Walmart Mexico (Walmex) Profit Falls 6.1%

MEXICO · COMPANY RESULTS

Walmex earned MXN 11,027 million (about US$590 million) in the third quarter, down 6.1%. Sales grew 3.0%, but taxes and expenses grew faster.

Walmart de México y Centroamérica, known as Walmex, earned MXN 11,027 million (about US$590 million) in the third quarter. That is 6.1% less than the MXN 11,747 million (about US$629 million) of a year earlier.

Walmex, the Mexican and Central American arm of US retailer Walmart, published the results on Tuesday, 27 October. Revenue for the quarter to 30 September rose 3.0% to MXN 248,828 million (about US$13.33 billion), but expenses and taxes rose faster.

Conversions in this article use a rate of MXN 18.67 per US$1, taken from open.er-api.com on 28 October 2026. All peso figures come from Walmex’s results report to the Mexican Stock Exchange.

Walmex Profit and Sales in the Third Quarter

Earnings per share were 0.642 pesos (about US$0.03), down 5.2% from 0.678 pesos. Operating profit fell 1.8% to MXN 18,683 million (about US$1.00 billion).

EBITDA, which is operating profit before depreciation and amortisation, rose 0.4% to MXN 25,372 million (about US$1.36 billion). Its margin slipped 30 basis points, or 0.3 percentage points, to 10.2%.

Gross margin, the share of sales left after the cost of goods, held at 24.7%. General expenses rose 5.7% to MXN 43,294 million (about US$2.32 billion), or 17.4% of revenue against 17.0% a year earlier.

Walmex says the extra spending went mainly into growth investments, partly offset by productivity projects. For Mexico it named new stores, online sales, technology and staff benefits.

Higher Taxes Took Most of the Profit Drop

Income taxes rose 14.2% to MXN 5,229 million (about US$280 million), from MXN 4,581 million (about US$245 million). Profit before tax was almost unchanged, down 0.4% to MXN 16,256 million (about US$870 million).

That means the tax bill, not weaker trading, explains most of the MXN 720 million (about US$39 million) fall in net profit. Calculated from the report, taxes took about 32% of pre-tax profit, against about 28% a year earlier.

Camilo Cañedo, Walmex’s finance and administration chief, said the higher rate came mainly from one-off adjustments to last year’s tax calculations. He said the company expects the rate to normalise in the fourth quarter.

Net financial costs fell 9.9% to MXN 2,427 million (about US$130 million), which helped a little. The net profit margin was 4.4% of revenue, against 4.9%.

Mexico Stores and Online Sales

Mexico produced MXN 206,759 million (about US$11.07 billion) of revenue, up 3.1%. Same-store sales, which compare stores open in both periods, grew 1.7%.

The average ticket rose 1.6% and customer traffic held steady for the first time in nine quarters. Walmex says its same-store growth beat the supermarket and club members of ANTAD, Mexico’s retail trade association, by about 230 basis points.

Online net sales in Mexico grew 15.8%, led by delivery from stores, up 20.8%. The marketplace, where outside sellers list goods, grew 12.2% in value, and total online value of goods sold grew 14.8%.

Walmex says shoppers’ price perception improved by 260 basis points. The chain froze prices for at least 90 days on 4,000 essential products at Bodega Aurrera, its discount banner, and Walmart.

For context, see earlier coverage of Walmex’s second-quarter results and the split between Sam’s Club and Bodega Aurrera. Other Mexican retailers reporting this month include La Comer, with more in the Mexico section.

Central America Grows, Costa Rica Lags

Central America brought in MXN 42,069 million (about US$2.25 billion) of revenue. That was 2.7% more in pesos and 6.0% more at constant exchange rates, which strip out currency swings.

Same-store sales there rose 4.8%, or 8.7% without Costa Rica. Management says deflation in Costa Rica is still hurting food and drink sales, though traffic and market share there are improving.

Across the group, currency effects trimmed reported revenue growth to 3.0% from 3.6% at constant rates. Walmex opened 42 stores in the quarter, 39 in Mexico and three in Central America, and ended September with 4,346.

Nine Months and the 2026 Outlook

For the first nine months, net profit was MXN 34,679 million (about US$1.86 billion), down 1.7%. Revenue reached MXN 744,795 million (about US$39.89 billion), up 2.2%, and EBITDA rose 0.2% to a margin of 9.9%.

Walmex reaffirmed its 2026 guidance of consolidated sales growth of 3.5% to 4.5% at constant rates. It expects the EBITDA margin to end slightly below last year’s level.

In Mexico alone, general expenses rose 6.4% to MXN 35,533 million (about US$1.90 billion), faster than revenue. Mexican EBITDA was flat at MXN 21,491 million (about US$1.15 billion), with its margin down 30 basis points to 10.4%.

What It Means for US Readers

Walmex is the Mexican arm of a US retail giant, so its quarter is a read on the Mexican consumer. Its shares trade in Mexico City as WALMEX, with a sponsored US depositary receipt program under WMMVY.

Management says it launched Sparky, Walmart’s AI shopping assistant, in Mexico using technology already built in the United States. Sam’s Club in Mexico is also adding about 500 items sourced from the United States and China.

Walmex reports in pesos, so a stronger or weaker peso changes the dollar value of the same profit. The report does not state how much of its sales are goods imported from the United States.

What Is Not Known

The report gives no figure for the fourth-quarter tax rate, so how much profit will recover is not known. Investors’ reaction to the results is also not known.

It is not known whether fourth-quarter sales will speed up enough to reach the 3.5% to 4.5% guidance. The figures are unaudited and may be revised in the annual accounts.

What Comes Next

Walmex holds a live question-and-answer call with analysts on Wednesday, 28 October, at 6:30 a.m. Mexico City time. It lists its fourth-quarter 2026 results for Wednesday, 17 February 2027.

The quarter was still solidly profitable, not a loss. It does show a retailer spending heavily to win customers while its profit slips.

Frequently Asked Questions

What did Walmex earn in the third quarter of 2026?

Walmex earned MXN 11,027 million (about US$590 million), down 6.1% from a year earlier. Revenue rose 3.0% to MXN 248,828 million (about US$13.33 billion).

What is Walmex?

Walmex is Walmart de México y Centroamérica, the Mexican and Central American arm of Walmart. It runs 4,346 stores, including Bodega Aurrera, Walmart and Sam’s Club.

Why did Walmex profit fall?

Income taxes rose 14.2% and general expenses rose 5.7%, while sales grew 3.0%. Management says the tax rise came from one-off adjustments and should normalise in the fourth quarter.

Did Walmex change its 2026 outlook?

No, it reaffirmed sales growth of 3.5% to 4.5% at constant exchange rates. It expects the EBITDA margin to end slightly below last year’s.

When does Walmex report next?

It holds an analyst call on Wednesday, 28 October. Fourth-quarter results are listed for Wednesday, 17 February 2027.

Sources: Walmart de México y Centroamérica, Reporte de Resultados 3T26 (company results report, 27 October 2026); Walmex, Webcast script 3T26 (27 October 2026); Walmex investor relations; open.er-api.com exchange rates, 28 October 2026 (all accessed 28 October 2026).