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E-commerce and AI propel Walmart’s impressive Q3 performance

Walmart delivered a standout Q3 FY2025 performance, surpassing revenue expectations with strong growth in e-commerce and advertising. With raised full-year guidance and a value-driven strategy, the retail giant is poised for continued success this holiday.

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BENTONVILLE, Ark. — Walmart reported stronger-than-expected fiscal third quarter FY2025 earnings. The company raised its full-year outlook, citing robust growth in sales, e-commerce and advertising.

Revenue hit $169.59 billion, with adjusted earnings per share at 5 cents, exceeding analyst expectations. Same-store U.S. sales grew 5.3%, fueled by higher foot traffic and transaction values. Chief executive officer Doug McMillon expressed confidence heading into the holiday season, emphasizing Walmart's value-driven approach.

Key drivers included a 27% surge in e-commerce, an 8% increase in international sales and advancements in AI-powered cataloging. The company also raised its FY2025 guidance, projecting more robust net sales and operating income.

Walmart's success also reflects its ability to navigate economic pressures while maintaining affordability for shoppers. Grocery sales, which account for 60% of Walmart's U.S. revenue, grew steadily, supported by pantry staples and household products. Introducing new private label lines like Bettergoods bolstered Walmart's appeal to value-conscious and premium shoppers.

As competitors vie for holiday shoppers, Walmart's omnichannel strategy — spanning in-store, pickup and delivery options — positions it as a preferred destination. Analysts noted that Walmart's investments in technology and alternative revenue streams, like Walmart+, will continue to fuel its growth and profitability.

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