Strong consumer demand drives Q3 beat; Walmart (WMT.US) raises full-year financial guidance

On November 19 (Tuesday) before the U.S. stock market, Walmart (WMT.US) reported its financial results for the third quarter of fiscal 2025. The results showed that Walmart's Q3 revenue was US$169.588 billion, up 5.5% YoY, topping analysts' consensus estimate of US$167.49 billion. Of which, net sales were US$168.003 billion, up 5.4%; membership and other revenue was US$1.585 billion, up 16.1%. Operating profit was US$6.708 billion, up 8.2%; adjusted EPS was US$0.58, topping analysts' consensus estimate of US$0.53.

By region, net sales in the U.S. were US$114.9 billion, up 5.0%; same-store sales (excluding fuel) grew 5.3%, topping analysts' consensus estimate of 3.7%. Net sales in international markets were US$30.3 billion, up 8.0%.

While average transaction growth slowed, customers were buying more per transaction, driving sales growth. This growth was largely driven by high-income families with annual incomes of US$100,000 or more. Walmart CFO John David Rainey said that shoppers were selective overall but continued to consume at a steady pace.

Looking ahead, Walmart expects net sales to grow 4.8%-5.1% in fiscal 2025, up from its previous expectation of 3.75%-4.75%; it expects adjusted operating profit to grow 8.5%-9.25%, up from its previous expectation of 6.5%-8.0%; it expects adjusted EPS to be US$2.42-2.47, up from its previous expectation of US$2.35-2.43. John David Rainey said that Walmart raised its full-year earnings expectations mainly reflecting its strong performance in the third quarter, and he expects a slight increase in the next quarter.

As of the time of writing, Walmart rose nearly 4% before the U.S. stock market on Tuesday.