Key takeaways from Walmart’s (WMT) Q3 2025 report

Over the years, Walmart Inc. (NYSE: WMT) has followed a successful business model focused on offering customers a unique shopping experience and the best prices. While the retail giant continues to strengthen store traffic by providing value to customers through effective cost management, it has also benefited from improvements in consumer spending in recent quarters. The company on Tuesday reported stronger-than-expected sales and earnings for the third quarter of 2025.

Stock Rallies

After growing steadily since the beginning of the year, Walmart’s stock climbed to an all-time high soon after the earnings announcement. The stock has grown an impressive 60% this year and remains a good long-term bet, thanks to the company’s strong fundamentals and resilience to headwinds like changes in consumers’ spending habits. The popular membership program and facilities like curbside pickup are attracting all kinds of customers to Walmart stores lately, including high-income shoppers.

In the October quarter, total sales increased to $ 168.0 billion from $159.44 billion in the comparable period last year. Earnings, on an adjusted basis, increased to $0.58 per share in Q3 from $0.51 per share last year. Net income attributable to the company was $4.58 billion or $0.57 per share in the third quarter, compared to $453 million or $0.06 per share in Q3 2024.

Broad-based Growth

Reflecting the management’s aggressive efforts to ramp up the digital platform, e-commerce sales climbed 22% during the three months. Sales and comparable sales grew across the Walmart US, Sam’s Club, and International Segments, including China and Canada. US comparable store sales growth accelerated for the third consecutive quarter. Earnings and revenue beat estimates, continuing the trend seen for over two years.

Strong pricing power has helped the store chain consistently expand the market for its grocery and other consumer essentials segments by attracting price-conscious customers through the Everyday Low Price strategy. At the same time, Walmart’s extensive store network and efficient logistics system allow it to effectively compete with others like Costco and Target.

From Walmart’s Q3 2025 earnings conference call:

“We’re broadening our assortment, improving customer experience, and earning their trust while seeing share gains as a result. We’re also realizing benefits from the investments we’ve made in our core omni-retail business and seeing improved profitability with newer businesses. We’re executing on our strategy and the business model is delivering as it’s designed to do, with operating income growing faster than sales, and yet there is much more opportunity ahead.”

Lifts Guidance

Expecting the current momentum to continue through the final months of the year, Walmart’s leadership raised its full-year sales growth guidance to 4.8-5.1% from the earlier forecast of 3.75-4.75%. The full-year EPS guidance has been increased to $2.42-2.47 from $2.35-2.43 the management had predicted a few months ago. The strong momentum, both in the legacy business and e-commerce platform, indicates that Walmart is headed for a strong holiday season.

Walmart’s shares traded above their 12-month average price so far in the second half of the year. The stock traded up 4% on Tuesday afternoon.