Stronger quarter and higher guidance
Walmart raised its full year guidance for a second time in 2025 after another solid quarter, signaling confidence ahead of the holiday season. The retailer now expects annual net sales to grow between 4.8% and 5.1%, compared with its prior target of 3.75% to 4.75%. It also nudged its adjusted earnings per share outlook to a range of 2.58 to 2.63 dollars, from 2.52 to 2.62 dollars previously.
For the third quarter, adjusted earnings reached 0.62 dollars per share, two cents above Wall Street estimates. Total revenue rose 5.8% year over year to 179.5 billion dollars, topping forecasts of 177.4 billion dollars. U.S. comparable sales, including stores and online, increased 4.5% in the August to October period, ahead of expectations for 3.8% growth. Shares gained almost 6% in early trading following the report.
Ecommerce growth and shifting consumer patterns
Online activity remained a key growth driver. Walmart’s U.S. ecommerce sales jumped 28%, led by strong demand for groceries and faster delivery options. The company said “expedited deliveries” aiming to arrive in under three hours grew 70% in the quarter, marking the seventh straight quarter of U.S. online growth above 20%.
Higher income households continued to play an outsized role in this momentum, driving gains in discretionary categories such as apparel, home goods and furniture. At the same time, spending among lower income customers showed more caution as persistent inflation, a softer labor market, tariffs and uncertainty around the recent U.S. government shutdown weighed on budgets. According to Walmart, the gap in wage growth between income groups is now the widest in nearly ten years.
The mixed backdrop has highlighted a split in U.S. retail. While Walmart benefits from its value positioning and broad customer base, other large chains focused more on discretionary purchases have struggled. Home improvement groups Home Depot and Lowe’s both trimmed their full year targets, and Target reported weaker sales, underscoring differing consumer priorities.
Nasdaq listing, AI adoption and international strength
Walmart also announced it will transfer its stock listing from the NYSE to the Nasdaq starting 9 December, a move the company links to its technology driven strategy. Management said more than 40% of new internal software code is now AI generated or AI assisted, and that over 60% of U.S. freight moves through automated distribution centers. More than half of online orders are fulfilled in automated facilities, reflecting a decade of investment in logistics and automation.
Executives highlighted the use of advanced tools, including agentic AI systems, to improve product catalog accuracy, identify assortment gaps and help customers locate items more efficiently. CFO John David Rainey said the shift to Nasdaq aligns with Walmart’s “people led, tech powered” long term approach.
Outside the U.S., performance was also robust. International sales increased 10.8%, supported by strong results from Flipkart in India, Sam’s Club operations in China and the Walmex business in Mexico. Taken together, the combination of higher guidance, rapid ecommerce growth, AI adoption and international expansion reinforces Walmart’s position as one of the main winners in a still challenging retail environment.
