02:55 PM EST, 11/21/2025 (MT Newswires) -- Walmart ( WMT ) is using a consistent consumer backdrop and its operating "flywheel" to drive further market-share gains after a beat-and-raise fiscal Q3, RBC Capital Markets said, calling it a strong quarter for CEO Doug McMillon to go out on.

The brokerage said Thursday in a note that Walmart's ( WMT ) general merchandise trends improved, with fashion, electronics, toys and hardlines posting the strongest growth in years.

Advertising and membership income grew more than 50% globally, and Walmart+ posted record quarterly net additions. Inventory levels remained disciplined despite tariff-related cost pressure, RBC noted. FX and the Vizio acquisition provided modest tailwinds to sales and operating income.

The investment firm said management is operating from "a position of strength" and "playing offense," willing to "lean into price" to drive share gains while "optimizing for profit dollars."

RBC now models fiscal Q4 net sales growth of 5.6%, up from 5.3%, and adjusted EPS of $0.72, down from $0.74, reflecting a slight moderation in gross margin assumptions while maintaining the strong top-line outlook

The brokerage also highlighted a modest increase in capital expenditure guidance and cautioned that fair-price legislation could weigh on Health & Wellness comps in Q4 and 2026.

RBC kept its outperform rating and $116 price target.

Shares of Walmart ( WMT ) were down 1.3% in recent Friday trading.

Price: 105.72, Change: -1.39, Percent Change: -1.30