Retail Royalty: Why Walmart Continues to Eclipse Competitors

In a retail arena where giants falter and upstarts crumble, Walmart’s Q3 earnings triumphantly declare: the king isn’t just holding court, it’s expanding the empire.It’s certainly been a mixed bag in terms of retail earnings this week. We saw home improvement retailer Home Depot post a mediocre quarterly performance that fell short of analyst expectations on profitability amid softer-than-anticipated demand. But rival Lowe’s maintained its focus on operational efficiencies and Pro segments which provided an edge, leading to a more resilient bottom line despite similar macro pressures like deferred big-ticket projects.We then heard from Walmart competitor Target, who saw recent troubles linger in the latest quarter as the company missed on revenues and posted weak comparable sales. The number of transactions declined year-over-year as well for Target, reinforcing a theme of overall cautious spending and leading the retailer to cut its full-year profit guidance ahead of a potentially tepid holiday season.All signs pointed to the weak retail sentiment spilling over into Walmart’s results, but the king of retail had other plans.Walmart’s Third-Quarter Masterclass in Outperforming PeersWalmart delivered a robust fiscal third-quarter performance this morning, surpassing analyst expectations on both revenue and earnings amid resilient consumer demand for value and essentials. The company reported total revenue of $179.5 billion, up 5.8% year-over-year (+6.0% in constant currency), exceeding the Zacks Consensus Estimate of $177.14 billion by 1.3%.The big-box retailer resumed its long history of earnings beats after a rare miss in the prior quarter. Adjusted earnings per share came in at $0.62, edging by our projection of $0.61 by 1.6%. Walmart’s bottom line grew 6.9% year-over-year; the positive surprise was driven by market share gains across income cohorts and operational efficiencies.Comparable sales showed solid growth, with Walmart U.S. comps rising 4.5% (ex-fuel), supported by a 1.8% increase in transactions and a 2.7% uptick in average ticket. This follows a 4.6% increase in the prior quarter, where e-commerce played a significant role in boosting overall performance.And once again, e-commerce was a standout with global sales surging 27%, fueled by store-fulfilled pickup, delivery, and marketplace expansions. Membership trends continued upward, with global membership income rising 16.7%. Advertising also shone, with global growth at 53% (including VIZIO) and Walmart Connect in the U.S. up 33% from the year-ago period.Consumer spending patterns revealed a focus on value, with strength in groceries, health and wellness, and private brands, alongside modest gains in general merchandise like apparel and toys. Foot traffic improved, with global weekly visits exceeding 270 million, and higher-income households driving incremental gains.Positive Q3 Results Lead to Enhanced OutlookWalmart updated its fiscal 2026 outlook upward, with the company now expecting net sales growth of 4.8%-5.1% (previously 3.75%-4.75%), and adjusted EPS of $2.58-$2.63 (up from $2.52-$2.62). However, the Bentonville-based retailer said it now expects capital expenditures for the year to be approximately 3.5% of net sales, on the high end of its previous range.These results position Walmart favorably going forward, with its digital and membership momentum providing a competitive edge in a price-sensitive environment, potentially sustaining market share gains through the holiday quarter under incoming CEO John Furner's value-focused strategy. Walmart is aggressively emphasizing deeper discounts and broader "bigger savings" across toys, electronics, home goods, and gifts—particularly on items under $20—to appeal to budget-strapped consumers.The approach prioritizes unmatched value combined with enhanced convenience, including accelerated same-day pickup, faster delivery, and a longer promotional calendar that spreads deals beyond Black Friday.In contrast to Target's TGT recent Q3 report, which featured weak comparative sales as well as a net sales decline that also missed estimates, Walmart's comprehensive beats highlight its broader appeal across essentials and e-commerce, underscoring resilience amid economic pressures.For the broader retail industry, Walmart's performance signals a bifurcated consumer landscape, where value-oriented giants thrive by attracting diverse income groups while discretionary-focused peers like Target face headwinds, suggesting a continued emphasis on affordability and omnichannel strategies to navigate uncertainty.WMT shares were trading up more than 6% in early trading following the release:Image Source: StockChartsWalmart’s Tech-Driven Evolution Results in Nasdaq ListingWalmart’s announcement to transfer its stock listing from the New York Stock Exchange to the Nasdaq Global Select Market, while retaining the ticker symbol “WMT,” appears driven by several strategic considerations. The primary stated reason is to better align with Walmart’s evolving emphasis on technology and innovation in retail. Specifically, the move underscores shared values between Walmart and Nasdaq, including a “technology-forward approach,” delivering exceptional client value, and redefining industries through innovation.This comes amid Walmart’s broader AI push, including investments in supply chain optimization, predictive analytics, and personalized shopping tools, positioning the retailer more like a tech-enabled company rather than a traditional brick-and-mortar giant. Another likely factor is the opportunity for Walmart WMT to be added to the Nasdaq 100 Index, which tracks the 100 largest nonfinancial companies on the Nasdaq. This could enhance liquidity, visibility among tech-savvy investors, and overall stock performance.While not explicitly stated in the announcement, general advantages of listing on Nasdaq over NYSE could play a role, such as potentially lower listing fees, more flexible governance rules, or greater appeal to growth-oriented investors.Nasdaq’s reputation as a hub for innovative companies aligns with Walmart’s transformation, especially as e-commerce now accounts for a significant portion of its growth (up 27% in Q3). The timing, coinciding with strong Q3 results and an upward revision to FY2026 guidance, suggests the move is part of a broader effort to signal confidence in its tech-driven future.Overall, the outlook remains bright for the world’s largest retailer. The third-quarter earnings report reinforces Walmart's role as a barometer for consumer health, indicating stability and potential for further upside if holiday momentum builds.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks