Walmart Crushes Earnings as Rivals Reel from Consumer Slump

Walmart reported fiscal 2025 third-quarter revenue of $169.59 billion, a 5.5% increase from $160.8 billion a year earlier, beating Wall Street's high-end projections.[1] The Bentonville, Arkansas-based giant posted operating income of $6.71 billion, up 8.2% year-over-year, with U.S. operations leading the charge at $114.88 billion in net sales, a 5% rise.[1] Comparable sales excluding fuel grew 5.3%, driven by a 3.1% increase in customer transactions and 2.1% higher average ticket sizes.[1] Grocery sales propelled the performance, with mid-single-digit comparable growth across transactions, units, and market share, led by strong pantry products and the highest unit volume increase in four years.[1] Health and wellness categories saw mid-teens growth, boosted by branded pharmacy scripts including GLP-1 drugs.[1] E-commerce sales jumped 27% globally, contributing 290 basis points to U.S. comp sales growth, up from 170 basis points last year, while advertising revenue rose 28% and membership income climbed 22%.[1] Walmart International net sales hit $30.28 billion, up 8% or 12.4% in constant currency, with operating income increasing 8.2% to $1.2 billion.[1] Executives highlighted 7,400 active price rollbacks, mostly in groceries, and noted tariffs had less impact than expected, with beef as the main pressure point.[2][3] Incoming CEO John Furner, set to succeed Doug McMillon, emphasized the company's shift toward technology and advertising, including a 53% ad revenue surge aided by the Vizio acquisition.[2] Buoyed by the results, Walmart raised its full-year guidance, now forecasting adjusted EPS of $2.42 to $2.47, up from $2.35 to $2.43, and net sales growth of 4.8% to 5.1%, exceeding prior estimates.[1] U.S. same-store sales rose 4.5%, topping analyst expectations, in a sector marked by uncertainty.[3] GlobalData's Neil Saunders called Walmart's tone 'extremely upbeat' amid broader retail struggles.[3] The standout quarter contrasts with softening consumer trends hitting peers, as Walmart attracts higher-income households over $100,000 annually and maintains grocery dominance despite 21% price surges since 2021.[4] With 7,200 U.S. rollbacks in recent periods, including a 35% food increase, the retailer continues luring price-sensitive shoppers.[4]