Walmart Reports Strong Q3 Growth

By Philip Seaworth • Thursday, November 20 10:25 • Permanent Link

Walmart Inc. (NYSE: WMT) has reported its third-quarter results, showing significant growth in several key areas. The company's revenue increased by 5.8%, reaching $179.5 billion, or 6.0% in constant currency. Ecommerce sales saw a remarkable 27% global growth, with specific strengths in store-fulfilled pickup & delivery and marketplace. Walmart U.S. comp sales were up 4.5%, with strong performance across categories. The company also noted a 53% growth in its global advertising business, including Vizio, and a 33% increase in Walmart Connect sales in the U.S.

In terms of financial metrics, Walmart reported operating income decreased by 0.2%, but adjusted operating income increased by 8.0% in constant currency. The company's GAAP EPS was $0.77, while the adjusted EPS stood at $0.62. Notably, the company raised its outlook for fiscal year 2026, with expectations for growth in net sales and adjusted operating income in constant currency. The adjusted EPS is anticipated to be in the range of $2.58 to $2.63, including a currency headwind of $0.01 to $0.02.

The balance sheet and liquidity also showed positive trends, with operating cash flow increasing to $27.5 billion, a $4.5 billion rise from the previous period. Free cash flow also saw an increase, reaching $8.8 billion. Walmart repurchased 75.3 million shares year-to-date, amounting to $7.0 billion. However, the company's inventory increased by $2.1 billion, representing a 3.2% rise.

Breaking down the performance of different segments, Walmart U.S. experienced a 5.1% increase in net sales, with a 24.5% comp sales growth (excluding fuel). The company's operating income grew by 6.3%, reflecting strong inventory management and improved ecommerce economics. Walmart International saw a 10.8% increase in net sales, or 11.4% in constant currency, led by Flipkart, China, and Walmex. Sam's Club U.S. reported a 3.1% growth in net sales, or 4.4% excluding fuel, with a 13.8% comp sales growth (excluding fuel).

Today the company's shares have moved -0.77% to a price of $100.61. If you want to know more, read the company's complete 8-K report here.

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