Walmart’s (WMT) latest quarter shows strength despite a challenging consumer backdrop.
Walmart delivered stronger-than-expected third-quarter results, offering insights for investors focused on analyzing stocks and investment news.
Key Points
- Q3 revenue rose 6% to $179.5 billion, with earnings of $0.62 per share.
- Walmart raised full-year guidance for both sales and earnings.
- CEO Doug McMillon prepares to step down, with John Furner succeeding him.
Walmart’s Q3: What Fueled the Earnings Beat?
Walmart reported adjusted earnings of $0.62 per share, topping expectations of $0.60. Revenue reached $179.5 billion, supported by a 4.5% rise in U.S. same-store sales. Customer traffic increased 1.8%, and average spending grew 2.7%.
eCommerce was a standout, growing 27% globally as shoppers increasingly turn to digital channels. The company continues capturing share from value-seeking consumers across income groups.
Why Are Customers Spending More at Walmart?
Food prices remain elevated compared with pre-pandemic levels, but Walmart kept inflation to about 1% through selective price rollbacks and cost management. Grocery represents roughly 60% of U.S. sales and saw modest unit growth.
The $128 Vizio 50-inch TV highlighted how Walmart uses sharp pricing to drive traffic. Owning Vizio’s operating system gives Walmart additional long-term advertising revenue opportunities.
How Will Leadership and Strategy Shifts Impact Investors?
Walmart will transition its CEO role from Doug McMillon to John Furner next year. Executives expect a smooth handoff. Furner has played a major role in Walmart's digital transformation.
The move to list shares on Nasdaq supports Walmart’s tech-forward identity and aligns it with innovation-focused peers. The company is also expanding its use of AI, including personalized shopping tools and automation initiatives.
What It Means for Investors
Walmart’s raised guidance reflects confidence heading into the holiday season. The company now expects full-year sales to rise 4.8% to 5.1% and earnings to reach between $2.58 and $2.63 per share.
Strong eCommerce growth, expanding advertising revenue, and steady performance across income cohorts support Walmart's position as one of the best company investments in a mixed economy.
For investors evaluating the best stocks to buy, Walmart’s consistency and tech-driven strategy reinforce its long-term appeal.
Conclusion
Walmart’s third-quarter results highlight strong momentum driven by value, convenience, and digital transformation. With elevated guidance and continued share gains, Walmart enters the next fiscal year well-positioned for growth.
FAQs
How did Walmart perform in the most recent quarter?
Walmart reported earnings of $0.62 per share and $179.5 billion in revenue, beating forecasts.
Why did Walmart raise its full-year guidance?
The company saw stronger performance in eCommerce, grocery, and higher-income customer spending.
How is Walmart addressing inflation and high food prices?
Walmart is using price rollbacks and cost management to keep food inflation near 1%.
What impact will the CEO transition have?
John Furner is expected to continue the company’s digital and operational strategy with minimal disruption.
Why is Walmart moving its stock listing to Nasdaq?
The move aligns Walmart with a tech-centric exchange as it expands AI and digital retail capabilities.
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