Walmart's US Comp Sales Up 4.5%: Transaction Growth to Last in 2026?

Core Insights - Walmart Inc.'s U.S. segment reported a 4.5% increase in comp sales for Q3 of fiscal 2026, driven by higher transactions and unit volumes, indicating strong consumer engagement across various channels [1][8] - The company experienced consistent comp sales growth throughout the quarter, reflecting stable demand rather than seasonal fluctuations, with broad-based share gains across different income groups [2] Performance Metrics - Traffic growth was observed both in-store and online, highlighting the effectiveness of Walmart's omnichannel strategy [1][8] - The company noted that faster fulfillment options, including a growing share of digital orders delivered within three hours, significantly contributed to transaction increases [3] Strategic Focus - Walmart expressed confidence in the sustainability of transaction growth drivers as it enters fiscal 2026, emphasizing a commitment to value, disciplined pricing, and enhanced fulfillment speed [4] - The company aims to maintain customer engagement across various income levels, positioning itself well for continued comp sales growth [4] Competitive Landscape - Over the past year, Walmart's shares have increased by 22.4%, outperforming the industry average growth of 21.5%, while competitors Costco and Target saw declines of 12.5% and 25.9%, respectively [5] - Walmart's forward 12-month price-to-earnings ratio is 40.32, higher than the industry average of 36.5, indicating a premium valuation compared to Target but a discount relative to Costco [6] Financial Outlook - The Zacks Consensus Estimate projects year-over-year growth of 4.5% in sales and 4.8% in earnings per share for Walmart's current financial year [10]