Walmart Reports Strong Growth, Raises Revenue Outlook for 2026

Walmart Inc. has reported a robust performance for its fiscal third quarter, surpassing Wall Street expectations and raising its revenue outlook for the upcoming year. The retail giant, based in Arkansas, achieved a revenue of $179.5 billion for the three-month period ending on October 31, 2023, exceeding analysts’ forecasts of $177 billion. This marks a 6% increase compared to the same quarter in the previous year.

Sales within Walmart U.S. rose by 5.1%, amounting to $120.7 billion, while e-commerce sales surged by 28%. This growth represents the company’s seventh consecutive quarter of online sales increasing by over 20%. The data suggests that consumers are still engaging with retail despite prevailing economic challenges.

Consumer Trends and Leadership Changes

Walmart’s same-store sales, a key indicator of retail health, increased by 4.5%, reflecting a rise in both the number of shoppers and the size of their purchases. The average spending per transaction grew by 2.7%, with overall transactions up by 1.8%. According to Walmart’s figures, there has been a noticeable shift as higher-income consumers seek value, contributing to Walmart’s expanding market share.

The company also reported significant growth in its health, grocery, and general merchandise categories. This increase in general merchandise sales is particularly noteworthy, given the recent trend of consumers cutting back on discretionary spending. Walmart attributed this success to its expanded product assortment and stronger private-label offerings, which are often more affordable than national brands.

Leadership changes at Walmart have coincided with these positive results. Just a week prior to the earnings announcement, it was revealed that John Furner, the head of Walmart U.S., will succeed Doug McMillon as head of the global business in February 2024. McMillon has served as CEO for over a decade.

Revised Financial Projections and Stock Market Move

Looking ahead, Walmart has revised its financial projections for fiscal 2026. The company now anticipates net sales growth between 4.8% and 5.1%, an increase from its previous estimate of 3.75% to 4.75%. Adjusted operating income is expected to rise between 4.8% and 5.5%, with adjusted earnings per share projected to fall between $2.58 and $2.63, up from the earlier range of $2.52 to $2.58.

In a significant move, Walmart announced plans to transfer its common stock listing from the New York Stock Exchange to the Nasdaq, effective December 9, 2023. The change aligns with Walmart’s strategic commitment to a “people-led, tech-powered” approach to retail, as stated by CFO John David Rainey. He emphasized that the company aims to set new standards for omnichannel retail by integrating automation and artificial intelligence to enhance customer experiences.

As Walmart continues to adapt to changing consumer behavior and market dynamics, its latest financial results and strategic initiatives highlight its resilience and forward-looking approach in a competitive retail environment.