US' Walmart posts strong Q3 FY26 with 27% global e-commerce jump

Walmart US drove the quarter with net sales rising 5.1 per cent to $120.7 billion. Comparable sales (comps) increased 4.5 per cent. E-commerce contributed around 440 basis points to comps, with store-fulfilled delivery channels expanding nearly 70 per cent. The gross profit rate improved by 19 basis points. Operating income increased 6.3 per cent to $5.8 billion, outpacing sales growth amid improved e-commerce economics and disciplined inventory control. US inventory rose just 2.6 per cent, about half the pace of sales growth, Walmart said in a press release.

Walmart International posted net sales of $33.5 billion, up 10.8 per cent, or 11.4 per cent in constant currency. Growth was driven by Flipkart, China and Walmex, with transaction volumes and unit sales rising across markets. E-commerce sales advanced 26 per cent on the back of strong marketplace activity and store-fulfilled pickup and delivery.

The timing of Flipkart’s Big Billion Days boosted Q3 sales and advertising—international ad revenue jumped 34 per cent—but is expected to temper growth in Q4. International operating income fell 41.7 per cent to $0.7 billion. Adjusted operating income in constant currency increased 16.9 per cent, reflecting stronger market performance and reduced eCommerce losses.

Walmart ended the quarter with cash and cash equivalents of $10.6 billion and total debt of $53.1 billion. Operating cash flow rose sharply to $27.5 billion, an increase of $4.5 billion, while free cash flow climbed to $8.8 billion. Year-to-date, the retailer repurchased 75.3 million shares worth $7 billion. Inventory reached $65.4 billion, up 3.2 per cent year on year.

Consolidated net income attributable to Walmart rose 34.2 per cent to $6.14 billion. Adjusted EPS came in at $0.62, excluding gains of $0.20 from equity and other investments and $0.02 from a legal settlement, partly offset by $0.07 linked to incremental PhonePe share-based compensation. Return on assets stood at 8.4 per cent, while return on investment was 14.8 per cent, with discrete items weighing on both metrics.

For FY26, Walmart raised its net sales in constant currency which are projected to grow 4.8 to 5.1 per cent, while adjusted operating income is expected to increase 4.8 to 5.5 per cent. Adjusted EPS is estimated at $2.58 to $2.63, including a currency headwind of $0.01 to $0.02. Capital expenditure is forecast at roughly 3.5 per cent of net sales.

With sustained momentum in e-commerce, accelerating advertising revenues and solid performance in key international markets, Walmart enters the final quarter of the fiscal year with strengthened operational footing and improved profit visibility.

“The team delivered another strong quarter across the business. E-commerce was a bright spot again this quarter. We’re gaining market share, improving delivery speed, and managing inventory well. We’re well positioned for a strong finish to the year and beyond that, thanks to our associates. It’s been an honour to serve them as CEO, and I’m as excited about the future of this company as I’ve ever been. John Furner is a fantastic leader with a proven track record. I couldn’t be happier for him and for Walmart,” said Doug McMillon, president and CEO at Walmart.

ALCHEMPro News Desk (SG)