Walmex stock faces profit pressure despite digital growth

Walmart de Mexico y Centroamerica reported weaker profitability for the third quarter ended September 30, 2026, as higher expenses and taxes outweighed continued sales and digital-commerce growth. The company released the results on Tuesday, October 27, according to Morningstar.

Profit falls as costs rise

Net profit declined 6.1 percent year over year to MXN 11.03 billion from MXN 11.75 billion. Earnings per share decreased to MXN 0.642 from MXN 0.678. Consolidated revenue rose 3 percent to MXN 248.83 billion, but the increase remained below the pace of operating-cost growth.

General expenses increased 5.7 percent in reported terms and 6.3 percent in constant currency. They reached 17.4 percent of sales, compared with 17 percent a year earlier. Operating profit fell 1.8 percent to MXN 18.68 billion, while EBITDA edged up 0.4 percent to MXN 25.37 billion.

The higher spending reflected investments in new stores, e-commerce, technology and staffing. Management also pointed to a higher effective tax rate caused by non-recurring adjustments related to prior-year tax calculations. The company expects that rate to normalize in the fourth quarter, according to an Investing.com transcript.

Digital channels remain a bright spot

Mexico same-store sales increased 1.7 percent, with the average ticket up 1.6 percent while customer traffic was broadly unchanged. Central American same-store sales rose 4.8 percent, supported by higher customer numbers and a larger average basket.

E-commerce provided stronger momentum. Mexico digital net sales increased 16 percent, including 21 percent growth in store-fulfilled deliveries. Across the group, revenue advanced 3.6 percent in constant currency, compared with 3 percent on a reported basis. The combination of market-share gains and digital expansion supports Walmex's longer-term growth strategy, but the quarter also showed the near-term cost of maintaining price competitiveness and investing in capacity.

Outlook stays unchanged

Management reaffirmed its 2026 guidance for consolidated sales growth of 3.5 to 4.5 percent in constant currency. It continues to expect the EBITDA margin to finish slightly below the prior year's level of 10.2 percent. For investors, the central issue is whether digital growth and productivity improvements can offset continued pressure from pricing investments, store expansion and labor costs.

Walmex stock traded at 2.31 euros on Lang & Schwarz at 12:03 CET on Friday, October 30, 2026.

Investors can follow the real-time quote of Walmex stock for further trading updates.

Retail shares remain sensitive to consumer demand, wage costs and interest-rate expectations; the S&P 500 provides the broader market context.

For more company-specific developments, see more news and analyses on Walmex stock.