Walmart’s (WMT) shares checked out lower on Friday morning despite the world’s largest retailer tapping its long-time executive John Furner to replace Douglas McMillon as its chief.
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McMillon, who has been leading the retail bellwether for about 11 years, plans to retire in January 2026. Furner will assume the role following McMillon’s retirement.
John Furner to Lead Walmart Through Tariff Storm
Furner joined Walmart about 30 years ago and currently heads the multinational retail corporation’s U.S. operations.
His appointment comes at a time when the retail industry is battling the double whammy of the Trump administration’s tariffs on the sector and consumers’ reduced spending, even on discretionary items like food, furniture, clothing, and recreation.
Furner’s appointment also comes ahead of Walmart’s release of its third-quarter results for Fiscal Year 2026, which is expected to land next Thursday, that is, November 20th. Wall Street expects the retail powerhouse’s revenue to rise about 5% from a year ago to $177.47 billion, up from $169.59 billion.
Analysts also anticipate Walmart to report earnings of 60 cents per share — a 3.45% rise from 58 cents during the same quarter last year.
Wall Street Bullish on Walmart
Heading into the results, Wall Street remains confident in Walmart’s shares. TD Cowen analyst Oliver Chen, who raised this WMT price target to $120, believes that the big-box chain operator remains ready to deliver another quarter of strong results. Chen expects the company to surpass analysts’ consensus forecast, riding on growth in its advertising business and income from membership subscriptions.
Furthermore, UBS analyst Michael Lasser expects Walmart’s comparable store sales — sales from stores opened for at least a year during the quarter — to remain steady, with the retailer making more profit from its sales. The five-star analyst also expects external factors to have less significant impact on the company’s earnings during the quarter.
Is Walmart Positioned for the ‘AI Renaissance’?
Both analysts’ ratings come even as Ken Mahoney, CEO of Mahoney Asset Management, sees Walmart as a prime example of a potential beneficiary of the AI boom — or what he calls the “AI renaissance.” Mahoney’s comment comes as the corporation recently teamed up with OpenAI to integrate AI into more parts of its retail offerings.
Is WMT a Good Stock to Buy Now?
Across Wall Street, Walmart’s shares currently boast a Strong Buy consensus rating based on 28 Buys issued by analysts over the past three months. Moreover, the average WMT price target of $116.26 implies a nearly 15% upswing potential from the current trading level.
