the prior year. The
increase is primarily due to moderated levels of inventory purchases and timing of certain payments. Free cash flow for the six months ended July 31, 2023 was $9.0 billion, which
represents an increase of $7.2 billion when compared to the same period in the prior year. The increase in free cash flow is due to the increase in operating cash flows described
above, partially offset by an increase of $1.7 billion in capital expenditures to support our investment strategy.

Free cash flow is considered a non-GAAP financial measure. Management believes, however, that free cash flow, which measures our ability to generate additional cash from
our business operations, is an important financial measure for use in evaluating the Company's financial performance. Free cash flow should be considered in addition to, rather
than as a substitute for, consolidated net income as a measure of our performance and net cash provided by operating activities as a measure of our liquidity. Additionally,
Walmart’s definition of free cash flow is limited, in that it does not represent residual cash flows available for discretionary expenditures, due to the fact that the measure does
not deduct the payments required for debt service and other contractual obligations or payments made for business acquisitions. Therefore, we believe it is important to view
free cash flow as a measure that provides supplemental information to our Condensed Consolidated Statements of Cash Flows. Although other companies report their free
cash flow, numerous methods may exist for calculating a company’s free cash flow. As a result, the method used by Walmart’s management to calculate our free cash flow may
differ from the methods used by other companies to calculate their free cash flow.
Non-GAAP measures – free cash flow (cont.)

The following table sets forth a reconciliation of free cash flow, a non-GAAP financial measure, to net cash provided by operating activities, which we believe to be the GAAP
financial measure most directly comparable to free cash flow, as well as information regarding net cash used in investing activities and net cash used in financing activities.

Year to Date Period Ended

(Dollars in millions) Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
Net cash provided by operating activities $ 9,240 $ 15,698 $ 28,841 $ 4,633 $ 18,201
Payments for property and equipment (capital expenditures) (7,492) (12,061) (16,857) (4,429) (9,216)
Free cash flow $ 1,748 $ 3,637 $ 11,984 $ 204 $ 8,985

1
Net cash used in investing activities $ (8,584) $ (12,965) $ (17,722) $ (4,860) $ (9,909)
Net cash provided by (used in) financing activities $ (1,400) $ (5,581) $ (17,039) $ 1,940 $ (3,309)

Year to Date Period Ended

(Dollars in millions) Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23
Net cash provided by (used in) operating activities $ 12,423 $ 16,291 $ 24,181 $ (3,758) $ 9,240
Payments for property and equipment (capital expenditures) (5,019) (8,588) (13,106) (3,539) (7,492)
Free cash flow $ 7,404 $ 7,703 $ 11,075 $ (7,297) $ 1,748

1
Net cash provided by (used in) investing activities $ 2,402 $ (1,530) $ (6,015) $ (4,558) $ (8,584)
Net cash provided by (used in) financing activities (11,559) (18,113) (22,828) 5,315 (1,400)

Y/Y Change in Free Cash Flow -76.4% -52.8% +8.2% NM +414.0%

1
"Net Cash used in investing activities" includes payments for property and equipment, which is also included in our computation of free cash flow.
NM = not meaningful
 Non-GAAP measures – constant currency

In discussing our operating results, the term currency exchange rates refers to the currency exchange rates we use to convert the operating results for countries where the
functional currency is not the U.S. dollar into U.S. dollars. We calculate the effect of changes in currency exchange rates as the difference between current period activity
translated using the current period's currency exchange rates and the comparable prior year period's currency exchange rates. Additionally, no currency exchange rate
fluctuations are calculated for non-USD acquisitions until owned for 12 months. Throughout our discussion, we refer to the results of this calculation as the impact of currency
exchange rate fluctuations. When we refer to constant currency operating results, this means operating results without the impact of the currency exchange rate fluctuations.
The disclosure of constant currency amounts or results permits investors to better understand Walmart’s underlying performance without the effects of currency exchange rate
fluctuations.

The table below reflects the calculation of constant currency for net sales for the Walmart International segment for the trailing five quarters and operating income for the
current quarter.
Three Months Ended
Walmart International
(Dollars in millions) Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
Net sales:
As reported $ 24,350 $ 25,295 $ 27,575 $ 26,604 $ 27,596
Currency exchange rate fluctuations 956 1,473 901 226 (574)
Net sales (cc) $ 25,306 $ 26,768 $ 28,476 $ 26,830 $ 27,022

PY Reported $ 23,035 $ 23,627 $ 26,997 $ 23,763 $ 24,350

% change (cc) +9.9% +13.3% +5.5% +12.9% +11.0%

Operating income:
As reported $ 1,190
Currency exchange rate fluctuations $ (124)
Operating income (cc) $ 1,066

PY Reported $ 1,043
% change (cc) +2.2%
 Non-GAAP measures – constant currency (cont.)

The table below reflects the calculation of constant currency for total revenues, net sales and operating income for the trailing five quarters.

Three Months Ended

Consolidated
(Dollars in millions) Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24
Total Revenue:
As reported $ 152,859 $ 152,813 $ 164,048 $ 152,301 $ 161,632
Currency exchange rate fluctuations 996 1,491 917 230 (576)
Total Revenue (cc) $ 153,855 $ 154,304 $ 164,965 $ 152,531 $ 161,056

PY Reported $ 141,048 $ 140,525 $ 152,871 $ 141,569 $ 152,859

% change (cc) +9.1% +9.8% +7.9% +7.7% +5.4%

Net sales:
As reported $ 151,381 $ 151,469 $ 162,743 $ 151,004 $ 160,280
Currency exchange rate fluctuations 956 1,473 901 226 (574)
Net sales (cc) $ 152,337 $ 152,942 $ 163,644 $ 151,230 $ 159,706

PY Reported $ 139,871 $ 139,207 $ 151,525 $ 140,288 $ 151,381

% change (cc) +8.9% +9.9% +8.0% +7.8% +5.5%

Operating income:
As reported $ 6,854 $ 2,695 $ 5,561 $ 6,240 $ 7,316
Currency exchange rate fluctuations 62 38 (57) (72) (124)
Operating income (cc) $ 6,916 $ 2,733 $ 5,504 $ 6,168 $ 7,192

PY Reported $ 7,354 $ 5,792 $ 5,887 $ 5,318 $ 6,854

% change (cc) -6.0% -52.8% -6.5% +16.0% +4.9%
Non-GAAP measures – Adjusted Operating Income

Adjusted operating income is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain charges included in operating income
calculated in accordance with GAAP. Management believes that adjusted operating income is a meaningful measure to share with investors because it best allows
comparison of the performance with that of the comparable period. In addition, adjusted operating income affords investors a view of what management considers
Walmart’s core earnings performance and the ability to make a more informed assessment of such core earnings performance as compared with that of the prior
year.
When we refer to adjusted operating income in constant currency, this means adjusted operating results without the impact of the currency exchange rate
fluctuations. The disclosure of constant currency amounts or results permits investors to better understand Walmart’s underlying performance without the effects of
currency exchange rate fluctuations. The table below reflects the calculation of adjusted operating income and adjusted operating income in constant currency,
when applicable, for the trailing five quarters.

Three Months Ended

(Dollars in millions) Q2 FY23 Q2 FY22 Q3 FY23 Q3 FY22 Q4 FY23 Q4 FY22 Q1 FY24 Q1 FY23 Q2 FY24 Q2 FY23
Operating income:
Operating income, as reported $ 6,854 $ 7,354 $ 2,695 $ 5,792 $ 5,561 $ 5,887 $ 6,240 $ 5,318 $ 7,316 $ 6,854
1
Business reorganization and restructuring charges — — — — 849 108 — — — —
2
Opioid legal charges — — 3,325 — — — — — 93 —
Adjusted operating income $ 6,854 $ 7,354 $ 6,020 $ 5,792 $ 6,410 $ 5,995 $ 6,240 $ 5,318 $ 7,409 $ 6,854
3
Percent change -6.8% NP +3.9% NP +6.9% NP +17.3% NP +8.1% NP
Currency exchange rate fluctuations $ 62 — $ 38 — $ (39) — $ (72) — $ (124) $ —
Adjusted operating income, constant currency $ 6,916 $ 7,354 $ 6,058 $ 5,792 $ 6,371 $ 5,995 $ 6,168 $ 5,318 $ 7,285 $ 6,854
Percent change3 -6.0% NP +4.6% NP +6.3% NP +16.0% NP +6.3% NP

1
Business reorganization and restructuring charges in the fourth quarter of fiscal 2023 primarily relate to compensation expenses incurred in connection with the strategic decisions made in the Walmart International
segment. Business restructuring charges in the fourth quarter of fiscal 2022 primarily consist of severance and store closure related costs due to strategic decisions made in the Walmart International segment.
2
Recorded in Corporate and support.
3
Change versus prior year comparable period.
NP = not provided
 Non-GAAP measures – adjusted EPS

Adjusted diluted earnings per share attributable to Walmart (Adjusted EPS) is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain amounts
included in the diluted earnings per share attributable to Walmart calculated in accordance with GAAP (EPS), the most directly comparable financial measure calculated in
accordance with GAAP. Management believes that Adjusted EPS is a meaningful measure to share with investors because it best allows comparison of the performance with that of
the comparable period. In addition, Adjusted EPS affords investors a view of what management considers Walmart’s core earnings performance and the ability to make a more
informed assessment of such core earnings performance with that of the prior year.
We adjust for the unrealized and realized gains and losses on our equity and other investments each quarter because although the investments are strategic decisions for the
company’s retail operations, management’s measurement of each strategy is primarily focused on the operational results rather than the fair value of such investments.
Additionally, management does not forecast changes in the fair value of its equity and other investments. Accordingly, management adjusts EPS each quarter for the realized and
unrealized gains and losses related to those equity investments.
We have calculated Adjusted EPS for the trailing five quarters as well as the prior year comparable periods by adjusting EPS for the relevant adjustments for each period presented.

5 5
Percent
Three Months Ended Jul 31, 2023 Three Months Ended Jul 31, 2022 Change
Diluted earnings per share:
Reported EPS $2.92 $1.88 +55.3%
Pre-Tax Tax 1,2 NCI Pre-Tax Tax 1,3 NCI
Adjustments: Impact Impact Impact4 Net Impact Impact Impact Impact4 Net Impact
6
Unrealized and realized (gains) and losses on equity and other investments $(1.44) $0.33 $— $(1.11) $0.14 $(0.02) $(0.01) $0.11
Incremental opioid settlement expense 0.04 (0.01) — 0.03 — — — —
Gain on sale of equity method investment in Brazil — — — — (0.16) — — (0.16)
Discrete tax item — — — — — (0.06) — (0.06)
Net Adjustments $(1.08) $(0.11)
Adjusted EPS $1.84 $1.77 +4.0%
1
Tax impact calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions. No tax expense was incurred in connection with the gain on sale of equity method investment in Brazil.
2
The reported effective tax rate was 24.9% for the three months ended July 31, 2023. Adjusted for the above items, the effective tax rate was 25.8% for the three months ended July 31, 2023.
3
The reported effective tax rate was 22.5% for the three months ended July 31, 2022. Adjusted for the above items, the effective tax rate was 26.2% for the three months ended July 31, 2022.
4
Calculated based on the ownership percentages of our noncontrolling interests, where applicable.
5
Individual components in the accompanying tables may include immaterial rounding.
6
For the three months ended July 31, 2023, unrealized gains were primarily driven by increases in the underlying stock prices of our investments in Symbotic and JD.com.
Non-GAAP measures – adjusted EPS (cont.)

Percent
Three Months Ended Apr 30, 2023 Three Months Ended Apr 30, 2022 Change
Diluted earnings per share:
Reported EPS $0.62 $0.74 -16.2%
Pre-Tax Tax 1 NCI Pre-Tax Tax 1 NCI
Adjustments: Impact Impact Impact3 Net Impact Impact Impact Impact3 Net Impact
Unrealized and realized (gains) and losses on equity and other investments $1.13 $(0.27) $(0.01) $0.85 $0.71 $(0.15) $— $0.56

Adjusted EPS $1.47 $1.30 +13.1%

Percent
Three Months Ended Jan 31, 2023 Three Months Ended Jan 31, 2022 Change
Diluted earnings per share:
Reported EPS $2.32 $1.28 +81.3%
Pre-Tax Tax 1,2 NCI Pre-Tax Tax 1 NCI
Adjustments: Impact Impact Impact3 Net Impact Impact Impact Impact3 Net Impact
Unrealized and realized (gains) and losses on equity and other investments $(1.43) $0.27 $— $(1.16) $0.22 $(0.05) $0.02 $0.19
Business reorganization and restructuring charges 0.31 0.40 (0.16) 0.55 0.08 (0.02) — 0.06
Net Adjustments $(0.61) $0.25

Adjusted EPS $1.71 $1.53 +11.8%

1
Tax impact calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions.
2
Business reorganization and restructuring charges include tax amounts incurred on separation of Flipkart and PhonePe..
3
Calculated based on the ownership percentages of our noncontrolling interests, where applicable.
Non-GAAP measures – adjusted EPS (cont.)

Percent
Three Months Ended Oct 31, 2022 Three Months Ended Oct 31, 2021 Change
Diluted earnings per share:
Reported EPS $(0.66) $1.11 NM
Pre-Tax Tax 1 NCI Pre-Tax Tax 1 NCI
Adjustments: Impact Impact Impact3 Net Impact Impact Impact Impact3 Net Impact
Unrealized and realized (gains) and losses on equity and other investments $1.34 $(0.24) $0.01 $1.11 $(0.42) $0.09 $— $(0.33)
Opioid legal charges 1.22 (0.17) — 1.05 — — — —
Loss on extinguishment of debt — — — — 0.86 (0.19) — 0.67
4
Net Adjustments $2.16 $0.34

4
Adjusted EPS $1.50 $1.45 +3.4%

Percent
Three Months Ended Jul 31, 2022 Three Months Ended Jul 31, 2021 Change
Diluted earnings per share:
Reported EPS $1.88 $1.52 +23.7%
Pre-Tax Tax 1,2 NCI Pre-Tax Tax 1 NCI
Adjustments: Impact Impact Impact3 Net Impact Impact Impact Impact3 Net Impact
Unrealized and realized (gains) and losses on equity and other investments $0.14 $(0.02) $(0.01) $0.11 $0.34 $(0.08) $— $0.26
Gain on sale of equity method investment in Brazil (0.16) — — (0.16) — — — —
Discrete tax item — (0.06) — (0.06) — — — —
Net Adjustments $(0.11) $0.26

Adjusted EPS $1.77 $1.78 -0.6%

1
Tax impact calculated based on nature of item, including any realizable deductions, and statutory rate in effect for relevant jurisdictions.
2
No tax expense was incurred in connection with the gain on sale of equity method investment in Brazil.
3
Calculated based on the ownership percentages of our noncontrolling interests, where applicable.
4
Adjusted EPS for the three months ended October 31, 2022 was calculated using weighted average shares outstanding of 2,720 million, which includes the dilutive impact of share-based payment awards.
NM = not meaningful
Non-GAAP measures - Adjusted EBITDA and
Adjusted EBITDA Margin
We include net income and net income margin, which are calculated in accordance with U.S. generally accepted accounting principle as well as Adjusted EBITDA and Adjusted
EBITDA margin to provide meaningful information about our operational efficiency compared with our competitors by excluding the impact of certain items. We calculate
Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization. We also exclude other gains and losses, which is primarily comprised of fair value
adjustments on our investments which management does not believe are indicative of our core business performance. From time to time, we will also adjust certain items
from operating income, which we believe is meaningful because it best allows comparison of the performance with that of the comparable period. Adjusted EBITDA margin is
calculated by dividing Adjusted EBITDA by consolidated net sales.

Adjusted EBITDA and Adjusted EBITDA margin are considered non-GAAP financial measures. Management believes, however, that these measures provide meaningful
information about our operational efficiency by excluding the impact of differences in tax jurisdictions and structures, debt levels, capital investments and other items which
management does not believe are indicative of our core business performance. We consider net income to be the financial measure computed in accordance with GAAP that
is the most directly comparable financial measure to our calculation of Adjusted EBITDA. We consider net income margin to be the financial measure computed in
accordance with GAAP that is the most directly comparable financial measure to our calculation of Adjusted EBITDA margin. Although Adjusted EBITDA and Adjusted
EBITDA margin are standard financial measures, numerous methods exist for calculating a company’s Adjusted EBITDA and Adjusted EBITDA margin. As a result, the method
used by management to calculate our Adjusted EBITDA and Adjusted EBITDA margin may differ from the methods used by other companies to calculate similarly titled
measures.

Net income margin was 4.9% and 3.4% for the three months ended July 31, 2023 and 2022, respectively. The increase in net income margin was primarily due to the increase
in net income, which was impacted by higher unrealized net gains on our equity and other investments, when compared to the same period in the previous year. Adjusted
EBITDA margin was 6.4% and 6.3% for the three months ended July 31, 2023 and 2022, respectively. The increase in Adjusted EBITDA margin was due to higher operating
income driven primarily by an increase in net sales when compared to the same period in the previous year.
Non-GAAP measures – Adjusted EBITDA & Adjusted EBITDA margin
The calculation of net income margin and Adjusted EBITDA margin, along with a reconciliation of Adjusted EBITDA margin to the
calculation of net income margin, is as follows:

Three Months Ended

Q2 FY24 Q2 FY23
(Amounts in millions) 2023 2022
Consolidated net income attributable to Walmart 7,891 5,149

Consolidated net (income) loss attributable to noncontrolling interest (162) 2

Provision for income taxes 2,674 1,497

Other (gains) and losses (3,905) (238)

Interest, Net 494 448

Operating Income $ 7,316 $ 6,854

+ Depreciation and Amortization 2,905 2,699

+ Incremental opioid settlement expense 93 —

Adjusted EBITDA $ 10,314 $ 9,553

Net Sales $ 160,280 $ 151,381

Consolidated net income margin 4.9% 3.4%

Adjusted EBITDA margin 6.4% 6.3%