Walmart's tech glow-up

One “big box” retailer is thinking outside the box, and inside the cloud.

Walmart just beat third-quarter earnings and revenue estimates, and management expects full-year sales to grow between 4.8% and 5.1%. Great news across the board helped shares gain 6.47% today.

A big driver of the beat was continued strength across Walmart’s customer base, particularly a 27% surge in global online sales. Even with a small dip tied to reduced SNAP benefits, its everyday-low-price strategy continued to attract value-seeking shoppers and helped it gain market share across income levels.

While a meaningful share of that growth came from more affluent consumers, Walmart’s overall customer behavior has remained relatively steady—unlike the more “K-shaped” trends hurting chains like Sweetgreen and Chipotle.

Tariffs were another key theme this quarter. With roughly a third of its products coming from countries like China, Mexico, and India, Walmart managed those pressures well: Its broader assortment of products lets it raise prices on some items while lowering others, and it adjusted merchandise orders to reduce markdown risk. For example, it has leaned into kids’ items, keeping deeper inventories in categories families continue to prioritize even when budgets are strained.

That helps Walmart stand in contrast to Target, Lowe’s, and Home Depot—all of which cut guidance recently.

From big box to big tech

Walmart’s results came with an unexpected twist: The retail giant is ditching the New York Stock Exchange and shifting its listing to the Nasdaq, the largest departure in NYSE’s history by market cap. The move, framed as part of a more “tech-forward approach,” takes effect Dec. 9, with Walmart keeping its familiar ticker, WMT.

“Walmart is setting a new standard for omnichannel retail by integrating automation and AI to build smarter, faster, and more connected experiences for customers, while enabling our associates to deliver even greater value at scale,” said CFO John David Rainey.

One example of Walmart’s shift into a tech titan is its advertising unit, where global revenue jumped 53% from a year earlier, boosted in part by Vizio, the smart-TV business Walmart bought last year for $2.3 billion. Another is Walmart’s recent partnership with OpenAI, which allows Walmart and Sam’s Club members to reorder groceries directly through ChatGPT.

What’s next?

One thing investors will be watching closely is leadership: John Furner is set to replace 12-year CEO Doug McMillon on Feb. 1. Furner is expected to continue Walmart’s push into digital and e-commerce, with an even sharper focus on AI as the company’s next growth driver.

The other near-term focus is the holiday season. Combined with Walmart’s growing emphasis on tech and value, its holiday performance will be closely watched as a key barometer for consumer health.—SY