The great times keep rolling on at Walmart (WMT), as inflation-weary shoppers proceed to look for value.
On Tuesday, the world’s biggest retailer posted fiscal third quarter results that easily beat Wall Street expectations. Sales of $169.59 billion topped analyst estimates for $167.5 billion. Adjusted earnings per share eclipsed estimates by 5 cents at $0.58.
“We had a robust quarter, continuing our momentum,” CEO Doug McMillon said in a press release. “Within the US, in-store volumes grew, pickup from store grew faster, and delivery from store grew even faster than that.”
Shares of Walmart rose over 4% in premarket trading on Tuesday. The stock is up 60% 12 months to this point, out-performing the Dow Jones Industrial Average’s (^DJI) 15% advance.
Here’s what Walmart posted for its third quarter of fiscal 12 months 2025 results, in comparison with Bloomberg consensus estimates:
Revenue: $169.59 billon versus $167.5 billion
Adjusted earnings per share: $0.58 versus $0.53
Overall same-store sales growth: 5.5% versus 3.81%
Walmart US same-store sales growth: 5.3% versus 3.68%
Traffic: 3.1% versus 2.82%
Ticket growth: 2.1% versus 1.20%
E-commerce growth: 22% versus 2.22%
Sam’s Club US same-store sales growth: 7.0% versus 4.22%
Walmart US saw same-store sales jump 5.3%, driven by more foot traffic, up 3.1% and the next average ticket, up 2.1%. That is in comparison with a 4.9% increase it posted this time last 12 months.
Within the US, e-commerce sales jumped 22%, while promoting unit Walmart Connect grew 26%. Membership income also saw a double-digit increase.
The retailer notched gains across all product categories and income cohorts, primarily driven by upper-income households.
Sales within the groceries category grew by mid-single digits as “food units reached highest level in 4 years” led by pantry products. Personal care and household cleansing products also saw sales growth. Its private-brand penetration rose 80 basis points because it doubled down with latest lines like BetterGoods early this 12 months.
Groceries make up about 60% of US sales for Walmart.
Walmart signaled it sees the momentum continuing for the vacation shopping season.
The retail giant raised its guidance for fiscal 12 months 2025 for the third time.
Net sales at the moment are expected to grow between the range of 4.8% to five.1%. Previously, Walmart guided to three.75% to 4.75% sales growth. Coming into the 12 months, Walmart had expected 3.0% to 4.0% sales growth.
Adjusted operating income is predicted to grow between 8.5% to 9.25%, in comparison with previous guidance of 6.5% to eight.0%.
Adjusted earnings per share for the complete fiscal 12 months is pegged to are available in between $2.42 to $2.47, above the high end of the previously expected range of $2.35 to $2.43.
Walmart logo is seen on a truck semitrailer on the highway in United States on July 12, 2024. (Photo by Jakub Porzycki/NurPhoto via Getty Images) ·NurPhoto via Getty Images
Walmart has maintained an edge in value, offering prices which might be about 10% to 12% cheaper for a median basket of food, Goldman Sachs analyst Kate McShane told Yahoo Finance prior to the outcomes.
Its strategy is even “giving Amazon (AMZN) quite a lot of competition,” LSEG Director of Consumer Research Jharonne Martis told Yahoo Finance ahead of the outcomes.
“They’re giving the buyer the power to buy the way in which they wish to, whether it’s ordering it in your mobile … and picking it up at the shop in your way home or simply having it delivered right there from the shop to your home,” Martis said.
To that end, Walmart’s US health and wellness business grew sales by mid-teens, led by a rise in pharmacy scripts. Sales of GLP-1 drugs contributed about 1% to the segment’s sales.
The final merchandise category still saw sales softness amid consumer cautiousness, growing sales by low-single digits.
Walmart’s alternative revenue streams through membership models like Walmart+ and its promoting channel, Walmart Connect, also proceed to perform well.
Its e-commerce marketplace is “getting very near being profitable,” said McShane. Within the quarter, global e-commerce sales grew 27% overall, boosted by store pickup and marketplace sales.
Its membership and other income grew 16.1% year-over-year to $1.59 billion.
“There’s more buy-in from the investor base [in] the choice revenue streams that Walmart’s been going after … that they’re faster-growing and higher-margin businesses that ought to drive higher profitability for the corporate long term,” McShane said.
And investors are maintaining a tally of Walmart International. Kathryn McLay, who previously served because the CEO of Sam’s Club, took the helm last September following Judith McKenna’s retirement.
The corporate is specializing in key markets like China, India, and Mexico and doubling down on low prices.
International revenue grew 8.0% to $30.3 billion in Q3, led by growth from Indian e-commerce firm Flipkart, which Walmart owns a majority stake in. Businesses in Mexico, referred to as Walmex, and China, reported strength from Sam’s Club and e-commerce.
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Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at bdipalma@yahoofinance.com.