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Walmart (WMT) delivered a beat-and-raise Q3 (Oct) report this morning, as its everyday-low-price offering continues to resonate across all income cohorts. EPS topped expectations, a nice bounce back after its rare miss in Q2, while revenue increased 5.8% yr/yr to $179.5 bln. The company also raised FY26 guidance again, now expecting EPS of $2.58-2.63 (from $2.52-2.62 prior) with sales up 4.8-5.1% in constant currency (from 3.75-4.75% prior).

• Walmart U.S. continues to perform well with comp sales (ex fuel) up 4.5%, holding steady vs prior quarters (+4.6% in Q2, +4.5% in Q1, +4.6% in Q4). Management noted comps were solid in each month of the quarter, with transactions up 1.8% and average ticket up 2.7%. eCommerce growth of 28% contributed about 440 bps to comps.
• For Sam's Club, comp sales increased 3.8%, though the trend has moderated (+5.9% in Q2, +6.7% in Q1, +6.8% in Q4). Comps were driven by transactions of +3.9% with average ticket -0.1%, and broad-based strength across both grocery and general merchandise.
• Walmart International led growth this quarter, with sales up 11.4% in constant currency, driven by Flipkart, China, and Walmex. Transaction counts and unit volumes were up across markets, and eCommerce for International grew 26%.
• eCommerce and advertising were standout contributors: globally, eCommerce grew 27% with each segment posting 20%+ growth, while global advertising revenue increased 53% and membership income rose 17%.
• It continues to lean into AI and automation, including its "Sparky" digital agent and agentic AI use cases, as it builds a more personalized, multimodal omnichannel experience that can increasingly rival tech-heavy peer Amazon (AMZN).
• Notably, gross margin expanded slightly despite tariff and high rollbacks. Management said tariff impacts have been less than initially expected, and is managing cost of goods, mix, and automation so it can maintain its active rollbacks, while still growing operating income faster than sales.
• Looking ahead, management expects consumers to continue gravitating to Walmart for value, with strength across income cohorts and solid back-to-school and Halloween trends supporting confidence into the holiday season.

Briefing.com Analyst Insight

This was a strong report from Walmart, and as the largest retailer, it offers an important read-through on consumer behavior. Its results show that value remains paramount, but not at the expense of convenience, as customers across income levels continue to trade into Walmart for both price and faster delivery options. Notably, while grocery performance remains solid, Walmart also called out improving trends in discretionary categories like fashion and home, which contrasts with Target (TGT), where discretionary softness was more pronounced. Additionally, robust eCommerce, a rapidly scaling advertising and membership profit stream, and the pending move of its listing to Nasdaq all underscore Walmart's increasing tilt toward a tech-enabled retail model alongside Amazon. Overall, the strong results, raised guidance, and consistent execution across both value and convenience are lifting shares today, with the stock now nearing its all-time high.