Wayfair (NYSE: W) posted its strongest sales growth since the pandemic in the third quarter of 2026, with total revenue climbing 9.7% year over year to $3.42 billion and U.S. net revenue rising 11.4% to roughly $3 billion — beating Wall Street’s $3.38 billion revenue estimate and swinging to a $62 million net profit from a $99 million loss a year earlier, CNBC reported.
Here is the math. For the period ended Sept. 30, the furniture retailer reported adjusted earnings of 93 cents per share against 79 cents expected, and net income of 45 cents per share compared with a loss of 76 cents per share in the prior-year quarter. The stock closed about 11% higher on Wednesday. The results land while the housing market remains sluggish, which makes the growth rate more notable, not less.
Profit Turnaround Drives Investor Attention
- Wayfair’s revenue growth of 9.7% has now resulted in positive net income for the first time in the comparison period, showing that its operations are finally generating profit.
- U.S. growth of 11.4% is carrying the company while international revenue declined 2.3% to $380 million — a geographic divergence investors should watch.
What Drove the 9.7% Revenue Beat
The growth is broad-based: active customers grew 4.7% year over year to 22.2 million, and orders delivered rose 12.2% to about 11 million. That means Wayfair is not just selling more per customer — it is acquiring customers and moving more units. CFO Kate Gulliver attributed the momentum to shopper loyalty, new store openings, the luxury furniture business, and an emphasis on value.
“We see the overall consumer in the U.S. in this category, we think it’s roughly flattish, and so that’s our share momentum continuing to build,” Gulliver told CNBC. She added that customers are continuing to spend across both value-priced and luxury items.
Why Flat Promotions Matter for the Holiday Quarter
Gulliver said Wayfair has been highly promotional for the last few years, but this year’s promotional activity is consistent with last year’s. “It maintains this sort of momentum on promotional activity this year,” she said. For the fourth quarter, she said the company is maintaining promotional activity similar to last year and is confident its range of prices and products will appeal to a broad base of consumers.
“We’ve seen that growth play out,” Gulliver said. “We’ve seen that flow through to EBITDA, ultimately to net income positive this quarter, which is really another key piece in the story and the momentum here, so we feel very good about the quarter of the performance.”
Quarter-at-a-Glance: The Numbers Behind the Beat
| Metric | Q3 2026 | Year-over-Year | Wall Street Expected |
|---|---|---|---|
| Total revenue | $3.42 billion | +9.7% | $3.38 billion |
| Adjusted EPS | 93 cents | — | 79 cents |
| Net income | $62 million (45 cents/share) | vs. loss of $99 million (76 cents/share) | — |
| U.S. net revenue | ~$3 billion | +11.4% | — |
| International net revenue | $380 million | -2.3% | — |
| Active customers | 22.2 million | +4.7% | — |
| Orders delivered | ~11 million | +12.2% | — |
The Geographic Split Investors Should Watch
The domestic strength against international weakness is the sharpest contrast in the report. U.S. revenue grew 11.4% while international net revenue fell 2.3% to $380 million. That split suggests Wayfair’s market share gains are concentrated in its home market, where Gulliver described the consumer as roughly flattish — meaning Wayfair is taking share rather than riding category growth.
How This Quarter Connects to the Housing Market
The report arrives as the housing market remains sluggish, which normally pressures furniture spending. Wayfair has nonetheless reported consistent growth over the past year.
Gulliver framed the fourth-quarter setup as a continuation, not an acceleration: promotional activity held flat, price range spanning value to luxury, and confidence that the growth already demonstrated will carry into the holiday season.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
