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Walmart
(NASDAQ:WMT)
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Rating:67Neutral
Price Target:
$113.00
▲(3.22% Upside)
Action:Reiterated
Date:08/21/26
The score is anchored by strong underlying financial performance and a constructive earnings update with raised guidance and accelerating digital/commerce-solution growth. Offsetting these strengths, technicals are notably bearish (price below key moving averages with negative MACD), and valuation is relatively expensive (high P/E with a modest yield), which reduces near-term risk/reward.
Positive Factors
Steady Revenue and Margin Expansion
Sustained revenue growth alongside improved operating and net margins indicates stronger execution and scale benefits. Although profitability remains modest, continued improvement provides a durable foundation for earnings growth over the next several quarters.
Negative Factors
Structurally Thin Profit Margins
Walmart’s high-volume retail model operates with structurally thin margins, so modest changes in labor, transportation, merchandise or pricing costs can materially affect profits. This limits the buffer available when operating conditions weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue and Margin Expansion
Sustained revenue growth alongside improved operating and net margins indicates stronger execution and scale benefits. Although profitability remains modest, continued improvement provides a durable foundation for earnings growth over the next several quarters.
Read all positive factors
Walmart Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Reveals profitability across Walmart’s business segments, showing which areas drive earnings and where there might be operational efficiencies or pressures.
Reveals profitability across Walmart’s business segments, showing which areas drive earnings and where there might be operational efficiencies or pressures.
Data provided by:
The Fly
The FlyWalmart (WMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$825.25B
Dividend Yield0.94%
Average Volume (3M)21.66M
Price to Earnings (P/E)37.4
Beta (1Y)0.55
Revenue Growth6.16%
EPS Growth4.00%
CountryUS
Employees2,100,000
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)2.77
Shares Outstanding7,958,079,000
10 Day Avg. Volume20,083,709
30 Day Avg. Volume21,658,698
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$129.57Price Target Upside18.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering32
EPS Forecast (FY)2.89
Revenue Forecast (FY)$752.45B
Walmart Business Overview & Revenue Model
Company Description
Walmart Inc., established in 1945 and based in Bentonville, Arkansas, operates as a global retail powerhouse, having officially adopted its current name in February 2018, formerly Wal-Mart Stores, Inc. The company's diverse operations, encompassin...
How the Company Makes Money
Walmart makes money primarily by selling goods and services to consumers and businesses through multiple channels, with revenue recognized largely at the point of sale (in-store or online). Its core revenue stream is retail merchandise sales: (1) ...
Walmart Earnings Call Summary
Earnings Call Date:Aug 20, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Nov 19, 2026
Earnings Call Sentiment Positive
The call was broadly positive: management reported solid underlying growth across core retail and high-growth digital businesses (global e-commerce +23%, marketplace +52%, advertising +38%), delivered strong adjusted operating income and EPS growth, and raised full-year sales, operating income and EPS guidance while outlining investments in price, automation and platform expansion. Notable near-term headwinds include pharmacy regulatory impacts (~125bps to U.S. comps), significant incremental fuel costs (> $2B), one-time tariff refund effects on operating income (~750bps) and some SG&A and benefit cost pressures. Despite these challenges, the company emphasized durable share gains, improving incremental margins in e-commerce, and strategic use of tariff refunds to drive customer value. On balance, the highlights (growth, margin improvement, raised guidance, platform scale and membership momentum) outweigh the lowlights, which are largely identifiable headwinds or one-time items.Positive Updates
Enterprise Sales Growth at Top of Guidance
Enterprise net sales grew 5% in constant currency, at the top end of guidance (previously 3.5%–4.5%, raised to 4%–5%), driven by e-commerce, Sam's Club and China.
Negative Updates
Health & Wellness (Pharmacy) Regulatory Headwind
Maximum fair price regulation (MFP) and brand-to-generic deflation created a ~125 basis-point headwind to Walmart U.S. comp sales in Q2; company updated FY'27 estimate of MFP impact to ~125bps and noted a ~200bps net swing year-over-year at the total U.S. comp level driven by health & wellness dynamics.
Read all updates
Q2-2027 Updates
Positive
Negative
Enterprise Sales Growth at Top of Guidance
Enterprise net sales grew 5% in constant currency, at the top end of guidance (previously 3.5%–4.5%, raised to 4%–5%), driven by e-commerce, Sam's Club and China.
Read all positive updates
Company Guidance
Walmart raised full‑year guidance, now targeting enterprise net sales growth of 4%–5% (up from 3.5%–4.5%) and adjusted operating income growth of 7%–8.5% (up from 6%–8%), with fiscal‑year EPS now $2.80–$2.87 (vs. $2.75–$2.85 prior); Q3 expectations are sales growth of 3%–3.75%, operating income growth of 2%–4% (constant currency) and EPS of $0.62–$0.64. Management said tariff refunds of roughly $2.9B (~0.5% of U.S. sales) delivered a ~750‑basis‑point benefit to Q2 operating income and will be largely reinvested this year into price and customer experience (Q2+Q3 reported OI would average ~10% growth per quarter), noted a >$2B headwind from higher fuel costs versus original assumptions, flagged Vibe acquisition/integration as ~20 bps of OI headwind, expects CapEx around 4% of sales with double‑digit free‑cash‑flow growth, anticipates Sam’s Club U.S. and International to be accretive in Q3/Q4, and highlighted a ~125‑basis‑point FY‑’27 Walmart U.S. comp headwind from maximum fair pricing and a >100‑bp Q3 timing headwind (with offsetting Q4 benefit) from Flipkart’s Big Billion Days.Walmart Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 735.84B | 713.16B | 680.99B | 648.13B | 611.29B | 572.75B |
| Gross Profit | 185.66B | 177.77B | 169.23B | 157.98B | 147.57B | 143.75B |
| EBITDA | 42.84B | 46.47B | 42.01B | 36.38B | 30.09B | 31.35B |
| Net Income | 22.08B | 21.89B | 19.44B | 15.51B | 11.68B | 13.67B |
Balance Sheet | ||||||
| Total Assets | 293.91B | 284.67B | 260.82B | 252.40B | 243.20B | 244.86B |
| Cash, Cash Equivalents and Short-Term Investments | 11.53B | 10.73B | 9.04B | 9.87B | 8.63B | 14.76B |
| Total Debt | 73.75B | 67.09B | 60.11B | 61.32B | 58.92B | 57.32B |
| Total Liabilities | 189.41B | 178.49B | 163.13B | 161.83B | 159.21B | 152.97B |
| Stockholders Equity | 98.24B | 99.62B | 91.01B | 83.86B | 76.69B | 83.25B |
Cash Flow | ||||||
| Free Cash Flow | 13.51B | 14.92B | 12.66B | 15.12B | 11.98B | 11.07B |
| Operating Cash Flow | 42.92B | 41.56B | 36.44B | 35.73B | 28.84B | 24.18B |
| Investing Cash Flow | -29.41B | -26.35B | -21.38B | -21.29B | -17.72B | -6.01B |
| Financing Cash Flow | -11.40B | -13.55B | -14.82B | -13.41B | -17.04B | -22.83B |
Walmart Technical Analysis
Negative
109.47
Price Trends
113.33
Negative
119.32
Negative
117.96
Negative
Market Momentum
-1.13
Positive
30.11
Neutral
23.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WMT, the sentiment is Negative. The current price of 109.47 is below the 20-day moving average (MA) of 111.95, below the 50-day MA of 113.33, and below the 200-day MA of 117.96, indicating a bearish trend. The MACD of -1.13 indicates Positive momentum. The RSI at 30.11 is Neutral, neither overbought nor oversold. The STOCH value of 23.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $25.27B | 20.51 | 35.90% | ― | -19.68% | ― | |
80 Outperform | $420.30B | 47.60 | 28.27% | 0.59% | 9.23% | 12.69% | |
68 Neutral | $75.14B | 17.09 | 26.66% | 3.33% | 1.95% | 12.49% | |
67 Neutral | $825.25B | 37.44 | 23.92% | 0.88% | 6.16% | 4.00% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $27.22B | 17.36 | 18.65% | 2.01% | 4.72% | 35.43% | |
53 Neutral | $35.47B | 33.47 | 14.66% | 2.46% | 1.14% | -53.47% |
* Consumer Defensive Sector Average
WMT
Walmart
103.70
8.43
8.85%
COST
Costco
947.74
11.62
1.24%
DG
Dollar General
123.41
13.30
12.08%
DLTR
Dollar Tree
131.48
19.68
17.60%
KR
Kroger Company
57.90
-10.68
-15.58%
TGT
Target
165.44
72.09
77.23%
Walmart Corporate Events
Executive/Board ChangesRegulatory Filings and ComplianceShareholder Meetings
Walmart Shareholders Approve Charter Changes and Director Slate
Positive
Jun 5, 2026
At its June 4, 2026 annual shareholders’ meeting, Walmart investors approved an amendment to the company’s certificate of incorporation to extend Delaware-permitted liability limitations to certain officers, and the company immediately...
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.