BENTONVILLE, Ark. — Walmart Inc. raised its full-year financial outlook after reporting another quarter of solid sales growth, underscoring the durability of consumer spending when value and convenience align—even as economic pressures continue to weigh on lower-income households.
The world’s largest retailer said its U.S. comparable sales rose 4.5% in the quarter ended October 31, fueled by gains across categories and accelerating e-commerce growth. Globally, online sales increased 27%, with every business segment posting gains of more than 20%. Revenue climbed 5.8% to $179.5 billion, and the company now expects fiscal 2026 net sales to grow between 4.8% and 5.1%, with adjusted operating income rising 4.8% to 5.5%.
Walmart shares rose nearly 6% in morning trading Thursday after the results and guidance were released.
Value Resonates Across Income Groups
While the retailer continued to attract new customers, particularly higher-income households, executives noted a widening divide in spending patterns as the quarter progressed. Walmart observed pullbacks late in the period from lower-income consumers, partly due to a temporary pause in Supplemental Nutrition Assistance Program funding.
Still, broad demand for everyday essentials and holiday-season preparation lifted results. Prices at Walmart rose just 1.3% in the quarter, well below the 3% overall inflation rate reported for September. Rainey said customers continue to gravitate toward retailers delivering both value and convenience.
E-Commerce and Advertising Propel Growth
Digital performance remained a standout. Walmart expanded rapid-delivery capabilities—now reaching 95% of U.S. households—and saw strong momentum in marketplace sales, advertising, and store-fulfilled delivery. In the U.S., e-commerce sales surged 28%, while orders delivered through expedited, store-fulfilled channels grew nearly 70%.
The gains helped drive improved profitability online, contributing to a 6.3% increase in Walmart U.S. operating income. Membership income grew at a double-digit pace, aided by the ongoing expansion of Walmart+ benefits. Meanwhile, the company’s global advertising business jumped 53%, including a 33% increase in Walmart Connect sales in the U.S. (excluding Vizio).
Inventory levels also remained well-controlled, up just 2.6%—about half the pace of sales growth—while maintaining healthy in-stock positions.
Leadership Transition Ahead
Chief Executive Doug McMillon said the results reflect strong execution heading into the key holiday period. “The team delivered another strong quarter across the business,” McMillon said. “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.”
McMillon, who has announced plans to retire from his role as CEO effective January 31, also praised his successor, John Furner, currently president and CEO of Walmart U.S. “I’m as excited about the future of this company as I’ve ever been,” he said. “John Furner is a fantastic leader with a proven track record. I couldn’t be happier for him and for Walmart.”
Consumer Caution Remains, but Momentum Holds
Despite macroeconomic uncertainty, Walmart continues to gain market share across grocery, health and wellness, and general merchandise—signaling that consumers still spend when they perceive strong value. Rainey cautioned, however, that financial strain is real for many households, emphasizing uneven spending patterns that are likely to persist.
For now, Walmart’s combination of low prices, rapid delivery, expanding membership benefits, and strong in-store execution continues to resonate broadly. With e-commerce economics improving and advertising rising sharply, the retailer enters the holiday season with considerable operational and financial momentum.
