Walmart Q3 FY25 Financials & Q4 Earnings Preview

Walmart Inc. (WMT) has reported its Q3 FY25 financial results for the quarter ending October 31, 2024, demonstrating steady growth amid a challenging retail environment. With net sales of $169.6 billion and a GAAP EPS of $0.57, the company continues to solidify its position in both physical and digital retail channels. Investors now eagerly await the Q4 FY25 earnings call scheduled for February 20, 2025, which will provide further insights into Walmart’s evolving performance and strategic outlook.

In this article, we examine Walmart’s Q3 FY25 performance, dissect the revenue segmentation across key business segments, review capital intensity and labor productivity improvements, assess competitive positioning, and incorporate the latest options market data. The discussion also highlights analyst expectations for the upcoming earnings release and emerging trends that may impact Walmart’s near- and long-term prospects.

Q3 FY25 Financial Performance

For the quarter ending October 31, 2024, Walmart reported net sales of $169.6 billion, reflecting a 5.5% increase on a reported basis and a 6.2% increase in constant currency. The company’s GAAP EPS was $0.57, up 8.2% from the previous year, while adjusted EPS stood at $0.58 after excluding unrealized investment losses. Operating income reached $6.7 billion, growing by 8.2% year-over-year, with adjusted operating income in constant currency expanding by 9.8%.

A key highlight was the 27% jump in global eCommerce sales, which contributed significantly to the U.S. comparable sales growth. Global advertising revenue also saw a 28% increase, supported by the performance of Walmart Connect. Modest declines in inventory levels globally and in the U.S. indicate improved inventory management despite ongoing supply chain challenges.

Revenue Segmentation Analysis

Walmart’s revenue is derived from three primary segments: Walmart U.S., Walmart International, and Sam’s Club. Each segment contributed distinctly to the overall performance in Q3 FY25.

Walmart U.S. Segment

The Walmart U.S. segment remains the core of operations, delivering $114.9 billion in net sales and accounting for…