• by Sarah Mahoney , Yesterday

Walmart is powering into the holidays with the kind of sales momentum most retailers would kill for. Third-quarter revenue climbed 5.8% to $179.5 billion, with U.S. comps up 4.5% and broad-based strength across grocery, health and wellness, and general merchandise. The results were strong enough that the world’s largest retailer raised its full-year forecast, signaling a level of confidence that stands out in a season marked by mixed economic signals and a whole lot of hedging from competitors.

Walmart’s fast-growing ad business also posted another blockbuster quarter. Global advertising revenue surged 53%, including 33% growth in Walmart Connect’s U.S. operation, reflecting brands’ increasing reliance on retail media to reach value-hungry shoppers. That ad demand also helped propel ecommerce sales, which jumped 28%.

The backdrop is a deeply contradictory consumer. The National Retail Federation expects a record 186.9 million shoppers between Thanksgiving and Cyber Monday — a wave fueled by promotions that shoppers say are too good to ignore. Yet an Ipsos poll shows half of Americans worried about managing holiday finances; a third say they feel more pessimistic than they did a year ago. Two-thirds plan to cut back in at least one category, especially dining out, travel, and gifts.

That tension — record traffic paired with cautious spending — is a sweet spot for Walmart. The company reported gains across all income cohorts, with higher-income families again driving outsized share growth. Even general merchandise, including apparel, posted gains. Membership income rose 17%, with Walmart+ logging its strongest quarter for net adds since launch, signaling strong retention rates and the ability to compete more directly with Amazon and Costco.

Customer behavior has been “pretty consistent,” outgoing CEO Doug McMillon told investors, though he acknowledged “pockets of moderation” among lower-income shoppers. Still, he said strong back-to-school and Halloween results — and the response to Walmart’s stepped-up rollbacks — give the retailer confidence heading into the peak weeks.

Walmart now expects full-year sales to grow between 4.8% and 5.1%, with adjusted operating income rising 4.8% to 5.5%.

Its holiday marketing will only amplify that momentum, including the return of Walton Goggins as the Grinch in the “WhoKnewVille” campaign spotlighting marquee deals.

The results demonstrate that Walmart “continues to play offense to gain market share from other retailers across demographics,” Brad Jashinsky, senior director analyst at Gartner, tells Marketing Daily. “The combination of providing great product prices, faster fulfillment speed, and a growing product catalog is helping Walmart succeed.”

He also cites Walmart executives calling out the company’s growing tech prowess as a way to move into multimodal arenas. Jashinsky notes that those tactics, like integrating live streaming and influencer content into the shopping experience, have driven “significant revenue for many brands in Asia, but hasn't had the same impact in the U.S. Walmart has a big opportunity to drive affiliate revenue from influencers, which has been an area that Amazon has long cornered the market on.”