Key Highlights
- Walmart recorded a remarkable 27% growth in global e-commerce during Q3, with U.S. digital sales rising 28%, substantially enhancing comparable sales.
- Increased consumer demand and expedited store-fulfilled delivery, registering nearly 70% growth, fueled this digital momentum.
- Automation now underpins the majority of freight and fulfillment operations, optimizing productivity and profit margins.
Walmart Inc. (WMT Quick QuoteWMT – Free Report) achieved an exceptional performance in its digital segment, boasting a 27% increase in global e-commerce during the third quarter of fiscal 2026, with each segment exceeding 20% growth.
In the United States, e-commerce sales surged 28%, contributing approximately 440 basis points to comparable sales. This trend underscores the seamless integration of digital channels with in-store performance, refuting the notion of e-commerce as a mere ancillary operation.
This impressive momentum is largely attributable to both heightened consumer demand and strategic execution. Store-fulfilled deliveries soared by nearly 70%, with approximately 35% of these orders arriving within a remarkable three-hour window.
Such rapid delivery times are increasingly establishing themselves as a standard customer expectation across markets, as the company amplifies its pickup and delivery capabilities while enhancing marketplace activity.
At the core of this digital ascension lies a robust automated infrastructure. Over 60% of Walmart’s stores now receive freight from automated distribution centers, while more than half of the e-commerce fulfillment center volume is processed through automated systems.
These advancements have catalyzed a significant enhancement in unit productivity and reduced service costs, thus fostering healthier margins in the digital realm.
Additionally, Walmart reported improvements in e-commerce economics and a reduction in international e-commerce losses, alongside the burgeoning roles of advertising and membership income. Together, these factors accounted for roughly one-third of consolidated adjusted operating income in the third quarter.
Collectively, Walmart’s third-quarter performance signifies a pivotal transformation, as e-commerce has evolved from a secondary growth avenue to a fundamental engine driving sales, customer engagement, and operational efficiency.
Target and Costco: Ascending Digital Footprints
Target (TGT Quick QuoteTGT – Free Report) reported a 2.4% year-over-year growth in digital comparable sales during the third quarter of fiscal 2025, primarily driven by an over 35% increase in same-day delivery facilitated by Target Circle 360.
Non-merchandise revenues, which encompass advertising, membership, and marketplace income, escalated nearly 18%, signifying a steadily strengthening digital mix at TGT and an uptick in contributions from higher-margin services.
Costco (COST Quick QuoteCOST – Free Report) continues to experience robust e-commerce momentum. For the fourth quarter of fiscal 2025, Costco’s comparable e-commerce sales surged 13.6% year-over-year, culminating in a full fiscal year increase of 15.6%.
The retailer also reported overall comparable sales growth of 5.7% in the fourth quarter, indicating that digital strength is enhancing warehouse-based sales volume.
WMT’s Stock Performance, Valuation & Projections
Walmart’s shares have appreciated by 23.4% year-to-date, outpacing the industry’s growth of 21.8%.
WMT Stock Performance in Relation to Industry
From a valuation perspective, WMT trades at a forward price-to-earnings ratio of 38.66, exceeding the industry average of 34.93.
WMT’s Valuation Compared to Industry
The Zacks Consensus Estimate for WMT’s earnings in fiscal 2026 and 2027 reflects anticipated year-over-year growth of 4.8% and 11.6%, respectively.
Currently, Walmart holds a Zacks Rank #3 (Hold). The complete roster of today’s Zacks #1 Rank (Strong Buy) stocks can be accessed here.
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