Walmart (WMT)
NASDAQ:WMT
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Walmart
(NASDAQ:WMT)
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Rating:67Neutral
Price Target:
$133.00
▲(4.31% Upside)
Action:DowngradedDate:03/28/26
The score is driven primarily by strong, improving fundamentals and a positive earnings outlook (ecommerce/advertising/membership and productivity initiatives supporting faster profit growth than sales). Offsetting this are a demanding valuation (high P/E, low yield) and mixed near-term technical signals (negative MACD and below short-term moving averages), which temper upside confidence despite the longer-term uptrend.
Positive Factors
Strong operating cash generation
Walmart's operating cash flow strengthened materially (about $42B in 2026) and free cash flow rebounded, enabling a newly authorized $30B buyback and funding capex for automation. Durable cash generation supports reinvestment, shareholder returns and financial flexibility despite some year-to-year FCF volatility.
Negative Factors
Structurally thin retail margins
Walmart operates with inherently low retail margins, making profitability sensitive to input cost swings, tariffs, and pricing pressures. Even with margin improvement recently, slim margins offer limited buffer versus adverse cost or demand shocks and constrain the company's ability to absorb sustained headwinds.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating cash generation
Walmart's operating cash flow strengthened materially (about $42B in 2026) and free cash flow rebounded, enabling a newly authorized $30B buyback and funding capex for automation. Durable cash generation supports reinvestment, shareholder returns and financial flexibility despite some year-to-year FCF volatility.
Read all positive factors
Walmart (WMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.04T
Dividend Yield0.85%
Average Volume (3M)18.44M
Price to Earnings (P/E)56.0
Beta (1Y)0.64
Revenue Growth4.73%
EPS Growth13.47%
CountryUS
Employees2,100,000
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)0.74
Shares Outstanding7,972,402,300
10 Day Avg. Volume16,476,109
30 Day Avg. Volume18,440,320
Financial Highlights & Ratios
PEG Ratio3.29
Price to Book (P/B)9.55
Price to Sales (P/S)1.33
P/FCF Ratio63.73
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue1.51
Enterprise Value/Gross Profit6.04
Enterprise Value/Ebitda23.10
Forecast
1Y Price Target
$139.04Price Target Upside9.05% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering30
EPS Forecast (FY)2.91
Revenue Forecast (FY)$748.60B
Walmart Business Overview & Revenue Model
Company Description
Walmart Inc. engages in the operation of retail, wholesale, other units, and eCommerce worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarket...
How the Company Makes Money
Walmart makes money mainly by selling goods and services to consumers and businesses through its stores and digital channels, and by earning ancillary income from memberships, advertising, and other services.
1) Retail merchandise sales (primary ...
Walmart Key Performance Indicators (KPIs)
Any
US Net Sales by Category
Breaks down sales within the U.S. across various product categories, offering insight into consumer preferences and the company’s competitive positioning in key retail sectors.
Breaks down sales within the U.S. across various product categories, offering insight into consumer preferences and the company’s competitive positioning in key retail sectors.
Data provided by:
The Fly
The FlyWalmart Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call communicates strong multi-dimensional momentum: robust e-commerce growth, faster profit expansion than sales, meaningful gains from advertising and membership, improved inventory efficiency via automation, and strong cash generation enabling a $30B buyback. Headwinds include tariff and claims-related costs, pharmacy pricing legislation (~100 bps), uneven consumer strength among lower-income cohorts, and ongoing investments in marketplace profitability. Management provided conservative but confident guidance reflecting macro uncertainty. Overall, positive operational and financial progress outweigh the identified challenges.Positive Updates
Quarterly Revenue and Profit Growth
Consolidated revenue up 4.9% in constant currency for the quarter; adjusted operating income grew 10.5% in constant currency, with all three segments growing profits faster than sales.
Negative Updates
Claims, Tariffs and One-Time Costs
Full-year adjusted operating income was achieved despite a ~300 basis point headwind from increased claims expenses and ongoing tariff-related costs; tariffs continue to create timing and cost uncertainty.
Read all updates
Q4-2026 Updates
Positive
Negative
Quarterly Revenue and Profit Growth
Consolidated revenue up 4.9% in constant currency for the quarter; adjusted operating income grew 10.5% in constant currency, with all three segments growing profits faster than sales.
Read all positive updates
Company Guidance
Walmart guided full‑year FY27 constant‑currency sales growth of 3.5%–4.5% with operating income growth of 6%–8% and EPS of $2.75–$2.85, saying ecommerce will be the primary growth driver and that margins should expand from favorable business mix, automation/productivity and lower merchandise headwinds; management reiterated they aim to outperform but are starting conservatively. For Q1 they expect constant‑currency sales of 3.5%–4.5%, operating income growth of 4%–6% and EPS of $0.63–$0.65, and noted if current FX rates persist Q1 would get ~150 bps benefit to reported sales and ~200 bps to OI (full year FX benefit ~70 bps to sales and ~120 bps to OI). Capital allocation/cash flow metrics include FY26 operating cash flow of $42B, free cash flow growth of 18% in FY26, planned FY27 capex of ~3.5% of sales as automation and remodel spending peaks, and a newly authorized $30B share‑repurchase program.Walmart Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
81
Very Positive
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 713.16B | 680.99B | 648.13B | 611.29B | 572.75B |
| Gross Profit | 177.77B | 169.23B | 157.98B | 147.57B | 143.75B |
| EBITDA | 46.47B | 42.01B | 36.38B | 30.09B | 31.35B |
| Net Income | 21.89B | 19.44B | 15.51B | 11.68B | 13.67B |
Balance Sheet | |||||
| Total Assets | 284.67B | 260.82B | 252.40B | 243.20B | 244.86B |
| Cash, Cash Equivalents and Short-Term Investments | 10.73B | 9.04B | 9.87B | 8.63B | 14.76B |
| Total Debt | 67.09B | 60.11B | 61.32B | 58.92B | 57.32B |
| Total Liabilities | 178.49B | 163.13B | 161.83B | 159.21B | 152.97B |
| Stockholders Equity | 99.62B | 91.01B | 83.86B | 76.69B | 83.25B |
Cash Flow | |||||
| Free Cash Flow | 14.92B | 12.66B | 15.12B | 11.98B | 11.07B |
| Operating Cash Flow | 41.56B | 36.44B | 35.73B | 28.84B | 24.18B |
| Investing Cash Flow | -26.35B | -21.38B | -21.29B | -17.72B | -6.01B |
| Financing Cash Flow | -13.55B | -14.82B | -13.41B | -17.04B | -22.83B |
Walmart Technical Analysis
Positive
127.50
Price Trends
125.45
Positive
120.14
Positive
110.36
Positive
Market Momentum
0.59
Negative
56.49
Neutral
52.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WMT, the sentiment is Positive. The current price of 127.5 is above the 20-day moving average (MA) of 124.37, above the 50-day MA of 125.45, and above the 200-day MA of 110.36, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 52.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WMT.
Walmart Risk Analysis
Walmart disclosed 11 risk factors in its most recent earnings report. Walmart reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Walmart Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $448.60B | 55.55 | 28.81% | 0.59% | 8.40% | 12.18% | |
67 Neutral | $1.04T | 56.03 | 23.69% | 0.85% | 4.73% | 13.47% | |
67 Neutral | $58.54B | 12.93 | 26.06% | 4.79% | -1.68% | -8.16% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | $20.47B | 11.56 | 34.83% | ― | -29.62% | ― | |
55 Neutral | $26.58B | 20.87 | 18.66% | 1.88% | 5.20% | 34.26% | |
55 Neutral | $41.18B | 40.33 | 13.04% | 2.15% | 0.35% | -57.81% |
* Consumer Defensive Sector Average
WMT
Walmart
127.59
32.40
34.03%
COST
Costco
994.00
7.71
0.78%
DG
Dollar General
115.82
24.35
26.62%
DLTR
Dollar Tree
98.22
17.33
21.42%
KR
Kroger Company
66.93
-3.02
-4.32%
TGT
Target
127.14
34.48
37.21%
Walmart Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Walmart CTO Adopts Structured Rule 10b5-1 Stock Plan
Positive
Mar 27, 2026
On March 27, 2026, Walmart disclosed that Suresh Kumar, its executive vice president, global chief technology officer and chief development officer, adopted a pre-arranged stock trading plan under Rule 10b5-1 as part of his long-term asset diversi...
Business Operations and StrategyRegulatory Filings and Compliance
Walmart Executives Adopt New Rule 10b5-1 Trading Plans
Neutral
Mar 13, 2026
On March 10, 2026, Walmart disclosed that director and former CEO C. Douglas McMillon adopted a Rule 10b5-1 stock trading plan as part of his long-term diversification and financial strategy. The plan, which replaces an existing trading arrangemen...
Business Operations and StrategyExecutive/Board Changes
Walmart unveils major leadership reshuffle across key divisions
Positive
Jan 16, 2026
Walmart announced a sweeping leadership reshuffle in its core U.S., international and Sam’s Club businesses, reflecting a continued emphasis on omnichannel growth, digital transformation and operational efficiency across its global retail po...
Business Operations and StrategyExecutive/Board Changes
Walmart Adds Tech Executive Shishir Mehrotra to Board
Positive
Jan 8, 2026
On January 8, 2026, Walmart appointed Shishir Mehrotra, CEO of Superhuman and a veteran technology executive, to its Board of Directors, where he will serve on the Compensation and Management Development Committee and the Technology and eCommerce ...
Business Operations and StrategyRegulatory Filings and Compliance
Walmart Executive Adopts Rule 10b5-1 Stock Sale Plan
Neutral
Dec 29, 2025
On December 24, 2025, Walmart disclosed that Chris Nicholas, Executive Vice President and President and Chief Executive Officer of Sam’s Club U.S., adopted a Rule 10b5-1 stock trading plan that will automatically sell 2,900 shares of Walmart...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.