This article first appeared on GuruFocus.

Walmart (NYSE:WMT) reports third quarter fiscal 2026 results on Thursday, November 20, before the market opens. Wall Street expects about $0.60 in EPS and roughly $177.5 billion in revenue. That points to another steady quarter, with mid-single-digit growth. The stock is up about 14% so far this year.

Last quarter, Walmart reported $177.4 billion in revenue, a 5% increase year over year. This was supported by e-commerce, which grew about 25%. Walmart's higher-margin segments, advertising and membership, continued to scale, although margin headwinds from inflation, tariffs and logistics costs remain. Looking ahead, the company raised its full-year net-sales growth outlook to 3.754.75% and adjusted EPS to $2.522.62.

Investors will focus on the health of the consumer, particularly the mix of traffic and ticket growth and how customers are prioritising their spending. They will also watch the growth and margin contribution from omni-channel and higher-margin businesses like advertising, marketplace and membership services, and how these offset pressure in general merchandise. Another key area is the cost pressure tied to tariffs. Management previously warned that tariffs are raising inventory costs as goods cycle through the supply chain, and that materially higher tariff levels could weigh on earnings growth and affect price pass-through decisions to consumers. Lastly, CEO Doug McMillon announced he will retire next year. While Walmart has a deep bench and well-established succession planning, investors will want clarity on long-term strategic continuity.

Walmart's valuation remains above its historic average. For the stock to extend its run, management will need to show consistent execution across digital, advertising and membership while navigating tariff-related cost pressure and a still-cautious consumer.