Is This Soon-to-Be $1 Trillion Stock a Buy Now?

Core Insights - Walmart is transitioning from a focus on stability to a growth-oriented strategy, leveraging its extensive retail network and digital platforms to enhance its market position [1][2] Financial Performance - Walmart's market valuation is currently at $915 billion, approaching the $1 trillion mark, with expectations for significant growth by 2026 [2] - In Q3, consolidated revenue rose by over 6%, exceeding $10 billion, while adjusted operating income improved by 8%, indicating strong financial health [3] - The company has raised its full-year sales and operating income estimates, suggesting confidence in maintaining growth momentum into 2026 [3] E-commerce Growth - E-commerce is a critical growth driver for Walmart, with global sales increasing by 27%, marking the eighth consecutive quarter of growth above 20% [4] - U.S. e-commerce growth was significantly supported by pickup, delivery, and advertising, contributing to 28% of the overall e-commerce growth [4] - Comparable sales growth in Walmart U.S. was reported at 4.5%, driven by increased customer traffic both in-store and online [4] Membership and Advertising Revenue - Membership income surged by 17%, with Walmart+ in the U.S. showing double-digit growth, highlighting the importance of recurring revenue streams [5] - The company achieved record net member additions in the quarter, emphasizing the growing significance of higher-margin income sources [5] - Global advertising income increased by 53%, with Walmart Connect in the U.S. gaining 33%, indicating a diversification of revenue streams [5] Profitability - Higher-margin income streams are helping to alleviate pressure from merchandise mix, supporting Walmart's goal of growing earnings faster than sales [6] - Adjusted profits rose by 6.9% to $0.62 per share, reflecting improved profitability [6]