Walmart's strong quarter shows Americans are still spending

Core Insights - Walmart Inc. raised its outlook after exceeding Wall Street expectations, driven by strong e-commerce performance and increased sales across various categories despite a cautious consumer environment [1] Financial Performance - Walmart reported revenue of $179.5 billion for the three-month period ending on October 31, surpassing Wall Street's projection of $177 billion and reflecting a 6% increase year-over-year [1] - Total sales for Walmart U.S. increased by 5.1% to $120.7 billion, with online sales rising by 28%, marking the seventh consecutive quarter of over 20% e-commerce growth [2] - Comparable store sales in the U.S. rose by 4.5%, driven by more shoppers and larger purchases, with transactions up 1.8% and the average spend per trip increasing by 2.7% [3] Market Trends - The company is gaining market share among higher-income consumers seeking value, a trend observed over several quarters [5] - Sales in health, grocery, and general merchandise categories increased, with general merchandise sales rising despite a general decline in discretionary spending [5] Future Outlook - For fiscal 2026, Walmart expects net sales growth between 4.8% and 5.1%, an increase from the previous forecast of 3.75% to 4.75% [6] - Adjusted operating income is anticipated to rise by 4.8% to 5.5%, compared to the earlier range of 3.5% to 5.5%, and adjusted earnings per share are projected to be between $2.58 and $2.63, up from $2.52 to $2.58 [8] Corporate Developments - Walmart announced the transfer of its common stock listing from the New York Stock Exchange to Nasdaq, effective December 9, under the ticker symbol "WMT" [9] - The CFO stated that this move aligns with the company's tech-driven strategy, emphasizing the integration of automation and AI to enhance customer experiences and operational efficiency [12]