WMT Sees Broad-Based Digital Gains: Is the 20%+ Growth Sustainable?

Walmart Inc.’s WMT third-quarter performance continued to highlight the strength of its digital momentum, with global e-commerce sales increasing 27% year over year. This growth reflected consistent execution across Walmart U.S., Sam’s Club and Walmart International.

In Walmart U.S., e-commerce sales grew 28%, supported by strong performance in store-fulfilled pickup and delivery, marketplace expansion and advertising. Faster fulfillment played a key role, with approximately 35% of store-fulfilled digital orders delivered in under three hours during the quarter. Sales through these expedited delivery channels rose nearly 70%, underscoring the growing role of speed and convenience in boosting digital engagement.

Sam’s Club U.S. delivered e-commerce growth of 22%, fueled by the rising adoption of digital tools such as Scan & Go, curbside pickup and delivery. Scan & Go penetration reached 36%, up 450 basis points year over year, while club-fulfilled delivery posted triple-digit growth yet again. These trends indicate that digital usage is becoming increasingly embedded in the member shopping experience.

In Walmart International, e-commerce sales advanced 26%, led by marketplace and store-fulfilled pickup and delivery, with strength across markets, including China and Flipkart. Nearly one-third of Walmart’s international business is now digital, highlighting the scale of its global digital operations.

Faster delivery, an expanding marketplace, deeper advertising integration, and rising customer and member usage suggest that digital growth is becoming part of everyday shopping behavior. The sustainability of Walmart’s more than 20% e-commerce growth will largely depend on its ability to continue scaling its omnichannel platform efficiently across markets and formats.

A Look at Digital Trends at Costco and Target

Costco Wholesale Corporation COST reported a 20.5% increase in digitally enabled comparable sales during the first quarter of fiscal 2026, reflecting broader member engagement with digital tools. COST noted steady online engagement, particularly in select non-food and big-and-bulky categories, while emphasizing continued investments aimed at improving member convenience through digital capabilities.

Target Corporation TGT continues to position digital as a core traffic and engagement driver, with its third-quarter results reflecting steady adoption of same-day services. TGT’s digital comparable sales rose 2.4% in the third quarter, driven by same-day delivery growth of more than 35%. For Target, sustaining digital momentum hinges on execution within same-day fulfillment.

WMT’s Stock Price Performance, Valuation & Estimates

Shares of Walmart have risen 28.6% in the past year compared with the industry’s growth of 27.7%.

From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 40.63, higher than the industry’s average of 36.81.

The Zacks Consensus Estimate for WMT’s fiscal 2026 and 2027 earnings implies year-over-year growth of 4.8% and 12.3%, 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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