Walmart (NYSE: WMT) has delivered another strong quarterly performance, exceeding expectations for the third quarter of fiscal year 2025 and raising its guidance for the full year. The retail giant's results were driven by robust sales growth across its physical and digital channels, supported by value-conscious consumers navigating inflationary pressures.
The company reported revenue of US$169.59bn, surpassing analysts' forecasts of US$167.5bn. Adjusted earnings per share reached US$0.58, beating estimates of US$0.53. Comparable sales in the US rose 5.3%, driven by a 3.1% increase in foot traffic and a 2.1% rise in average ticket size. E-commerce sales in the US grew by 22%, reflecting the retailer's continued success in delivery and pickup services.
“We had a strong quarter, continuing our momentum,” Walmart CEO Doug McMillon said. “Our teams are executing and delighting our customers and members with the value and convenience they expect from Walmart.”
Walmart’s US operations showed broad-based strength across product categories, with grocery sales rising by mid-single digits and general merchandise seeing a recovery after prolonged declines. Membership income grew by double digits, driven by Walmart+ subscriptions. Meanwhile, global e-commerce sales surged 27%, underpinned by strong growth in Walmart's marketplace and store-fulfilled delivery.
Internationally, revenue increased 8%, led by Flipkart in India and Walmex in Mexico. Walmart Connect, the company's advertising business, saw 28% growth globally, reflecting the rising contribution of higher-margin digital streams to profitability.
Citing strong momentum, Walmart raised its fiscal year 2025 guidance for the third time. Net sales are now projected to grow between 4.8% and 5.1%, up from the previous range of 3.75% to 4.75%. Adjusted operating income is expected to increase by 8.5% to 9.25%, and full-year adjusted earnings per share are forecast between US$2.42 and US$2.47.
CFO John David Rainey noted that the holiday season was "off to a good start," adding that Walmart anticipates continued growth in same-store sales during the fourth quarter, projected at 3% to 4%.
Walmart's shares rose over 4% following the announcement, hitting new record highs. Year-to-date, the stock has gained 65%, significantly outperforming the Dow Jones Industrial Average.
Shares are currently trading 3.73% higher at US$87.25.
