Walmart's E-commerce Sales Jump 27%: Is Digital Now a Core Driver?

Core Insights - Walmart Inc. (WMT) achieved significant growth in digital sales, with global e-commerce increasing by 27% in Q3 of fiscal 2026, and U.S. e-commerce sales rising by 28%, contributing approximately 440 basis points to comparable sales [1][9] Digital Performance - The growth in e-commerce reflects strong demand and effective execution, with store-fulfilled delivery increasing nearly 70% and about 35% of these orders delivered in under three hours, enhancing customer experience [2] - Walmart's digital strategy has shifted e-commerce from a secondary growth lever to a core driver of sales mix, customer engagement, and operational efficiency [4] Automation and Efficiency - Over 60% of Walmart's stores now receive freight from automated distribution centers, and more than half of e-commerce fulfillment volume is processed through automated systems, leading to improved productivity and lower service costs [3] Financial Performance - Walmart reported improved e-commerce economics and reduced international e-commerce losses, with advertising and membership income contributing to about one-third of consolidated adjusted operating income in Q3 [4] - Walmart's stock has increased by 23.4% year-to-date, outperforming the industry growth of 21.8% [7] Valuation Metrics - Walmart's forward price-to-earnings ratio stands at 38.66, which is higher than the industry average of 34.93 [11] - The Zacks Consensus Estimate indicates year-over-year earnings growth of 4.8% for fiscal 2026 and 11.6% for fiscal 2027 [14]