Walmart raises profit expectations as more Americans hunt deals in
sluggish economy
[November 21, 2025] By
ANNE D'INNOCENZIO
NEW YORK (AP) — Walmart delivered another standout quarter, posting
strong sales and profits that blew past Wall Street expectations as it
wins over a broad base of shoppers including cash-strapped Americans and
the well-heeled, who have grown increasing anxious about the economy.
While other retailers dial back projections, the nation’s largest
retailer raised its financial outlook Thursday after its strong third
quarter, setting itself up for a strong holiday shopping season.
Walmart Inc., based in Bentonville, Arkansas, also said Thursday that it
will be transferring the listing of its common stock to the tech-heavy
Nasdaq from the New York Stock Exchange. It expects its common stock to
begin trading on the Nasdaq Global Select Market on Dec. 9, under the
same ticker symbol “WMT.”
CEO Doug McMillon, who surprised investors last week with plans to
retire early next year, has reshaped Walmart itself as tech-powered
retail giant that has leaned heavily into automation and artificial
intelligence.
McMillon spearheaded a period of robust sales growth since becoming
chief executive in 2014, going toe-to-toe with online behemoth Amazon.
John Furner, 51, the head of Walmart’s U.S. operations, will take over
on Feb. 1, the day after McMillon’s retirement becomes effective.
The leadership change arrives at a challenging time for U.S. companies
that have spent months navigating an uncertain economic environment as
President Donald Trump imposes wide-ranging tariffs on imports and
pursues an immigration crackdown that threatens to shrink the number of
workers available in America.
Walmart’s performance serves as a barometer of consumer spending given
its size and vast customer base. The company maintains that 90% of U.S.
households rely on Walmart for a range of products, and more than 150
million customers shop on its website or in its stores every week.
“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 — those from sales from
established physical stores and online channels — rose 4.5% in the third
quarter, just shy of last quarter’s 4.6%.
Walmart said it's gaining market share across all income cohorts, with
the biggest increases coming from households with annual income over
$100,000.
Walmart Chief Financial Officer John David Rainey told The Associated
Press during a phone call Thursday that spending from middle income
shoppers remained steady, but there was a pullback from lower-income
shoppers in the back half of the quarter. The lapse in benefits from
Supplemental Nutrition Assistance Program because of the government
shutdown was a drag on business, but sales rebounded, he said.
“There's always a difference between how the upper income performs
versus the lower income," he said. ”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."
[to top of second column] |
Clouds pass over the Walmart store, Thursday, Aug. 14, 2025, in
Manchester, N.H. (AP Photo/Charles Krupa, File)
 In response, the company has ramped
up the number of rollbacks — temporary price discounts — to 7,000.
Meanwhile, other retailers have reported mixed results.
Target's third-quarter profit tumbled as the retailer struggled to
lure shoppers that are being pressed by stubbornly high inflation.
The Minneapolis company said Wednesday that it expects its sales
slump to extend through the critical holiday shopping season.
Home Depot, which reported its third-quarter results on Tuesday, was
mixed with fewer violent storms reaching shore, more anxiety among
U.S. consumers and a housing market that is in a deep funk. The
company lowered its fiscal 2025 adjusted earnings forecast but
raised its expectations for sales growth.
TJX, which operates HomeGoods and TJ Maxx, upgraded its full-year
outlook and turned in higher profit and sales during the recent
quarter as it continues to lure shoppers looking for deals on trendy
items.
At Walmart, third-quarter profits rose to $6.14 billion, or 77 cents
per share, in the quarter ended Oct. 31. Adjusted earnings were 66
cents, or 6 cents better than Wall Street had expected, according to
a poll by FactSet. That is far greater than the $4.58 billion, or 57
cents per share, the company earned in the same period last year.
Sales rose nearly 6% to $179.5 billion, also exceeding the
expectations of most analysts.
Global e-commerce sales rose 27%. That follows a 25% jump in the
second quarter and 22% growth in the first quarter.
Walmart said that it's been able to manage higher costs from Trump's
tariffs by changing the mix of products and absorbing some of the
costs. The company said prices on Walmart goods on average rose 1.3%
for the latest quarter. That's higher than overall inflation, which
rose 3% in September,
Prices for items like electronics, toys and seasonal items rose the
most, roughly increasing in the high single digits, Walmart said.
The company said that it now expects adjusted profits this year to
be in the range of $2.58 to $2.63 per share, up from guidance in
August of between $2.52 and $2.62 per share.
Walmart expects sales for the year to be up anywhere from 4.8% to
5.1%. That’s up from an earlier estimated range of 3.75% to 4.75%.
Analysts were predicting $2.61 per share, according to FactSet
analysts.
Walmart's shares rose $6.23, or more than 6%, to $106.85 in
late-morning trading.
All contents © copyright 2025 Associated Press. All rights reserved |
