Walmart's E-commerce Sales Jump 27%: Is Digital Now a Core Driver?

Walmart Inc. WMT delivered a standout quarter in digital, with global e-commerce ascending 27% in the third quarter of fiscal 2026, including more than 20% growth in each segment. In the United States, e-commerce sales surged 28% and added roughly 440 basis points to comparable sales, underscoring how digital channels are now tightly integrated with store performance rather than operating as a side business.

The momentum reflects both demand and execution. Store-fulfilled delivery surged nearly 70% and nearly 35% of store-fulfilled digital orders were delivered in less than three hours. Faster turnaround times are becoming a consistent customer experience across markets as the company expands pickup and delivery capabilities and strengthens marketplace activity. 

Behind the digital push is a more automated network. More than 60% of stores now receive freight from automated distribution centers, and more than half of e-commerce fulfillment center volume runs through automated processes. These upgrades have driven better unit productivity and a lower cost to serve, supporting healthier digital margins.

Walmart highlighted improved e-commerce economics and reduced international e-commerce losses, alongside the growing role of advertising and membership income, which together represented about one-third of consolidated adjusted operating income in the third quarter.

All said, WMT’s third-quarter performance reflects that e-commerce has shifted from being a secondary growth lever to a core driver of sales mix, customer engagement and operating efficiency.

Target and Costco: Digital Traction Underway

Target’s TGT digital comparable sales rose 2.4% year over year in the third quarter of fiscal 2025, mainly driven by more than a 35% jump in same-day delivery supported by Target Circle 360. Non-merchandise revenues, including advertising, membership and marketplace income, rose nearly 18%, pointing to a gradually strengthening digital mix at TGT and rising contribution from higher-margin services. 

Costco’s COST e-commerce momentum remains solid. In the fourth quarter of fiscal 2025, Costco’s e-commerce comparable sales grew 13.6% year over year, and for the full fiscal year, the metric rose 15.6%. COST also reported overall comparable sales growth of 5.7% in the fourth quarter, showing that digital strength is adding to warehouse-based volume.

WMT’s Stock Price Performance, Valuation & Estimates

Shares of Walmart have risen 23.4% year to date compared with the industry’s growth of 21.8%.

WMT Price Performance Versus Industry

From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 38.66, higher than the industry’s average of 34.93.

WMT’s Valuation Compared to Industry

The Zacks Consensus Estimate for WMT’s fiscal 2026 and 2027 earnings implies year-over-year growth of 4.8% and 11.6%, respectively.

Walmart currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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