Core Viewpoint - Walmart's CFO John David Rainey highlighted the widening gap between those who can afford daily necessities and those who cannot, reaching the highest level in nearly a decade as of October's wage growth data [1] Financial Performance - In Q3, Walmart reported revenue of $179.5 billion, a 5.8% year-over-year increase, surpassing the expected $177.6 billion; adjusted EPS was $0.62, slightly above the anticipated $0.60 [2] - Walmart raised its full-year guidance, expecting net sales growth to increase from a previous range of 3.75%-4.75% to 4.8%-5.1%; adjusted EPS forecast was revised from $2.52-$2.62 to $2.58-$2.63 [2] Consumer Behavior - Rainey noted that many shoppers are shifting towards cheaper products, extending their purchasing cycles, and focusing more on value due to ongoing financial challenges, with food prices still approximately 25% higher than pre-pandemic levels [1] - The company experienced a strong quarter with U.S. same-store sales growth of 4.5%, driven by grocery, health products, and general merchandise; transaction frequency increased by 1.8%, and average basket size grew by 2.7% [1] Cost Management - Despite strong performance, Walmart faces challenges with high tariff-related costs and is cautiously managing the impact of these costs on consumers, particularly for imported goods like bananas and avocados [2] - Rainey acknowledged the limitations of Walmart's "Everyday Low Price" strategy amid rising costs from tariffs, supply chain shifts, and labor expenses, indicating a delicate balance between protecting consumer interests and maintaining profit margins [2] Competitive Strategy - Walmart's pricing strategy remains competitive, exemplified by a $128 Vizio TV, which attracts customers while relying on long-term monetization through advertising revenue from its operating system [3] - Rainey emphasized Walmart's dual focus on providing value and convenience, suggesting that the historical belief in a trade-off between the two is a misconception, as Walmart is proving it can deliver both effectively [3]