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Walmart Inc. (WMT - Free Report) is scheduled to report its third-quarter fiscal 2026 earnings on Nov. 20. The company has been gaining from solid momentum across store and digital channels, an improving merchandise mix, and growing contributions from membership and advertising. The main factors to watch for the quarter are how tariff-related costs, claims expenses and general merchandise elasticity balance against these strengths.
The Zacks Consensus Estimate for third-quarter revenues stands at $177.1 billion, indicating an increase of 4.5% from the same period last year. The consensus mark for earnings has risen by a penny in the past seven days to 61 cents per share, marking a 5.2% rise from the figure reported in the year-ago period.
Walmart has a trailing four-quarter average earnings surprise of 2.8%. In the last reported quarter, the company delivered a negative earnings surprise of 6.9%.
What the Zacks Model Predicts for WMT’s Q3 Earnings
As investors prepare for WMT’s quarterly announcement, the question looms regarding earnings beat or miss. Our proven model predicts an earnings beat for Walmart this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Walmart has a Zacks Rank #3 and an Earnings ESP of +1.15% at present. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
What’s Shaping WMT’s Q3 Earnings?
Walmart’s upcoming results are likely to reflect steady demand and share gains it highlighted last quarter. In the second quarter, the company saw consistent behavior across income groups, with ongoing strength in grocery and consumables, and signs of improvement in general merchandise categories like apparel, media and automotive. Rollbacks on thousands of items helped ease inflation for shoppers, supporting traffic and unit growth, which are likely to have continued into the third quarter. Walmart also noted that higher-income households are shopping more frequently, which adds another layer of stability to its top line.
Digital momentum is another key driver. Global e-commerce sales grew 25% in the second quarter, driven by rapid growth in store-fulfilled delivery and a strong marketplace business. With customer expectations rising around convenience and fast delivery, e-commerce remains an important comp sales driver heading into the third quarter.
Walmart’s growing mix of higher-margin businesses is also shaping the quarter. Advertising grew 46% globally in the second quarter, and membership income climbed more than 15%, reflecting strong momentum in Walmart+, Sam’s Club and the company’s ad platform. These profit streams help offset near-term cost pressures and provide a cushion as Walmart keeps consumer prices sharp in a more promotional environment.
International strength should also play a role. Markets like China, Walmex and Flipkart delivered strong constant-currency growth last quarter, supported by pickup, delivery and marketplace gains. While currency fluctuations may cause hindrances, underlying demand trends have been healthy.
At the same time, some headwinds remain in the picture. Tariff-driven cost increases continue to flow through inventory, and while Walmart has seen only mild shifts in consumer behavior, certain categories are showing elasticity. The company also faced elevated self-insured liability and workers’ compensation costs in the first half, which remains a watch factor for the quarter under review.
WMT Stock Price Performance
Over the past year, Walmart stock has rallied 18.9% compared with the Zacks Retail – Supermarkets industry’s growth of 18.3% and the Zacks Retail – Wholesale sector’s increase of 7.9%. WMT also outpaced the S&P 500’s 15.7% rise during the same period.
Image Source: Zacks Investment Research
In the said time frame, Walmart surpassed other retailers such as The Kroger Co. (KR - Free Report) , Costco Wholesale Corporation (COST - Free Report) and Target Corporation (TGT - Free Report) . While Kroger shares have rallied 13.8% over the past year, Costco and Target have declined 1.9% and 43.3%, respectively.
Walmart’s Valuation Picture
Walmart shares are currently trading at a forward 12-month price-to-earnings ratio of 36.02, above the industry’s average of 32.78. The company’s premium valuation reflects its consistent execution, stronger mix and accelerating digital profitability, but it leaves less room for error if growth decelerates.
Image Source: Zacks Investment Research
While Walmart is trading at a premium to Kroger and Target, its valuation stands below COST at present. KR trades at a P/E ratio of 12.8, TGT stands at 11.21, and COST trades at 44.83.
How Should Investors Play WMT Stock Now?
Walmart heads into the third quarter with solid traffic trends, strong omnichannel growth and expanding higher-margin profit streams, while tariff costs and elevated claims expenses remain near-term hurdles. With a Zacks Rank #3 and a positive Earnings ESP, the indicators tilt toward an earnings beat. Given the company’s consistent execution and defensive positioning, Walmart remains a reasonable hold for investors seeking stability and steady growth.
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WMT Gears Up for Q3 Earnings Release: Buy, Sell or Hold the Stock Now?
Key Takeaways
Walmart Inc. (WMT - Free Report) is scheduled to report its third-quarter fiscal 2026 earnings on Nov. 20. The company has been gaining from solid momentum across store and digital channels, an improving merchandise mix, and growing contributions from membership and advertising. The main factors to watch for the quarter are how tariff-related costs, claims expenses and general merchandise elasticity balance against these strengths.
The Zacks Consensus Estimate for third-quarter revenues stands at $177.1 billion, indicating an increase of 4.5% from the same period last year. The consensus mark for earnings has risen by a penny in the past seven days to 61 cents per share, marking a 5.2% rise from the figure reported in the year-ago period.
Walmart has a trailing four-quarter average earnings surprise of 2.8%. In the last reported quarter, the company delivered a negative earnings surprise of 6.9%.
Walmart Inc. Price, Consensus and EPS Surprise
Walmart Inc. price-consensus-eps-surprise-chart | Walmart Inc. Quote
What the Zacks Model Predicts for WMT’s Q3 Earnings
As investors prepare for WMT’s quarterly announcement, the question looms regarding earnings beat or miss. Our proven model predicts an earnings beat for Walmart this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Walmart has a Zacks Rank #3 and an Earnings ESP of +1.15% at present. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
What’s Shaping WMT’s Q3 Earnings?
Walmart’s upcoming results are likely to reflect steady demand and share gains it highlighted last quarter. In the second quarter, the company saw consistent behavior across income groups, with ongoing strength in grocery and consumables, and signs of improvement in general merchandise categories like apparel, media and automotive. Rollbacks on thousands of items helped ease inflation for shoppers, supporting traffic and unit growth, which are likely to have continued into the third quarter. Walmart also noted that higher-income households are shopping more frequently, which adds another layer of stability to its top line.
Digital momentum is another key driver. Global e-commerce sales grew 25% in the second quarter, driven by rapid growth in store-fulfilled delivery and a strong marketplace business. With customer expectations rising around convenience and fast delivery, e-commerce remains an important comp sales driver heading into the third quarter.
Walmart’s growing mix of higher-margin businesses is also shaping the quarter. Advertising grew 46% globally in the second quarter, and membership income climbed more than 15%, reflecting strong momentum in Walmart+, Sam’s Club and the company’s ad platform. These profit streams help offset near-term cost pressures and provide a cushion as Walmart keeps consumer prices sharp in a more promotional environment.
International strength should also play a role. Markets like China, Walmex and Flipkart delivered strong constant-currency growth last quarter, supported by pickup, delivery and marketplace gains. While currency fluctuations may cause hindrances, underlying demand trends have been healthy.
At the same time, some headwinds remain in the picture. Tariff-driven cost increases continue to flow through inventory, and while Walmart has seen only mild shifts in consumer behavior, certain categories are showing elasticity. The company also faced elevated self-insured liability and workers’ compensation costs in the first half, which remains a watch factor for the quarter under review.
WMT Stock Price Performance
Over the past year, Walmart stock has rallied 18.9% compared with the Zacks Retail – Supermarkets industry’s growth of 18.3% and the Zacks Retail – Wholesale sector’s increase of 7.9%. WMT also outpaced the S&P 500’s 15.7% rise during the same period.
Image Source: Zacks Investment Research
In the said time frame, Walmart surpassed other retailers such as The Kroger Co. (KR - Free Report) , Costco Wholesale Corporation (COST - Free Report) and Target Corporation (TGT - Free Report) . While Kroger shares have rallied 13.8% over the past year, Costco and Target have declined 1.9% and 43.3%, respectively.
Walmart’s Valuation Picture
Walmart shares are currently trading at a forward 12-month price-to-earnings ratio of 36.02, above the industry’s average of 32.78. The company’s premium valuation reflects its consistent execution, stronger mix and accelerating digital profitability, but it leaves less room for error if growth decelerates.
Image Source: Zacks Investment Research
While Walmart is trading at a premium to Kroger and Target, its valuation stands below COST at present. KR trades at a P/E ratio of 12.8, TGT stands at 11.21, and COST trades at 44.83.
How Should Investors Play WMT Stock Now?
Walmart heads into the third quarter with solid traffic trends, strong omnichannel growth and expanding higher-margin profit streams, while tariff costs and elevated claims expenses remain near-term hurdles. With a Zacks Rank #3 and a positive Earnings ESP, the indicators tilt toward an earnings beat. Given the company’s consistent execution and defensive positioning, Walmart remains a reasonable hold for investors seeking stability and steady growth.