01—Abstract
Summary
Summary of the 8-K filed November 20, 2025. Cited figures are marked; the original filing is the authoritative source.
Walmart reported fiscal Q3 2026 results (quarter ended October 31, 2025) showing solid top-line momentum and a raised full-year outlook, although reported GAAP operating income was essentially flat.
Revenue rose 5.8% to $179.5 billiona (6.0% in constant currency), and global eCommerce grew 27%, with the global advertising business up 53% including VIZIO. Reported operating income declined 0.2% to $6.7 billion, weighed down by a non-cash share-based compensation charge of roughly $0.7 billion at PhonePe ahead of a potential IPO. Adjusted operating income rose 8.0% in constant currency, and GAAP EPS of $0.77 (boosted by a $0.20 gain on equity investments) compares with adjusted EPS of $0.62, up 6.9%.
Management raised its FY26 guidance: constant-currency net sales growth is now expected at 4.8% to 5.1% (up from 3.75% to 4.75%), adjusted operating income growth at 4.8% to 5.5%, and adjusted EPS at $2.58 to $2.63b. Cash generation improved, with operating cash flow of $27.5 billion for the nine months (up $4.5 billion) and free cash flow of $8.8 billion (up $2.6 billion), though capital expenditures are rising toward about 3.5% of net sales. Walmart U.S. comp sales grew 4.5%, with transactions and average ticket both contributing.
Management also noted that Flipkart's Big Billion Days timing will weigh on fourth-quarter International growth. Separately, Walmart disclosed it will transfer its common stock and nine bond listings from the NYSE to Nasdaq, keeping the WMT ticker. Trading is expected to end on the NYSE at the close on December 8, 2025 and begin on Nasdaq on December 9, 2025.
The move is administrative and does not affect the company's operations or financial results. Investors should note that the headline GAAP EPS is inflated by investment gains, so the adjusted figures better reflect core earnings.
02—Key points
Key Highlights
- Revenue of $179.5B, up 5.8% (6.0% constant currency); global eCommerce up 27%, and the global advertising business up 53% including VIZIO.
- Reported operating income fell 0.2% to $6.7B, driven by a ~$0.7B non-cash PhonePe share-based compensation charge; adjusted operating income rose 8.0% in constant currency.
- GAAP EPS of $0.77 included a $0.20 gain on equity investments; adjusted EPS was $0.62, up 6.9% year over year.
- FY26 guidance raised: constant-currency net sales growth of 4.8%–5.1%, adjusted operating income growth of 4.8%–5.5%, and adjusted EPS of $2.58–$2.63.
- Walmart U.S. comp sales rose 4.5%, with eCommerce contributing about 440 bps; operating income grew 6.3% and inventory rose only 2.6%.
- Nine-month operating cash flow of $27.5B (up $4.5B) and free cash flow of $8.8B (up $2.6B); $5.1B remains on the $20B buyback authorization.
- Common stock and nine note listings move from NYSE to Nasdaq, keeping the WMT ticker; trading on Nasdaq begins December 9, 2025.
03—Questions
Frequently Asked Questions
Why did reported operating income decline despite strong sales growth?
Reported operating income fell 0.2% to $6.7 billion, mainly because of a non-cash share-based compensation charge of about $0.7 billion at PhonePe, Walmart's India fintech subsidiary, tied to modified plans ahead of a potential IPO. Excluding this charge and a legal settlement reversal, adjusted operating income rose 8.0% in constant currency.
Why is GAAP EPS ($0.77) so much higher than adjusted EPS ($0.62)?
Walmart's reported results include a $0.20 per share after-tax gain from its equity and other investments, which is excluded from adjusted EPS. The adjusted figure also excludes a $0.02 legal settlement benefit and adds back a $0.07 PhonePe compensation charge. Investors should focus on adjusted EPS for core earnings trends.
How much did Walmart raise its FY26 outlook?
Constant-currency net sales growth guidance rose to 4.8%–5.1% from 3.75%–4.75%, adjusted operating income growth is now 4.8%–5.5% (from unchanged guidance of 3.5%–5.5% originally), and adjusted EPS is $2.58–$2.63 versus $2.52–$2.62 previously. The effective tax rate is now at the mid-to-low end of the 23.5%–24.5% range, and capital expenditures are expected at about 3.5% of net sales.
Does the move to Nasdaq affect Walmart's business or shareholders?
No operational or financial impact is disclosed. Common stock and nine bond series keep their current trading symbols, with trading ending on the NYSE on December 8, 2025 and starting on Nasdaq on December 9, 2025. Shareholders do not need to take any action.
What should investors watch in the coming quarter?
Management said the timing of Flipkart's Big Billion Days event pulled sales into Q3 and will weigh on Q4 International growth. Investors should also watch the PhonePe IPO process, further capital spending (which is pressuring ROI, now 14.8%), and whether eCommerce and advertising momentum sustains the raised guidance.
04—Continue