Walmart Lifts FY26 Outlook on Q3 Earnings & Revenue Beat

Walmart Inc. WMT raised its fiscal 2026 guidance once again after posting robust third-quarter results. During the quarter, both the top and bottom lines increased year over year and beat the Zacks Consensus Estimate. E-commerce remained a standout performer, with WMT witnessing market share gains, improved delivery speed and efficient inventory management.Walmart’s Quarterly Metrics: Key InsightsWMT’s adjusted earnings of 62 cents per share increased 6.9% year over year. The metric surpassed the Zacks Consensus Estimate by a penny.Walmart Inc. Price, Consensus and EPS Surprise Walmart Inc. price-consensus-eps-surprise-chart | Walmart Inc. QuoteWalmart’s total revenues rose 5.8% year over year to $179.5 billion, beating the consensus mark of $177.14 billion. On a constant-currency or cc basis, revenues grew 6%.Walmart’s global e-commerce sales rose 27% thanks to store-fulfilled pickup & delivery and marketplace. The company witnessed more than 20% growth in all segments. It saw a 16.7% increase in membership income. WMT’s global advertising business advanced 53%.The consolidated gross profit margin expanded two bps to 24.2%, driven by Walmart U.S., somewhat negated by the International segment.Adjusted operating expenses leveraged four bps, supported by strict expense management. Adjusted operating income came in at $7.2 billion, up 8% at cc.Decoding Walmart’s Segmental ShowWalmart U.S.: The segment’s net sales grew 5.1% year over year to $120.7 billion. Strong sales performance was driven by e-commerce strength and share growth in all categories. U.S. comp sales, excluding fuel, were up 4.5%, fueled by transaction growth of 1.8%, an average ticket increase of 2.7%, and e-commerce contribution of 440 basis points. E-commerce sales rose 28%, driven by store-fulfilled delivery, advertising and marketplace strength. Segment operating income jumped 6.3% to $5.8 billion.Walmart International: The segment’s net sales inched up 10.8% to $33.5 billion. Foreign currency fluctuations adversely impacted sales by $0.2 billion. On a cc basis, net sales jumped 11.4%, driven by strong performance in China, Flipkart and Walmex, supported by higher transaction counts and increased unit volumes. Sales were driven by both stores and e-commerce, with solid momentum in all categories. E-commerce sales increased 26%, driven by strong growth in store-fulfilled pickup and delivery services and marketplace performance, with a higher digital sales mix across markets. Adjusted operating income, on a cc basis, jumped 16.9% to $1.4 billion.Sam’s Club U.S.: The segment, which comprises membership warehouse clubs, witnessed a net sales increase of 4.4% to $21.1 billion (excluding fuel). Sam’s Club’s comp sales, excluding fuel, grew 3.8%. While transactions rose 3.9%, the average ticket dipped 0.1%. Sales growth was driven by strong performance in grocery and general merchandise.E-commerce net sales jumped 22% at Sam’s Club U.S., thanks to strength in club-fulfilled pickup & delivery. Membership income increased 7.1%, supported by consistent growth in member count, strong renewal rates and Plus members. The segment’s operating income totaled $0.7 billion, up 5.8% year over year.WMT Stock: Other Updates & DevelopmentsThe Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $10.6 billion and total debt of $53.1 billion.On a year-to-date basis, WMT generated an operating cash flow of $27.5 billion and a free cash flow of $8.8 billion. In fiscal 2026, capital expenditure is likely to account for 3-3.5% of net sales.Year to date, Walmart repurchased 75.3 million shares for $7 billion, with $5.1 billion remaining under its $20 billion authorization. The company paid dividends worth $5.7 billion in the same time frame.What to Expect From WMT in FY26?For fiscal 2026, WMT now expects consolidated net sales growth of 4.8-5.1% (at cc) compared with prior guidance of 3.75-4.75%. The adjusted operating income is expected to increase 4.8-5.5% at cc for the year.Walmart now expects adjusted EPS for fiscal 2026 to be in the $2.58-$2.63 range compared with prior guidance of $2.52-$2.62. The guidance includes an expected impact of 1-2 cents from adverse currency fluctuations. WMT recorded an adjusted EPS of $2.51 in fiscal 2025.WMT’s shares have gained 2.7% in the past three months compared with the industry’s growth of 2.2%.Key PicksOllie's Bargain Outlet Holdings, Inc. OLLI operates as a retailer of closeout merchandise and excess inventory in the United States, and currently carries a Zacks Rank #2 (Buy). OLLI delivered a trailing four-quarter earnings surprise of 4.2%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Ollie's current fiscal-year sales and earnings implies growth of 16.4% and 16.5%, respectively, from the year-ago reported numbers.Boot Barn Holdings BOOT operates specialty retail stores in the United States and internationally, and carries a Zacks Rank #2 at present. BOOT delivered a trailing four-quarter earnings surprise of 5.4%, on average.The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and earnings indicate growth of 16.2% and 20.5%, respectively, from the year-ago reported numbers.American Eagle Outfitters AEO operates as a multi-brand specialty retailer in the United States and internationally, and currently carries a Zacks Rank #2. AEO delivered a trailing four-quarter earnings surprise of 30.3%, on average.The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year sales indicates a decline of 0.1% from the year-ago period reported number.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 Walmart Inc. (WMT): Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report Ollie's Bargain Outlet Holdings, Inc. (OLLI): 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