<\/p>\n
In his autobiography, Sam Walton: Made In America, Walmart (WMT) founder Sam Walton said that \u201cthe more you share profits with your associates \u2014 whether it\u2019s in salaries or incentives or bonuses or stock discounts \u2014 the more profit will accrue to the company.\u201d<\/p>\n
Decades later, Walmart is still sharing its profits \u2014 but today\u2019s debate centers on who benefits most.<\/p>\n
After Walmart approved the largest share repurchase authorization in its history, it rekindled a long-running feud with one of its fiercest critics, Senator Bernie Sanders (I-VT).<\/p>\n
Here\u2019s what investors need to know about Walmart\u2019s newest stock buyback program, its history of repurchasing its shares, and what buybacks mean for Walmart shareholders and employees. <\/p>\n
ContentsWhat is Walmart\u2019s latest stock buyback plan?Walmart\u2019s stock buyback historyWho benefits most from stock buybacks?<\/p>\n
What is Walmart\u2019s latest stock buyback plan?<\/p>\n
In February 2026, Walmart announced a new $30 billion share repurchase authorization \u2014 the largest in its 55-year history as a publicly traded company.<\/p>\n
This followed a fiscal year in which Walmart returned $15.6 billion to shareholders through dividends and stock buybacks.<\/p>\n
The announcement quickly drew criticism from Sanders, who argued on X that Walmart could have paid each employee a $23,550 bonus instead.<\/p>\n
Since 2020, Walmart spent $37.6 billion in stock buybacks\u2014enough to give all their workers a $23,550 bonus.<\/p>\n
Instead, Walmart pays wages so low that many of their workers need Medicaid & SNAP paid for by taxpayers.<\/p>\n
The real welfare queen is the Walton family worth $485 billion.<\/p>\n
\u2014 Bernie Sanders (@BernieSanders) July 23, 2026<\/p>\n
Sanders has been a vocal opponent of corporate stock buybacks, calling them forms of \u201ccorporate self-indulgence\u201d that \u201cenrich the wealthy few.\u201d<\/p>\n
In 2019, Sanders, along with Senator Chuck Schumer (D-NY), introduced legislation aimed at prohibiting a corporation from share repurchases \u201cunless it invests in its workers and communities first,\u201d by raising entry-level wages to $15 per hour, and offering sick leave and pensions. The bill was actually called the \u201cStop WALMART Act,\u201d an acronym for the \u201cStop Welfare for Any Large Monopoly Amassing Revenue from Taxpayers Act.\u201d<\/p>\n
Ultimately, however, the bill stalled in Congress.<\/p>\n
On June 5, 2019, Walmart\u2019s shareholders voted down a Sanders-backed proposal to put company employees on its board of directors.<\/p>\n
Walmart has defended its approach, calling itself a \u201cpeople-led, tech-powered\u201d company. A spokesperson invited Sanders to \u201clearn about the many ways we\u2019re working to provide increased economic opportunity, mobility and benefits to our associates \u2014 as well as our widely recognized leadership on environmental sustainability.\u201d<\/p>\n
Walmart\u2019s stock buyback history<\/p>\n
As part of its capital return strategy, Walmart has repurchased shares for decades through continuous authorizations and annual share retirements.<\/p>\n
But as economic conditions have changed, Walmart\u2019s annual repurchase activity has fluctuated.<\/p>\n
Here\u2019s how it has evolved over the past six fiscal years, according to SEC filings:<\/p>\n
FY2021: $2.62 billion. Facing uncertainty during the COVID-19 pandemic, Walmart prioritized preserving cash to fund pandemic wages, enhance store sanitation, and invest in its supply chain.<\/p>\n
FY2022: $9.79 billion. The company generated exceptionally strong profits during this period, due to a fourfold increase in pickup and delivery services. Total revenue reached $572.7 billion; management deployed its excess capital into the market.<\/p>\n
FY2023: $9.92 billion. Despite supply chain issues, Walmart\u2019s revenue exceeded $611 billion, and it generated strong cash flow. This allowed its heightened repurchases to continue.<\/p>\n
FY2024: $2.78 billion. Inflationary pressures and a more cautious approach to spending contributed to Walmart\u2019s slowest rate of repurchases since 2021.<\/p>\n
FY2025: $4.49 billion. As Walmart became more profitable and e-commerce grew, the company\u2019s buybacks accelerated.<\/p>\n
FY2026: $8.09 billion. Thanks to investments in artificial intelligence, Walmart\u2019s operating performance strengthened, and management authorized a record new $30 billion repurchase program while retiring 85 million shares.<\/p>\n
Who benefits most from stock buybacks?<\/p>\n
In one sense, Sanders has a point: Share repurchases benefit shareholders and executives more than company employees.<\/p>\n
Executives benefit from stock buybacks because their compensation packages are often tied to stock performance. And so long as a company\u2019s earnings grow, its earnings per share (EPS) will rise as the number of shares outstanding decrease.<\/p>\n
More on stock buybacks:<\/p>\n
Similar to dividend payouts, shareholders benefit from share repurchases \u2014 in fact, they are often the more tax-efficient shareholder reward.<\/p>\n
But unless an employee participates in a stock-purchase plan, they do not benefit directly from share repurchases.<\/p>\n
However, many economists disagree with Sanders\u2019 underlying premise. They argue that returning excess cash to shareholders doesn\u2019t necessarily come at the expense of wages, since compensation and capital investments are typically determined through separate budgeting processes.<\/p>\n
Therefore, the best use of a company\u2019s excess capital depends on where management believes it will generate the greatest long-term value.<\/p>\n
That echoes Sam Walton\u2019s belief that sharing profits wisely helps create even more profits over time.<\/p>\n
About the authors<\/p>\n
As a journalist for TheStreet, Laura Rodini enjoys making business, economic, and financial-related topics inclusive and accessible to everyone. She also teaches at Johns Hopkins University and has written more than 100 destination, luxury hotel, and neighborhood guides for Fodor\u2019s Travel, ApartmentAdvisor, and Northstar Travel Media. Rodini received her Master’s Degree from the University of New Hampshire.<\/p>\n
Jeremy is a writer and editor who focuses on longer-form, informational articles that explore the fields of consumer finance, employment, economics, cars, and culture.<\/p>\n
#Walmarts #stock #buybacks #History #investor #impact #explained<\/p>\n","protected":false},"excerpt":{"rendered":"
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