Walmart (WMT) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 revenue grew 5.5% to $169.6 billion, with operating income up 8.2% to $6.7 billion and eCommerce sales up 27% globally, driven by strong U.S. and international performance.

• Adjusted EPS was $0.58, up 13.7% year-over-year, while GAAP EPS was $0.57; net income rose to $4.7 billion from $0.6 billion a year ago.

• Global advertising business grew 28%, and membership income rose 22%, both contributing significantly to profit growth.

• The company completed the $2 billion acquisition of Vizio Holding Corp. in December 2024.

• Inventory declined 1.0% globally, reflecting strong inventory management.

Financial highlights

• Gross profit margin improved to 24.2%, up 21 basis points year-over-year, led by Walmart U.S. and eCommerce margin gains.

• Operating margin rose to 4.0% from 3.9% a year ago; net income margin for Q3 was 2.7%.

• Free cash flow for the nine months ended October 31, 2024, was $6.2 billion, up $1.9 billion year-over-year.

• Operating cash flow for the nine months was $22.9 billion, up 20.5% year-over-year.

• Repurchased 46 million shares year-to-date, totaling $3.0 billion; $13.5 billion remains authorized.

Outlook and guidance

• FY25 net sales growth expected at 4.8% to 5.1% in constant currency, with adjusted operating income up 8.5% to 9.25%.

• Adjusted EPS guidance for FY25 is $2.42 to $2.47; capital expenditures expected at 3.0% to 3.5% of net sales.

• Q4 guidance: sales growth of 3%–4% and operating income growth of 5%–7.5%.

• Currency expected to be a headwind in Q4, impacting reported sales and operating income by 100 and 200 basis points, respectively.

• Guidance assumes a stable consumer environment and continued product mix pressures globally.