Walmart Inc. (NYSE:WMT) just rolled out a powerhouse quarter, beating Wall Street profit expectations premarket on Thursday.
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Walmart stock initially dropped as much as 2.5% following the earnings release but rebounded after management’s commentary on the conference call. The stock is up about 3% at the time of publication.
The retail giant is leaning hard into e-commerce, digital ads, and growth from India’s Flipkart and China.
The company reported third-quarter adjusted earnings per share of 62 cents, beating the Street view of 60 cents.
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Quarterly sales of $179.50 billion (+5.8% year over year) outpaced the analyst consensus estimate of $177.429 billion.
Segment Performance
Walmart U.S. revenue rose 5.1% year-over-year to $120.7 billion, driven by strong eCommerce momentum and market share gains across grocery, health and wellness, and general merchandise.
Walmart International sales increased 10.8% to $33.5 billion, with growth led by Flipkart, China, and Walmex. Transaction counts and unit volumes improved across key markets.
Sam’s Club U.S. revenue grew 3.1% to $23.6 billion, supported by strength in grocery and general merchandise and continued share gains.
Quarterly Metrics
Walmart posted a 4.5% increase in U.S. comparable sales, excluding fuel, for the third quarter. Sam’s Club reported U.S. comparable sales growth of 3.8%, excluding fuel, over the same period.
Global e-commerce sales climbed 27%, driven by strong growth in store-fulfilled pickup and delivery services as well as its marketplace business.
The company’s global advertising operations, including VIZIO, surged 53%, while Walmart Connect in the U.S. posted a 33% increase.
Membership and other income increased 9%, supported by a 17% jump in global membership fee revenue.
Quarterly gross margin rate improved by two basis points, led primarily by Walmart U.S. International results, partially offset by gains due to the timing of Flipkart’s Big Billion Days event.
Operating income slipped 0.2%, mainly reflecting a non-cash share-based compensation charge at PhonePe ahead of a potential IPO. On an adjusted basis, operating income rose 8.0%, highlighting underlying strength in the business.
Walmart exited the third quarter with cash and equivalents worth $10.582 billion.
The company’s long-term debt due within one year was $3.523 billion, higher than $3.246 billion in the year-ago period.
Walmart Shifts To Nasdaq
Walmart said it will move its stock listing from the New York Stock Exchange to the Nasdaq Global Select Market on Dec. 9, 2025, while keeping the ticker “WMT.”
The company said the switch reflects its alignment with Nasdaq’s technology-driven, innovation-focused platform.
Walmart will also transfer the listing of nine outstanding bonds to Nasdaq as part of the move.
CFO John David Rainey said the change supports Walmart’s people-led, tech-powered omnichannel strategy and marks a new phase of growth.
Earnings Conference Call
On the earnings call, Walmart said inflation is now running in the low-1% range, noting that the team has done “a nice job” managing inventory levels and product mix.
Executives added that the company has seen less tariff impact than initially expected earlier in the year.
They also highlighted some relief across key food categories, with the only meaningful pricing pressure coming from beef, which they attributed to the cyclical nature of the commodity.
According to Reuters, Walmart’s CEO said that upper- and middle-income households are driving U.S. growth, adding that the retailer continues to benefit from higher-income families shopping more frequently at Walmart.
Outlook
Walmart raised its 2026 adjusted EPS outlook to $2.58–$2.63, up from its earlier range of $2.52–$2.62. The updated midpoint comes in above the $2.61 analyst consensus.
Walmart lifted its fiscal 2026 constant-currency revenue growth outlook to 4.8%–5.1%, up from its prior range of 3.75%–4.75%.
The retailer also raised its adjusted operating income growth outlook to 4.8%–5.5%, compared with an unchanged range earlier in the year.
Price Action: WMT shares were trading higher by 3.14% to $103.77 premarket at last check Thursday.
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