What’s going on here?
Walmart is leaning into e-commerce, third-party sellers, and online advertising, helping the US retail giant post stronger profits and outpace Wall Street’s expectations last quarter.
What does this mean?
Walmart isn’t just about stocked shelves anymore – its push into digital businesses is paying off. E-commerce sales soared 28% year over year, eclipsing main rivals and driving a 4.5% jump in US same-store sales, ahead of the 3.8% forecast. High-margin areas like online ads and Walmart’s third-party marketplace are turning into major profit engines, with BofA Securities upping its 2026 earnings per share forecast to $2.61 – right in line with market consensus. Club stores pitched in too, as Sam’s Club posted comparable sales up 3.8% and visitor numbers rose 3.9%. Even with headwinds abroad, Walmart managed to nudge its gross margin up to 24.2%, showing operations are staying resilient.
Why should I care?
For markets: Retail’s steady reinvention keeps the floor firm.
Walmart’s evolution is grabbing investors’ attention, with its shares steady around $107 following the results. Moves into higher-margin ventures like digital ads and expanding private labels are helping Walmart stand out in a crowded space and giving investors reasons to look past grocery aisles and see longer-term growth.
The bigger picture: E-commerce evolution shapes retail’s future.
Walmart’s digital strategy isn’t just boosting its own bottom line – it’s rewriting the retail playbook. As more shoppers turn online and embrace private brands, Walmart’s expansive presence and focus on health, wellness, and groceries put it in a strong spot. Its mix of services and tech is pushing competitors to innovate, hinting that adaptability and scale will define future retail leaders.
