Walmart International’s net sales grew by 11.4%, reaching $33.7 billion. The adjusted operating income jumped by 16.9% to $1.4 billion, thanks to better e-commerce performance and a more balanced business mix. Notably, international e-commerce sales rose by 26% in the third quarter of fiscal 2026. Key to this success was Flipkart, which saw a boost in e-commerce volumes and ad revenue during the Big Billion Days event. In China, sales increased to $6.1 billion, with about half of these sales coming from digital channels, supported by rapid delivery services that often fulfill orders within an hour. Walmart’s strong third-quarter results highlight the advantages of digital growth and increased advertising efforts. Sustaining this success through fiscal 2026 will depend on various factors, including timing and the mix of business segments. On the stock market front, Walmart shares rose by 20.9% over the past year, while the industry grew by 22.2%. Currently, Walmart’s stock is valued higher than the industry average, with a forward 12-month price-to-earnings ratio of 39.83. Its Value Score of C suggests it trades at a premium compared to its competitors. Walmart’s solid international performance in the third quarter signals potential for the upcoming weeks. The 11.4% sales growth in this area, primarily driven by e-commerce, shows the company is gaining momentum as it heads into the new year. This could serve as a positive surprise for the market. With the crucial holiday shopping season underway, this digital strength is especially important. Data from the National Retail Federation revealed that online spending from Black Friday to Cyber Monday 2025 rose by 7.5% compared to the previous year, aligning with trends seen in Walmart’s international results. This suggests that the company’s domestic Q4 performance could also be strong. Given this positive outlook, we might consider bullish options strategies with expirations in early 2026. After the earnings report, implied volatility for WMT has stabilized around 19%, which is lower than before. This makes buying call options or establishing bull call spreads a more cost-effective way to prepare for a potential rise in stock price. Historically, Walmart’s stock tends to climb modestly in the weeks following a robust Q3 report, as seen in both 2023 and 2024. While its forward price-to-earnings ratio of 39.83 is high, this quarter’s strong international growth helps justify that premium. This growth stands in contrast to competitors like Target. The notable 21.8% sales growth in China is also crucial, especially since November 2025 data showed that Chinese retail sales exceeded expectations. This resilience in a major international market reduces reliance on U.S. consumer spending, diversifying Walmart’s strengths as it moves into 2026.

here to set up a live account on VT Markets now