Walmart Raises Guidance as Digital Sales Surge

Walmart (NASDAQ:WMT) raised its full-year sales and operating earnings guidance after a strong quarter marked by rapid digital commerce growth, surging marketplace volumes, and expanding advertising revenue.

The retail giant saw total revenue rise in the mid-single digits for the most recently reported quarter, with constant currency growth slightly lower. Operating earnings expanded at a rate roughly five times faster than revenue, driven by higher-margin streams such as advertising and membership fees.

Digital commerce was the standout performer, with domestic digital sales growing by roughly a quarter year over year, while international digital commerce expanded by close to a fifth. Store-fulfilled delivery in the domestic business grew by roughly forty percent, converting physical stores into distribution nodes and allowing delivery promises that pure-play competitors struggle to match.

The company's advertising revenue grew by close to forty percent, with membership fee revenue across the group growing at a high-teens rate. These higher-margin streams are reshaping the earnings mix for Walmart, which is now earning rich margins on advertising placements and subscription fees, in addition to thin margins on groceries and general merchandise.