There is a lot going on at the nation’s largest retailer, Walmart (NYSE:WMT).
For starters, Walmart posted strong Q3 earnings on Thursday, beating revenue and earnings estimates. Given tariffs, inflation, lower consumer confidence, and labor market struggles, market watchers were jittery about what Q3 would bring.
The results not only beat expectations, but Walmart also raised its outlook for the full fiscal year. The company also tapped a new CEO and is changing from the NYSE to the Nasdaq.
- Revenue: $179.5B, up 5.8% year-over-year. This beat estimates of $177.5B.
- Operating income: $6.7B, down 0.2% year-over-year, due to a non-cash compensation charge.
- Adjusted operating earnings: $7.2B, up 8% year-over-year.
- Earnings per share: 77 cents EPS, up 35% year-over-year.
- Adjusted EPS: 62 cents EPS, up 6.9%, excluding a 20 cent per share investment gain. This beat estimates of 60 cents EPS.
The other key metric, same-store sales, rose 4.5% in the quarter.
Walmart’s gains are also fueled by strength in its growing e-commerce business, along with other non-traditional channels. Global e-commerce sales increased 27% in the quarter, led by store-fulfilled pickup & delivery and marketplace.
Also, the global advertising business saw revenue climb 53%, which incorporates advertising through its Vizio TV brand and Walmart Connect, its in-house advertising platform. Further, the company saw a 16.7% revenue gain in its Walmart Plus membership business.
Walmart raises its guidance
The big box retailer also raised its guidance for the full fiscal year, now calling for net sales gains of 4.8% to 5.1% for the year. That’s up from the previous call of 3.75% to 4.75%. Adjusted EPS guidance was also raised to a range of $2.58 to $2.63 per share, up from the previous $2.52 to $2.62 per share.
“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,” said president and CEO Doug McMillon.
Just last week, McMillion announced that he is retiring at the end of the fiscal year on January 31, 2026. John Furner, the current president and CEO of Walmart US, will take over for McMillon as president and CEO of the company. Furner has been with Walmart for 32 years and started out as an hourly employee.
“It’s been an honor to serve them as CEO, and I’m as excited about the future of this company as I’ve ever been. John Furner is a fantastic leader with a proven track record,” McMillon said.
Investors are not disappointed with the move, as it signals a smooth transition and a continuation of the path of digital innovation that it is on.
Walmart stock moves to Nasdaq
Walmart stock has been trading on the NYSE since 1972, but as of December 9, it will move over to the more tech-focused Nasdaq exchange. It will trade on the Nasdaq Global Select Market starting on December 9 under its current WMT ticker.
Walmart officials said the change reflects its “technology-forward approach” and its aim of redefining their industry through innovation.
Moving to Nasdaq aligns with the people-led, tech-powered approach to our long-term strategy,” said John David Rainey, Walmart chief financial officer.
Walmart stock is up 18% YTD to $107 per share. It has a median price target of $115 per share, which would be 8% growth. It has a P/E ratio of 37 and a forward P/E of 33.