Quarterly Earnings Overview
WALMART INC (NYSE:WMT) has reported its financial results for the third quarter of fiscal year 2026, delivering a performance that largely met or exceeded Wall Street's expectations. The retail giant posted revenue of $179.5 billion, representing a 5.8% increase compared to the same period last year. On the bottom line, the company announced a non-GAAP earnings per share (EPS) of $0.62.
Performance Versus Estimates
The company's results were closely aligned with analyst forecasts, showing a slight outperformance in key areas.
- Revenue: Reported $179.5 billion, narrowly beating the analyst estimate of approximately $179.2 billion.
- Earnings Per Share (EPS): Reported non-GAAP EPS of $0.62, coming in just above the consensus estimate of $0.6068.
This quarter marks another period of consistent execution for the retailer, demonstrating its ability to navigate the current economic environment and meet the high expectations set by the market. The top-line growth, while modest in its beat, confirms sustained consumer demand across its vast retail operations.
Market Reaction
The immediate market response to the earnings report has been cautiously positive. In pre-market trading, the stock has shown a modest uptick. This muted reaction suggests that while the company delivered on its promises, the results were largely anticipated by investors and did not contain significant positive surprises to fuel a more substantial rally. The stock's performance over recent weeks has been negative, indicating that some pressure was on the company to deliver a clean beat to reverse the trend.
Key Highlights from the Quarter
Beyond the headline revenue and EPS figures, Walmart's earnings release highlighted several areas of robust growth that underscore its strategic initiatives. The company is successfully transitioning beyond its traditional brick-and-mortar roots, with its digital and high-margin businesses showing exceptional momentum.
- Global eCommerce sales surged by 27%, driven primarily by store-fulfilled pickup and delivery services and its online marketplace.
- The global advertising business grew by an impressive 53%, a figure that includes the contribution from VIZIO. Its U.S. arm, Walmart Connect, grew 33%.
- Membership income saw strong growth of 16.7%, indicating healthy engagement in its membership programs.
- On an adjusted basis, which excludes certain one-time items, operating income increased by 8.0% in constant currency.
It is important to note that reported operating income decreased by 0.2%, primarily due to a non-cash share-based compensation charge related to a potential initial public offering for its PhonePe unit. This one-time accounting charge masked stronger underlying operational profitability.
Looking Ahead
The company did not provide a formal financial outlook in its press release. As such, investor attention will now turn to the upcoming quarterly report and how the company's performance stacks up against existing analyst projections for the full fiscal year 2026. Analysts are currently estimating sales of approximately $716.7 billion and revenue of $2.64 billion for the year. For the critical fourth quarter, which includes the holiday season, the market is anticipating sales of around $191.3 billion.
For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data available on the WMT earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
