Shares of Walmart Inc (NYSE: WMT) rose sharply on November 20, 2025, after the company released its third-quarter results for fiscal year 2026 (Q3 FY26). The stock climbed 5.57 percent to reach 106.21 US dollars by 10:21 a.m. Eastern Time, gaining 5.60 US dollars from the previous close. The jump was fueled by a strong set of earnings, robust revenue growth, and a revised full-year guidance that signals continued strength in both physical and digital operations. Walmart Inc’s performance showed particular momentum in eCommerce, advertising, and core retail categories, reinforcing investor confidence during a volatile consumer spending environment.
Revenue for the quarter totaled 179.5 billion US dollars, representing a year-over-year increase of 5.8 percent, or 6.0 percent on a constant currency basis. The digital business continued to outperform, with global eCommerce sales rising 27 percent across all segments. Advertising also delivered meaningful upside, with global ad revenue increasing 53 percent, including a 33 percent jump in Walmart Connect revenue in the United States. These digital-led growth engines contributed to margin expansion and elevated investor sentiment.
Adjusted earnings per share for the quarter came in at 0.62 US dollars, compared to 0.58 US dollars in the prior year. This increase of 6.9 percent reflects underlying business improvements despite one-off items, including incremental share-based compensation related to the anticipated PhonePe initial public offering.
What fueled Walmart Inc’s strong Q3 FY26 growth across U.S., international, and Sam’s Club segments?
Walmart Inc’s core U.S. business posted solid growth in the third quarter, with net sales of 120.7 billion US dollars, up 5.1 percent year-over-year. Comparable sales excluding fuel rose 4.5 percent, supported by transaction growth of 1.8 percent and an average ticket increase of 2.7 percent. Store-fulfilled delivery channels expanded at nearly 70 percent, with eCommerce contributing approximately 440 basis points to comparable sales. Performance was led by grocery, health and wellness, and general merchandise categories.
Operating income in the U.S. segment increased by 6.3 percent to 5.8 billion US dollars. Walmart Inc noted that inventory levels rose just 2.6 percent, roughly half the rate of sales growth, demonstrating disciplined inventory management. Gross margin in the U.S. improved by 19 basis points year-over-year. Advertising revenue continued to expand, and membership income posted double-digit growth. Management cited improved economics in the digital mix, strong unit economics in fulfillment, and operational efficiency as key levers driving operating income expansion.
Walmart International reported net sales of 33.5 billion US dollars, marking a 10.8 percent increase, or 11.4 percent in constant currency. The segment benefited from higher transactions and unit volumes in markets such as Flipkart in India, China, and Walmex in Mexico. eCommerce growth of 26 percent was led by both marketplaces and store-fulfilled pickup and delivery. Flipkart’s Big Billion Days event, which occurred earlier than usual this year, helped boost Q3 results but is expected to create a pull-forward effect that will soften Q4 growth.
Despite a reported operating income decline of 41.7 percent to 702 million US dollars in the international segment, adjusted operating income in constant currency rose by 16.9 percent to 1.4 billion US dollars. The gap was primarily due to a 722 million US dollar non-cash charge tied to PhonePe’s pre-IPO equity compensation adjustments.
Sam’s Club U.S. delivered net sales of 23.6 billion US dollars, up 3.1 percent compared to the same period last year. Excluding fuel, comparable sales increased 3.8 percent, driven by a 3.9 percent rise in transactions. The average ticket remained flat at minus 0.1 percent. eCommerce sales for Sam’s Club grew by 22 percent, reflecting strong performance in club-fulfilled pickup and delivery. Membership income rose by 7.1 percent, underpinned by continued growth in membership count, high renewal rates, and expansion of Plus members. Operating income for Sam’s Club improved 5.8 percent to 671 million US dollars.
Why did Walmart Inc revise its FY26 guidance upward following Q3 earnings strength?
Following its strong third-quarter performance, Walmart Inc revised its full-year fiscal 2026 guidance upward. The company now expects net sales growth of 4.8 percent to 5.1 percent in constant currency, compared to its earlier projection of 3.75 percent to 4.75 percent. Adjusted operating income is also projected to grow by 4.8 percent to 5.5 percent, which is higher than the previous range of 3.5 percent to 5.5 percent. These increases reflect confidence in core demand trends and digital monetization capabilities.
Walmart Inc now expects full-year adjusted earnings per share to range from 2.58 to 2.63 US dollars, slightly higher than the prior forecast of 2.52 to 2.62 US dollars. This revised outlook includes a minor foreign currency headwind of 0.01 to 0.02 US dollars. The company maintained its capital expenditure guidance at approximately 3.5 percent of net sales, indicating continued investment in automation, fulfillment, and technology transformation initiatives.
In his remarks, outgoing Chief Executive Officer Doug McMillon expressed confidence in the company’s long-term strategy and praised incoming Chief Executive Officer John Furner, who currently leads the U.S. operations. McMillon cited the strength of the Walmart Inc associate base and the company’s focus on price, convenience, and inventory as major contributors to Q3 success. The leadership transition is not expected to result in material changes to Walmart Inc’s operating priorities.
How do Walmart Inc’s free cash flow, debt levels, and return metrics reflect operational health?
Walmart Inc entered the fourth quarter with strong balance sheet and liquidity metrics. The company ended Q3 with 10.6 billion US dollars in cash and cash equivalents. Total debt stood at 53.1 billion US dollars. Operating cash flow year-to-date rose to 27.5 billion US dollars, up by 4.5 billion US dollars compared to the same period in the previous year. This was driven by higher operating income, favorable timing of payments, and lower cash taxes.
Free cash flow reached 8.8 billion US dollars, a 2.6 billion US dollar increase from the prior year. Capital expenditures totaled 18.6 billion US dollars for the first nine months of the fiscal year, consistent with Walmart Inc’s ongoing investment strategy. The company repurchased 75.3 million shares year-to-date at a value of 7.0 billion US dollars, with 5.1 billion US dollars remaining under its 20 billion US dollar authorization plan.
Return on assets for the trailing twelve months rose to 8.4 percent from 7.8 percent a year ago. Return on investment fell modestly to 14.8 percent from 15.1 percent due to higher capital intensity and the one-time compensation charge at PhonePe.
How are institutional investors reacting to Walmart Inc’s raised guidance and digital growth?
The intraday stock rally of over 5 percent reflected renewed institutional interest in Walmart Inc as it pivots more aggressively toward high-margin growth areas such as digital advertising, eCommerce, and subscription models. Over the last five days, the stock has gained more than 6 percent, outperforming several retail indices and peer group averages.
The full-year guidance revision, particularly the 10-basis point increase in expected net sales growth, is expected to prompt upward earnings revisions by sell-side analysts. The adjusted earnings per share forecast and consistent execution across all geographies point to strong holiday season positioning. With inventory levels well managed and price leadership intact, Walmart Inc is entering the final quarter with momentum on both revenue and margin fronts.
Investors are likely to watch closely for any updates on the PhonePe IPO timeline, Flipkart Q4 performance normalization, and potential capital allocation decisions in 2026. Analysts also noted that Walmart Inc’s free cash flow performance and repurchase activity position it favorably against competitors, particularly in a high-rate environment where cash flow visibility is being reprioritized.
What will drive Walmart Inc’s performance in Q4 FY26 and the 2026 holiday retail season?
As the holiday season accelerates, Walmart Inc’s performance in categories such as electronics, toys, apparel, and home will be key to sustaining topline momentum. eCommerce growth, particularly from Walmart Marketplace and store-fulfilled delivery, is likely to continue leading segment performance. Advertising revenue, which has already seen 53 percent growth in Q3, will also be a margin-accretive tailwind if the trend sustains through Q4.
On the risk side, investors may focus on potential moderation in discretionary categories, currency volatility in international markets, and any further updates related to macroeconomic or interest rate impacts on household spending. Nevertheless, with a stable cost structure, positive comps, and improved digital monetization, Walmart Inc appears well-positioned to close the fiscal year above expectations.
How did Walmart Inc perform on key financial metrics across revenue, margins, and share buybacks?
Walmart Inc’s reported revenue for the third quarter was 179.5 billion US dollars, up 5.8 percent from the prior year. Adjusted operating income grew 8.0 percent in constant currency to 7.2 billion US dollars. Adjusted earnings per share rose 6.9 percent to 0.62 US dollars. Free cash flow improved to 8.8 billion US dollars, and the company repurchased shares worth 7.0 billion US dollars. FY26 net sales and EPS guidance were revised upward, with adjusted EPS now forecast between 2.58 and 2.63 US dollars. Institutional sentiment turned sharply positive, with the stock rising more than 5 percent intraday as investors reacted to strong earnings and outlook clarity.
What are the key takeaways from Walmart Inc’s Q3 FY26 results and revised full-year outlook?
- Walmart Inc reported third-quarter revenue of 179.5 billion US dollars, up 5.8 percent year-over-year, or 6.0 percent in constant currency.
- Adjusted EPS rose to 0.62 US dollars, up from 0.58 US dollars last year, despite share-based expenses tied to PhonePe’s anticipated IPO.
- Global eCommerce sales jumped 27 percent, while advertising revenue surged 53 percent, including 33 percent growth in Walmart Connect in the United States.
- U.S. comparable sales (ex-fuel) increased 4.5 percent, driven by strong grocery, general merchandise, and health and wellness categories.
- Operating income in the U.S. grew 6.3 percent, outpacing sales growth due to improved eCommerce economics and better inventory management.
- Walmart International saw net sales grow 11.4 percent (constant currency), led by Flipkart, China, and Walmex, though GAAP income was impacted by a 722 million US dollar non-cash charge at PhonePe.
- Sam’s Club U.S. posted 3.8 percent comp sales growth (ex-fuel) and 22 percent eCommerce growth, with 7.1 percent growth in membership income.
- Free cash flow rose to 8.8 billion US dollars, up from 6.2 billion US dollars, while year-to-date share repurchases totaled 7.0 billion US dollars.
- Walmart Inc raised FY26 net sales guidance to 4.8 to 5.1 percent growth and adjusted EPS guidance to 2.58 to 2.63 US dollars.
- The stock rallied over 5 percent intraday, reflecting positive institutional sentiment and confidence in Walmart Inc’s digital and omnichannel strategy.
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