McKinsey analyzed 61 growth companies that outperformed their peers during COVID, inflation, and labor shocks. Here’s what they all had in common

Did you realize Walmart’s advertising arm made up roughly 30% of the company’s operating profit last year? Did you even know it has an advertising business?

That surprising detail—unknown to many, myself included—highlights the findings of a new , released today. In the report, Inspired for business growth: How five companies beat the market, the consulting firm’s researchers looked at how large businesses achieve impressive long-term growth in both revenue and profits—a challenging feat.

The study pinpointed 61 companies that outshone their peers between 2019 and 2024, such as the investment bank & Co.; the insurance company ; ASML, the Dutch chip-making equipment manufacturer; and Builder FirstSource, a construction products and services firm. This period was undoubtedly difficult, marked by the COVID pandemic, subsequent inflation, and a labor crunch. Yet, on average, these companies outpaced their peers’ revenue growth by a notable five percentage points and annual profitability by seven percentage points. The outcome: a five-point advantage in total shareholder returns.

The researchers found three characteristics common to the winners:

They invest in business growth regardless of economic conditions. Simple to state, but tough to execute when funds are scarce—yet these companies push through and do it.

They create multiple diverse growth drivers instead of depending on one or two. Not every initiative will work. But these companies spot chances to develop growth engines beyond their main business while using their current assets.

They leverage technology to accelerate their efforts. Time equals money, particularly as companies worldwide use AI to gain a speed-based edge.

These three attributes circle back to Walmart. Its advertising division, Walmart Connect, is an internal platform where sellers can market products sold on Walmart Marketplace or in physical stores, fueled by the company’s vast shopper behavior data. It’s a perfect example of how a already massive company can still achieve significant, profitable growth by creatively using its existing assets.

Striking the right balance between nurturing the core business and expanding into new areas is critical, according to McKinsey senior partner Greg Kelly. “If you don’t grow in your home market or core category, you’re very likely to underperform,” he told . “So that’s a must—but it’s not enough. We were strongly reminded that having those multiple drivers is what makes outperformance much more probable.”

The pandemic’s disruption underscored that careful investment—even during tough times—is key to growth. “Everyone says they value growth,” Kelly noted. “But it’s hard, especially during a period like COVID that hit businesses so hard, to keep investing consistently. Only one-third managed to do it.”

This discipline is the main driver behind the successes studied. “What sets business growth leaders apart isn’t better foresight—it’s stronger conviction,” the authors state—an insight that deserves a place on every CEO’s wall. “They invest when uncertainty is greatest, build skills instead of chasing trends, and approach growth as something to be planned and executed, not just wished for.”