Walmart Mexico Profit Falls 6% as Rising Costs Squeeze Margins

October 27, 2026 — Walmart’s Mexican subsidiary reported lower-than-expected third-quarter profit as rising operating expenses and growth investments put pressure on margins, offsetting strong expansion in its e-commerce business.

Walmart de México y Centroamérica (WALMEX.MX), the country’s largest retailer, posted net profit of 11.03 billion pesos ($610 million), down 6% from a year earlier. The result fell short of the 12.26 billion pesos forecast by analysts surveyed by LSEG.

Revenue also missed expectations, increasing 3% to 248.83 billion pesos for the July-September period, compared with analysts’ estimate of 250.44 billion pesos.

Rising Expenses Weigh on Profitability

Walmart Mexico’s earnings before interest, taxes, depreciation and amortization (EBITDA) rose just 0.4% to 25.37 billion pesos. Its EBITDA margin narrowed by 30 basis points to 10.2%, reflecting the growing pressure of operating costs.

General expenses increased nearly 6% compared with the same quarter last year. Sales expenses climbed by more than 6%, as the retailer continued investing in business growth.

The increase in expenses outpaced the company’s revenue growth, limiting its ability to convert higher sales into stronger earnings.

Store Sales Show Modest Growth

Same-store sales in Mexico rose almost 2% during the quarter. Average ticket growth reached 1.6%, while customer traffic remained broadly flat.

The results indicate that sales growth at established stores remained modest, adding to the challenge of maintaining profitability as expenses continued to rise.

E-Commerce Remains a Bright Spot

Walmart’s online business delivered stronger growth than its overall revenue performance.

Online gross merchandise value (GMV) increased 15% in Mexico and 23% in Central America, highlighting continued momentum in digital commerce across the region.

However, that growth was not enough to offset the effects of higher expenses and investment spending on the company’s quarterly profit and margins.

At the end of September, the exchange rate stood at $1 to 18.0808 pesos.