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Walmart Stock Soars: Value King Reinvents Itself
20 Dec
Summary
- Walmart's stock surged nearly 30% year-to-date due to consistent sales growth and improved profitability.
- E-commerce sales grew over 20% for seven consecutive quarters, now a profitable engine.
- Walmart's advertising business saw over 30% U.S. growth, boosting operating income.
Walmart's stock has experienced a remarkable nearly 30% surge year-to-date, driven by sustained growth in sales and enhanced profitability. This performance is a result of consistent execution across its core retail operations and newer ventures. The company reported significant revenue increases, with Q3 FY26 revenue reaching $179.5 billion, a 5.8% rise year-over-year.
Key to this momentum is the impressive performance of its e-commerce segment, which has seen over 20% growth for seven consecutive quarters and is now profitable in the U.S. Walmart's advertising business, Walmart Connect, also showed robust growth, with U.S. revenue up 31% in Q2 and 33% in Q3. Membership income, bolstered by Walmart+ sign-ups, is also contributing to recurring revenue.
This strategic expansion into higher-margin areas like advertising and memberships, combined with disciplined cost management, has improved overall margins even amid rising costs. Shoppers, seeking value amidst inflation, are increasingly turning to Walmart for essentials, further boosting in-store and online sales. Management anticipates continued sales growth of approximately 5% for the full year.
