Walmart Reports $169.6B Revenue in Q3 FY25, Raising Full-Year Guidance
Walmart Q3 FY25 earnings reached a remarkable $169.6 billion, marking a 5.5% growth from the same period last year. The company also reported an 8.2% rise in operating income, highlighting a focus on operational efficiency and strategic growth. Walmart Inc., the retail leader, showcased strong performance across its U.S., International, and Sam’s Club segments, leveraging digital transformation and eCommerce penetration.
Quarterly Highlights
The Bentonville-based retail giant revealed robust growth in key areas. Walmart U.S. delivered a 5.3% comparable sales increase, excluding fuel, driven by strong transaction growth and higher average ticket sizes. General merchandise and food categories showed steady demand. eCommerce, a key contributor to growth, rose by 27% globally. Store-fulfilled delivery and marketplace sales led this digital sales surge, reinforcing Walmart’s omnichannel strategy.
In the international segment, Walmart achieved an 8% net sales growth, driven by standout performances in markets like Mexico, China, and India through Flipkart. Sam’s Club U.S. saw notable sales increases, with a 7% comparable sales gain excluding fuel. Membership income rose by double digits, reflecting customer loyalty and consistent engagement.
Rising Profit Margins and Strategic Investments
Gross profit margins improved by 21 basis points, driven by strong inventory management and growing membership income. Walmart Connect, the company’s advertising business, grew by 26%, further diversifying revenue streams. Adjusted EPS stood at $0.58, excluding minor equity losses, reinforcing Walmart’s fiscal stability.
The company maintained healthy inventory levels, which declined by 1% globally. Walmart’s cash flow also improved, with $22.9 billion in operating cash flow year-to-date, up $3.9 billion from the previous year. Free cash flow reached $6.2 billion, showcasing effective cost management and operational efficiency.
CEO Statement: A Strong Quarter with Optimistic Outlook
Walmart CEO Doug McMillon attributed the results to the hard work of associates and the company’s strategic focus on value and convenience. “In the U.S., in-store volumes grew, while pickup and delivery volumes surged even faster. Our teams continue to transform our business and delight customers,” he stated.
Fiscal Year 2025 Guidance Raised
With strong Q3 results, Walmart raised its FY25 guidance. The company now expects net sales growth of 4.8% to 5.1% in constant currency. Adjusted operating income is forecasted to grow by 8.5% to 9.25%. This reflects Walmart’s confidence in sustaining momentum through innovative retail strategies and increased digital engagement.
eCommerce: A Key Driver of Growth
eCommerce growth remained a standout achievement. Global eCommerce sales rose by 27%, fueled by store-fulfilled services and marketplace expansion. In the U.S., online grocery pickup and delivery services outperformed expectations. Flipkart, Walmart’s flagship in India, contributed significantly, benefiting from the Big Billion Days sales event. Walmart Connect’s 26% growth also highlighted the effectiveness of its digital advertising platform.
Sustainability and Operational Efficiency
Walmart continues to lead in sustainable practices. The company reduced operating expenses as a percentage of sales by leveraging efficient supply chain operations. Inventory decline and a focus on local sourcing enhanced in-stock levels, keeping operations smooth across all markets.
Key Financial Metrics
- Consolidated revenue: $169.6 billion, up 5.5%
- Operating income: $6.7 billion, up 8.2%
- eCommerce growth: 27% globally
- Adjusted EPS: $0.58
Investor Confidence and Future Prospects
Industry professionals view these results as a sign of Walmart’s adaptability and resilience. Investors remain optimistic about the company’s ability to navigate market challenges while driving growth. Walmart’s focus on customer satisfaction, operational efficiency, and digital innovation positions it as a retail leader.
Conclusion
Walmart Q3 FY25 earnings highlight the company’s robust growth strategy and operational excellence. With $169.6 billion in revenue and a positive fiscal outlook, Walmart continues to lead the retail sector. Its strategic investments in eCommerce, sustainability, and customer engagement are expected to drive further success.
