Walmart Inc. (NYSE:WMT) posted stronger-than-expected third-quarter results on Wednesday, yet its shares still retreated 2.1% in the wake of the announcement.
The retail giant recorded adjusted earnings of $0.62 per share, ahead of the $0.60 analysts were looking for. Revenue also surpassed expectations, coming in at $179.5 billion versus the consensus estimate of $177.45 billion. Sales were up 5.8% year over year, or 6.0% in constant currency, fueled by a powerful 27% jump in global eCommerce activity.
Comparable sales in Walmart U.S. rose 4.5%, reflecting broad-based strength across categories. The company’s global advertising segment delivered a standout performance, climbing 53%, including contributions from VIZIO, while Walmart Connect in the U.S. grew 33%. Membership income also posted a significant 16.7% gain.
“The team delivered another strong quarter across the business. eCommerce was a bright spot again this quarter,” said Doug McMillon, President and CEO of Walmart. “We’re gaining market share, improving delivery speed, and managing inventory well.”
Even with the solid beat, the stock moved lower. Walmart boosted its full-year FY26 outlook, now forecasting net sales growth of 4.8% to 5.1% and adjusted operating income growth of 4.8% to 5.5%, both on a constant currency basis. Adjusted EPS is now projected between $2.58 and $2.63, compared with prior guidance of $2.52 to $2.62.
Gross margin improved modestly by 2 basis points, led primarily by Walmart U.S., though international results were partly held back by the timing of Flipkart’s Big Billion Days sale. Overall operating income dipped 0.2%, largely because of a non-cash share-based compensation charge at PhonePe, while adjusted operating income increased 8.0% in constant currency.