With worries about tariffs swirling, the market was eager to understand how these developments would impact one of the biggest retailers around when Walmart (NYSE:WMT) reported its Q2 FY2026 earnings. The verdict came in, and it was a bit mixed.
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Walmart’s revenues of $177.4 billion outpaced expectations by some $1.27 billion, representing year-over-year growth of 5.6% in constant currency. However, the company’s EPS of $0.68 missed by -$0.06 – the first time the company didn’t meet market projections in over three years.
Seizing on this bit of bad news, the market responded in kind and WMT’s share price has dropped some 6% since the earnings came out just over a week ago.
Top investor Rick Orford isn’t too concerned, believing that Walmart has plenty of reasons to keep for the long haul.
“The company’s scale, digital transformation, and marketplace platform position it for long-term growth, with e-commerce and advertising as key drivers,” says the 5-star investor, who is among the top 1% of TipRanks’ stock pros.
Orford notes that Walmart’s global advertising business is growing, and increased by 30% last quarter. With over 255 million customers per week, the company has the ability to generate massive amounts consumer data – meaning “the potential is huge” in this sector.
E-commerce is another area that Orford is focusing on, pointing out that it is “becoming a primary growth driver” for the company, as it grew e-commerce sales globally by 25%. This was aided by fast service, the investor further details, with roughly a third of all recent deliveries from stores delivered in three hours or less. In this case, Walmart’s vast physical presence offers a major advantage, as its 4,600 U.S. stores serve as mini-distribution sites.
There are risks, of course, acknowledges Orford, with both tariff pressures and a dip in consumer spending ones to look out for. Competition from actors like Amazon could also hit Walmart, especially as it ramps up its grocery offerings and physical stores.
Nevertheless, Orford suggests investors focus beyond the recent headlines and instead think about the long-term.
“I think WMT stock is a worthy addition to a set-it-and-forget-it portfolio,” concludes Orford, who rates WMT a Buy. (To watch Orford’s track record, click here)
That’s where Wall Street comes down on the bargain retail giant as well. With 29 Buys and zero Holds or Sells, WMT cruises to a Strong Buy consensus rating. Its 12-month average price target of $113.89 has an upside just shy of 20%. (See WMT stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.