Walmart International experienced a rise in net sales of 11.4% to $33.7 billion. The adjusted operating income increased by 16.9% to $1.4 billion, driven by improvements in e-commerce and a better business mix, with international e-commerce sales growing 26% in the third quarter of fiscal 2026.
Flipkart significantly contributed to this growth, with the event Big Billion Days boosting e-commerce volumes and ad revenues. Meanwhile, China saw sales grow to $6.1 billion, with digital penetration reaching nearly half of total sales through rapid fulfillment services, ensuring most deliveries occur within about an hour.
Walmart’s third-quarter performance showcases the benefits of scalable digital advancements and increased advertising. The sustainability of these trends through fiscal 2026 will rely on various factors, including timing and the specific mix of business segments.
In terms of stock market performance, Walmart has seen a 20.9% increase in shares over the past year, compared to the industry’s 22.2% growth. Walmart’s stock valuation is currently higher than the industry average, with its forward 12-month price-to-earnings ratio at 39.83, and it carries a Value Score of C, indicating a premium trading position compared to competitors.
Walmart’s strong third-quarter international performance offers a clear signal for the weeks ahead. The 11.4% sales growth in this segment, driven by e-commerce, suggests the company has powerful momentum heading into the new year. We see this as a potential upside catalyst that the market may not have fully digested.
This digital strength is particularly relevant right now, as we are in the middle of the critical holiday shopping season. Recent data from the National Retail Federation showed that online spending for the 2025 Black Friday to Cyber Monday period rose 7.5% year-over-year, which supports the trends seen in Walmart’s international operations. This suggests the company’s domestic Q4 results could also be robust.
Given this outlook, we should consider bullish positions using options with expirations in early 2026. Following the earnings report, implied volatility for WMT has settled near 19%, which is relatively low compared to the levels we saw before the announcement. This makes purchasing call options or establishing bull call spreads a more cost-effective way to position for a potential rally.
Looking back, we’ve observed that Walmart’s stock often sees a modest advance in the weeks following a strong Q3 report, as it did in both 2023 and 2024. While its forward price-to-earnings ratio of 39.83 is high, this quarter’s impressive international growth helps to justify that premium. This strength contrasts sharply with the performance of competitors like Target.
The impressive 21.8% sales growth in China is also a key factor, especially as recent November 2025 data showed Chinese retail sales beat expectations. This resilience in a major international market reduces dependency on U.S. consumer spending alone. It diversifies the company’s sources of strength heading into 2026.
