Walmart U.S.'s third-quarter results showed strong revenue growth of 5.5%, contributing to a consolidated gross margin rate increase of 21 basis points.

The company reported free cash flow of $6.2 billion, an increase of $1.9 billion year-to-date, and operating cash flow of $22.9 billion, up $3.9 billion year-to-date.

Digital sales saw significant growth, with global e-commerce sales rising by 27%, driven by strong penetration across all segments and comparable sales increasing by just over 5%.

The e-commerce sales boost was led by store-fulfilled pickup and delivery, advertising, and the marketplace. Walmart International's e-commerce sales grew even more substantially, up 43%.

Consolidated operating income increased by $0.5 billion, or 8.2%, and rose 9.8% in constant currency, due to higher gross margins and growth in membership income. The results were also supported by reduced losses in e-commerce.

The surge in digital sales contributed to a 9.1% increase in operating income, with gross margin expansion and membership income playing key roles, alongside improved business mix that helped reduce e-commerce losses.

Following this strong performance, Walmart raised its FY25 guidance, projecting net sales growth of 4.8% to 5.1% and adjusted operating income growth of 8.5% to 9.25%.

Global inventory levels are down 1.0%, including a 0.6% decrease for Walmart U.S., with the company reporting "healthy" in-stock levels.

The company’s fiscal year guidance, based on FY24 figures, has either increased or remained unchanged.