Walmart reported a strong third quarter with robust revenue growth driven by eCommerce and solid comparable sales. The company raised its full-year outlook for net sales and adjusted operating income, signaling confidence in continued performance.
Total revenues increased 5.8% to $179.5 billion, or 6.0% in constant currency.
positiveGlobal eCommerce sales grew 27%, with growth exceeding 20% in each business segment.
positiveWalmart U.S. comparable sales increased 4.5%, with strength across categories.
positiveCompany raises outlook for FY26 net sales to 4.8%-5.1% (cc) and adjusted operating income to 4.8%-5.5% (cc).
positiveGlobal advertising business grew 53%, with Walmart Connect in the U.S. up 33%.
positiveMembership and other income up 9.0%, with membership income growing 16.7%.
positiveGross margin rate up 2 bps, led by Walmart U.S.
positiveOperating cash flow increased by $4.5 billion to $27.5 billion.
positiveFree cash flow increased by $2.6 billion to $8.8 billion.
positiveOperating income decreased 0.2% due to a non-cash share-based compensation charge at PhonePe.
attentionWalmart International operating income decreased 41.7% due to the PhonePe charge.
negativeInventory increased 3.2% to $65.4 billion, though this is slower than sales growth.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Walmart U.S. | $120700000.0B | $114900000.0B | +5.1% | 67.9% | — |
Walmart International | $33500000.0B | $30300000.0B | +10.8% | 18.8% | +11.4% |
Sam's Club U.S. | $23600000.0B | $22900000.0B | +3.1% | 13.3% | — |
| Total Revenue | $177800000.0B | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
The team delivered another strong quarter across the business.
eCommerce was a bright spot again this quarter, with gains in market share, improved delivery speed, and effective inventory management.
Well-positioned for a strong finish to the year and beyond.
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Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.