Zaid

And here's the detail that really jumped out to me.

35% of store fulfilled orders were delivered in under three hours.

In fact, the US customers using the fast delivery option, which is deliveries under three hours or less, grew by more than 60% in a year.

I mean, that's the competitive advantage that Walmart has of being within 10 miles of 90% of the US population.

And the other benefit from offering fast deliveries is that Walmart has attracted wealthier shoppers who prioritize convenience.

But I think what's really caught investors' attention is Walmart's margin expansion.

You know, selling groceries isn't really a high margin business, but Walmart's operating profits have been growing faster than revenue, which means that Walmart is getting more profitable.

And that's thanks to three main reasons.

First is advertising.

Walmart's ad revenue was up 46% to $6.4 billion in 2025.

Now that might be surprising to a lot of people, but Walmart is sort of becoming an ad company.

As more and more people shop on Walmart's website and app, that allows Walmart to serve more ads.

Every time someone looks up a product on Walmart's app or website, the first two or three results are sponsored.

Brands pay Walmart for that top placement in the search results, and that is a high margin business.

I'm talking like 70% margins.

The growth in the ad business is contributing more to Walmart's operating profits.

Walmart also recently bought

the smart TV maker.

So that will let them run ads directly into people's living rooms and I guess collect all the data that you're watching on TV, which is very creepy, but that's what pretty much every company does at this point.

Now, the second reason for Walmart's improved margins is automation and inventory efficiency.