Core Insights - Walmart Inc. (WMT) shares increased by 6.5% following strong third-quarter results and an optimistic fiscal 2026 outlook, showcasing robust revenue growth, e-commerce adoption, and expansion in membership and advertising [1][9]. Financial Performance - In Q3 of fiscal 2026, Walmart's total revenues rose by 5.8% to $179.5 billion, with a 6% increase in constant currency, driven by strong performance across all segments [6]. - Global e-commerce sales surged by 27%, supported by marketplace strength and gains in store-fulfilled pickup and delivery [6]. - Membership income increased by 16.7%, while global advertising business accelerated by 53% [6]. - Adjusted earnings per share (EPS) grew by 6.9% to 62 cents, and adjusted operating income reached $7.2 billion, reflecting an 8% growth in constant currency [7]. Segment Performance - Walmart U.S. reported a 5.1% net sales growth and 4.5% comparable sales growth (excluding fuel), with e-commerce up by 28% [8]. - International net sales increased by 10.8% (or 11.4% in constant currency), with significant contributions from Flipkart, China, and Walmex [8]. - Sam's Club achieved a 4.4% net sales growth (excluding fuel) and 22% e-commerce growth, alongside a 7.1% increase in membership income [8]. Cash Flow and Capital Management - Year to date, Walmart generated $27.5 billion in operating cash flow, driven by improved profitability and lower cash taxes, resulting in $8.8 billion in free cash flow [10]. - The company returned significant capital to shareholders, including $7 billion in share repurchases [10]. Future Outlook - Walmart anticipates net sales growth of 4.8-5.1% (at constant currency) and adjusted EPS of $2.58-$2.63 for fiscal 2026, reflecting management's confidence in its omnichannel model and digital scale [11]. Valuation Considerations - Walmart currently trades at a forward 12-month P/E of 37.44, above its one-year median of 35.68 and higher than the industry average of 32.17, indicating that much of the recent strength has been priced in [12]. - The elevated valuation suggests limited upside potential, prompting consideration for a more favorable entry point [13].