Walmart Q3 Revenue Up 5.8% to $179.5B, EPS Beats; FY26 EPS Guided $2.58-2.63
Walmart reported Q3 revenue of $179.5 billion, up 5.8% year-over-year, with adjusted EPS of $0.62 beating consensus by $0.02. The retailer guided FY26 EPS to $2.58-2.63 and noted 27% e-commerce growth alongside a 33% surge in Walmart Connect ad revenue.
1. Omnichannel Revenue Expansion
Walmart’s total consolidated revenue reached $179.5 billion in its most recent quarter, representing a 5.8 percent year-over-year increase. More than 50 percent of that revenue is generated by its grocery and essentials business, which sold over $276 billion in food products in fiscal 2025 through its Supercenters, Neighborhood Markets and Sam’s Club locations. The company’s same-day pickup and delivery services grew by 35 percent year-over-year, leveraging its 4,700 U.S. stores as fulfillment hubs and ensuring that 90 percent of the population lives within a 10-mile radius of a Walmart store.
2. Double-Digit E-Commerce Growth
In the latest quarter, Walmart’s e-commerce segment delivered 27 percent growth compared to the prior year, outpacing many pure-play online retailers. Walmart has invested heavily in automation and robotics across its distribution network, reducing delivery times by as much as 20 percent and cutting logistics costs. Its digital advertising unit, Walmart Connect, generated U.S. revenue growth of 33 percent, turning the platform into a multibillion-dollar high-margin business that now accounts for more than 2 percent of total operating income.
3. Financial Strength and Shareholder Returns
Walmart has raised its dividend for 54 consecutive years, making it one of the longest-running Dividend Kings. Its forward dividend yield stands at approximately 0.8 percent, supported by robust free cash flow, which climbed to $8.8 billion in the last twelve months. The company maintains a conservative debt-to-equity ratio of 0.39 and holds $20 billion in available liquidity, positioning it to pursue strategic investments without sacrificing financial flexibility.
4. International Growth and New Ventures
Walmart’s international segment posted an 11.4 percent increase in net sales and a 16.9 percent rise in adjusted operating income, driven by strong performance in China and India’s Flipkart business. The retailer now operates in 19 countries outside the U.S., with more than 3,000 stores in Mexico and over 400 in Canada. The company is also piloting healthcare clinics in select Texas markets and expanding financial services offerings under its OnePay platform, which has already attracted 3 million active users.