TLDR

  • Walmart reported Q3 earnings of $0.62 per share, beating analyst expectations of $0.60, with revenue reaching $179.5 billion versus $177.6 billion expected

  • US same-store sales rose 4.5%, exceeding the 4% forecast, driven by 1.8% increase in foot traffic and 2.7% rise in average ticket

  • The company raised full-year guidance, now expecting net sales growth of 4.8%-5.1% and adjusted EPS between $2.58-$2.63

  • Global eCommerce sales surged 27% and Walmart’s advertising business jumped 53%, with Walmart Connect up 33% in the US

  • Stock fell 2% after earnings despite the beat, while CEO Doug McMillon announced his retirement with John Furner set to take over

Walmart posted third-quarter results that beat Wall Street forecasts on Thursday, yet investors sent shares down 2% in early trading. The retailer reported adjusted earnings of $0.62 per share, topping the $0.60 consensus estimate.

Revenue climbed 6% year-over-year to $179.5 billion. Analysts had expected $177.6 billion. The results marked CEO Doug McMillon’s final quarterly report before his planned retirement early next year.

$WMT (Walmart) #earnings are out: pic.twitter.com/fveL3rzXRv

— The Earnings Correspondent (@earnings_guy) November 20, 2025

US same-store sales increased 4.5%, beating the 4% forecast. Foot traffic rose 1.8% while the average transaction value grew 2.7%. The combination drove solid in-store performance across Walmart’s domestic locations.

The company’s grocery business, which accounts for roughly 60% of US sales, grew by low single digits. Price rollbacks and delivery options helped drive unit volume growth. Customers also increasingly turned to Walmart’s private label brands during the quarter.

Digital Growth Powers Revenue Beat

Global eCommerce sales surged 27% in the quarter. The strong digital performance helped offset softer results from Sam’s Club, which posted 3.8% growth versus Wall Street’s 4.8% expectation.

Walmart’s advertising business exploded with 53% growth, including contributions from VIZIO. Walmart Connect, the company’s US advertising platform, grew 33%. Membership income jumped 16.7%.

Health and wellness sales grew in the low single digits, driven by increased pharmacy prescription counts. Digital merchandising also expanded, with strength in fashion, home, and auto care categories.

Raised Guidance Reflects Confidence

Management lifted its full-year outlook. Net sales are now expected to increase 4.8% to 5.1%, up from the previous range of 3.75% to 4.75%. The company also boosted its adjusted earnings forecast to $2.58-$2.63 per share, from $2.52-$2.62 previously.

Capital expenditures for the year are projected to hit 3.5% of net sales. That’s at the high end of the previous 3%-3.5% range. The spending reflects continued investment in stores and supply chain infrastructure.

“We’re gaining market share, improving delivery speed, and managing inventory well,” McMillon said in the earnings release. The CEO praised incoming leader John Furner as “a fantastic leader with a proven track record.”

Leadership Transition Takes Center Stage

McMillon announced last week that he would step down early next year. Furner, currently president of Walmart US, will take over as CEO. The transition comes as the retailer continues to gain market share in a challenging consumer environment.

“It’s been an honor to serve them as CEO, and I’m as excited about the future of this company as I’ve ever been,” McMillon said Thursday. The leadership change caps his tenure at the helm of the world’s largest retailer.

Gross margin improved by 2 basis points, led by gains in the US business. International margins faced pressure from the timing of Flipkart’s Big Billion Days event. Operating income decreased 0.2%, primarily due to a non-cash share-based compensation charge at PhonePe.

Adjusted operating income rose 8% in constant currency terms. The metric excludes one-time charges and currency fluctuations. Revenue growth of 5.8% on a reported basis translated to 6% in constant currency.

Walmart also announced plans to move its stock listing from the NYSE to the Nasdaq. The company will maintain its WMT ticker symbol. The switch will take effect in the coming months.

The post Walmart (WMT) Stock: Retail Giant Beats on Sales But Wall Street Isn’t Impressed appeared first on Blockonomi.