Comprehensive Customer Strategy + E-commerce Business Boost Walmart Inc. (WMT.US) Q3 Earnings Exceed Expectations Once Again, Raising Full-Year Performance Guidance

US retail giant Walmart Inc. (WMT.US) announced better-than-expected performance in the third quarter of its 2026 fiscal year, and raised its full-year performance guidance for the second consecutive quarter, demonstrating the continued strong growth momentum of the world's largest retailer in an uncertain economic environment - the company is attracting more price-sensitive consumers and gaining a larger share in the digital consumer sector. According to the financial report, Walmart Inc.'s Q3 total revenue increased by 5.8% year-on-year to $179.496 billion, better than the market's expected $177.57 billion. Net sales increased by 5.8% year-on-year to $177.769 billion; membership and other income increased by 9.0% year-on-year to $1.727 billion. The company's net profit attributable to the company was $6.143 billion, an increase of 34.2% year-on-year. Adjusted operating profit was $7.246 billion, an increase of 8.0% year-on-year, better than the market's expected $7.03 billion; adjusted earnings per share were $0.66, better than the market's expected $0.60. Looking ahead, Walmart Inc. currently expects full-year net sales for the 2026 fiscal year to increase by 4.8%-5.1%, up from the previous expectation of 3.75%-4.75%; adjusted operating profit is expected to increase by 4.8%-5.5%; adjusted earnings per share are expected to be $2.58-$2.63, up from the previous expectation of $2.52-$2.62. The latest financial report from Walmart Inc. may alleviate concerns about consumer spending cuts in the background of a cooling job market, corporate layoffs, and rising prices. With its huge scale and extensive business, Walmart Inc. is considered an economic barometer. Its performance is closely watched during times of economic data shortage and uncertainty due to government shutdowns. Walmart Inc. CFO John David Rainey said, "We are closely monitoring consumer dynamics but remain optimistic about overall business." He noted that the business continues to maintain growth momentum. E-commerce and advertising business perform well E-commerce is one of the highlights of Walmart Inc.'s performance. E-commerce sales in the US market increased by 28%, driven by increased store delivery orders and growth in advertising and third-party markets; international market e-commerce sales surged by 26%. John David Rainey stated that Walmart Inc. continues to expand its delivery range, reduce transportation costs, and expand the third-party market. The retail giant will be listed on the NASDAQ stock exchange on December 9, highlighting its emphasis on technological transformation. Meanwhile, with increased digital traffic and expansion of third-party markets, advertising has become an important growth area for Walmart Inc. Global advertising business in the third quarter increased by 53%, including the contribution of Vizio, a smart TV manufacturer acquired for $2.3 billion last year. The Walmart Connect US advertising business grew by 33% year-on-year. Attracting consumers from all income levels By offering low prices, a wide range of products, and growing digital services, Walmart Inc. has expanded its market share among all income groups. The grocery business, which accounts for about 60% of US sales, is driving demand as consumers prioritize essential purchases. In recent years, Walmart Inc. has attracted more high-income customers through online services and fast delivery, and its digital platform now includes luxury items such as second-hand Chanel handbags. John David Rainey stated that overall consumer spending remains stable, but there is a "slight slowdown" in spending by low-income households. Consumption by middle and high-income earners has not contracted, with some high-income groups spending more in certain categories. He added that the temporary suspension of the Supplemental Nutrition Assistance Program (food stamps) distribution led to a temporary sales decline in the fourth quarter, but has since recovered. In the third quarter, Walmart Inc.'s US product prices rose by 1%, showing that the company has successfully minimized the inflationary impact of tariffs. Walmart Inc. is absorbing some costs, passing on other costs, and closely cooperating with suppliers to keep prices as low as possible, while sourcing products from other regions when necessary. However, John David Rainey also pointed out that there will be more cost pressures in the coming months. Walmart Inc. has fully introduced artificial intelligence into its operations and partnered with OpenAI to allow consumers to purchase Walmart Inc. products through ChatGPT. It is worth noting that compared to its peers, Walmart Inc. has shown strong performance. Earlier, Target Corporation (TGT.US) and Home Depot, Inc. (HD.US) lowered their full-year outlook due to lower-than-expected quarterly sales. Other consumer-related businesses (such as chain restaurants) have also warned that younger consumers are reducing spending. CEO transition approaching This quarter will be the last quarter that current CEO Doug McMillon leads Walmart Inc., as he plans to retire next year. John Furner, who has led Walmart Inc.'s US operations since 2019, will succeed as CEO. Doug McMillon will remain on Walmart Inc.'s board until June next year and continue to serve as an advisor until the end of the next fiscal year. Doug McMillon has worked at Walmart Inc. since his teenage years and is credited with successfully transforming the company into a digital giant consisting of e-commerce, advertising, and third-party markets. During his tenure, Walmart Inc.'s stock price has quadrupled. Similar to Doug McMillon, John Furner has also worked at Walmart Inc. for decades. His father was a Walmart Inc. employee, and he himself started as a part-time employee in the gardening section of a Walmart Inc. store in Arkansas. John Furner has long been seen as Doug McMillon's successor and will lead Walmart Inc. into the AI era and continue growth amidst fierce competition. Walmart Inc. stated that it will announce John Furner's successor before the end of this fiscal year.