Walmart raises profit expectations as more Americans hunt deals in sluggish economy

Walmart delivered another standout quarter, posting strong sales and profits that exceeded Wall Street expectations as it continues to attract a diverse customer base ranging from budget-conscious shoppers to more affluent consumers who have grown increasingly cautious about the economy.

While many retailers are scaling back projections, the nation’s largest retailer raised its financial outlook on Thursday following its robust third-quarter performance, positioning itself for a successful holiday shopping season.

The Bentonville, Arkansas-based retail giant also announced plans to transfer its common stock listing from the New York Stock Exchange to the tech-focused Nasdaq Global Select Market. The company expects to begin trading under the same ticker symbol “WMT” on December 9.

CEO Doug McMillon, who recently surprised investors with plans to retire early next year, has transformed Walmart into a technology-powered retail powerhouse, heavily investing in automation and artificial intelligence. Since becoming chief executive in 2014, McMillon has led the company through a period of robust growth, successfully competing with online giant Amazon.

John Furner, 51, currently heading Walmart’s U.S. operations, will take over as CEO on February 1, the day after McMillon’s retirement becomes effective. The leadership transition comes at a challenging time for American businesses, which have been navigating economic uncertainties as President Donald Trump prepares to impose wide-ranging tariffs on imports and pursue immigration policies that could potentially reduce the available workforce.

As a retail giant serving over 90% of U.S. households and attracting more than 150 million customers to its stores and website weekly, Walmart’s performance serves as a key indicator of broader consumer spending trends.

“We’re gaining market share, improving delivery speed, and managing inventory well,” McMillon said in prepared remarks. “We’re well-positioned for a strong finish to the year and beyond that.”

Comparable sales at U.S. Walmart stores—combining established physical stores and online channels—increased by 4.5% in the third quarter, nearly matching the previous quarter’s 4.6% growth. The company reported market share gains across all income brackets, with the most significant increases coming from households earning over $100,000 annually.

Walmart Chief Financial Officer John David Rainey noted that while middle-income shopper spending remained steady, lower-income consumers pulled back in the latter part of the quarter. The temporary lapse in Supplemental Nutrition Assistance Program benefits due to the government shutdown negatively impacted business, though sales eventually rebounded.

“There’s always a difference between how the upper income performs versus the lower income,” Rainey explained. “But that gap has widened more recently, where you can see that low income consumers are stretching their dollars. They’re not buying some of the discretionary things.”

In response to these spending patterns, Walmart has increased its temporary price discounts to 7,000 items throughout its stores.

Meanwhile, other major retailers have reported mixed results. Target’s third-quarter profit declined as the company struggled to attract inflation-weary shoppers, and it expects sales challenges to continue through the holiday season. Home Depot reported mixed results, citing fewer severe storms, consumer anxiety, and a sluggish housing market. The home improvement retailer lowered its fiscal 2025 adjusted earnings forecast while raising its sales growth expectations. TJX Companies, operator of HomeGoods and T.J. Maxx, upgraded its outlook after strong performance, as value-seeking consumers flocked to its discount offerings.

Walmart’s third-quarter profits rose to $6.14 billion, or 77 cents per share, for the period ending October 31. Adjusted earnings were 66 cents per share, exceeding analyst expectations by 6 cents, according to FactSet. This represents a substantial increase from the $4.58 billion, or 57 cents per share, earned in the same period last year.

Overall sales increased nearly 6% to $179.5 billion, also surpassing analyst projections. Global e-commerce sales jumped 27%, following increases of 25% and 22% in the second and first quarters, respectively.

Despite facing higher costs due to tariffs, Walmart has managed the impact by adjusting its product mix and absorbing some expenses. The company reported that prices on its goods rose an average of 1.3% in the latest quarter, which exceeds the overall inflation rate but remains relatively moderate. The most significant price increases were seen in electronics, toys, and seasonal items, which rose in the high single digits.

Following its strong performance, Walmart now expects adjusted annual profits between $2.58 and $2.63 per share, up from its August projection of $2.52 to $2.62 per share. The company forecasts annual sales growth between 4.8% and 5.1%, an increase from its earlier estimate of 3.75% to 4.75%.

Walmart’s shares rose $6.23, or more than 6%, to $106.85 in late-morning trading following the announcement.