Walmart Inc (NYSE:WMT, XETRA:WMT) shares traded nearly 4% higher premarket on Thursday after the retailer reported stronger-than-expected fiscal third quarter results and lifted its full-year outlook.
The company posted revenue of $179.5 billion, up 5.8% year-over-year and ahead of analyst expectations of roughly $177.5 billion.
Adjusted earnings per share (EPS) came in at $0.62, topping Wall Street’s consensus of about $0.60.
E-commerce remained a standout, growing 27% globally during the quarter, with every business segment delivering growth above 20%. Walmart attributed the gains to store-fulfilled pickup and delivery, as well as marketplace expansion.
Advertising revenue also continued to scale, with the global ads business rising 53%, including contributions from VIZIO.
Walmart US comparable sales rose 4.5%, reflecting broad-based strength across categories.
Membership and other income climbed 9%, including 16.7% growth in membership fees.
CEO Doug McMillon praised execution across the company and said Walmart is well-positioned heading into the holiday quarter. “We’re gaining market share, improving delivery speed, and managing inventory well,” McMillon said.
Walmart also raised its full-year fiscal 2026 outlook, citing sustained momentum in sales, digital growth, and disciplined inventory management.
The company now expects net sales growth of 4.8% to 5.1% in constant currency, adjusted operating income growth of 4.8% to 5.5%, and adjusted EPS of $2.58 to $2.63, including a $0.01 to $0.02 currency headwind.
At the midpoint, Walmart’s adjusted EPS outlook increases to $2.61, up 1.4% from its prior guidance and slightly ahead of Wall Street expectations of about $2.58 to $2.60.
Jefferies analysts described Walmart’s Q3 results as a strong performance. They highlighted that the e-commerce growth of 27%, along with advertising and membership, accounted for about a third of the company’s operating income.
While the raised guidance shows Walmart’s confidence heading into the fourth quarter, Jefferies believes that the high end of the outlook does not fully reflect the strength of the Q3 beat.
While shares were initially down pre-market at the time of writing, Jefferies concluded that fundamentals remain solid, recommending a “buy on weakness as Walmart’s omni-channel strategy and margin expansion continue to outperform peers.”