Is WMT (Walmart Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, WMT is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (8.06% vs ≤33% threshold), interest income ratio (0.05% vs ≤5% threshold), and cash & securities ratio (1.07% vs ≤33% threshold).

Walmart Inc. stands as the world's largest retailer, operating a massive network of supercenters, hypermarkets, and warehouse clubs under banners like Walmart U.S., Walmart International, and Sam's Club. Beyond physical stores, the company has heavily invested in eCommerce through platforms like Flipkart and PhonePe, selling everything from daily groceries and consumables to electronics and apparel. Its dominance in the Consumer Defensive sector makes it a staple in many investment portfolios due to its resilience during economic downturns. For Muslim investors, Walmart is currently classified as Halal, having passed all four AAOIFI screening criteria. This means the company's core business of general retail is permissible, and its financial health aligns with Shariah standards. While Walmart does sell haram products like alcohol and pork, these are considered a small fraction of its total revenue, falling within the generally accepted 5% tolerance limit for impure income, though investors should remain aware of this mix. Financially, Walmart showcases a very clean balance sheet from an Islamic perspective. Its interest-bearing debt is low relative to its market capitalization at 8.1%, well below the 33% limit, and it generates almost no income from impermissible interest (0.05%). This suggests the company relies on operational cash flow rather than heavy leverage or interest-based investments to fuel its growth. Investors should monitor the company's expansion into financial services, particularly through ventures like PhonePe or potential future banking products. While currently compliant, a significant shift toward interest-based lending or financial products could alter its compliance status in the future, requiring regular re-screening. Walmart Inc. operates in the Consumer Defensive sector under the Specialty Retail industry and is headquartered in Bentonville, AR, US. The company is led by CEO John R. Furner and employs approximately 2,100,000 people.

WMT was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. WMT passed 4 of these 4 screens.

Although WMT passes all shariah screens, it does earn $368.0M in interest income (0.05% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $0.05 to purify the income.

WMT was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.