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Walmart
(NASDAQ:WMT)
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Rating:67Neutral
Price Target:
$128.00
▲(0.39% Upside)
Action:Downgraded
Date:06/06/26
The score reflects strong underlying business performance and constructive guidance/strategic execution, partially offset by thin margins and weaker recent free-cash-flow conversion. The biggest drags are a weak technical setup and an expensive valuation (high P/E with a low yield), with corporate events adding a smaller, mixed impact.
Positive Factors
Omnichannel scale & network
Walmart’s extensive store footprint plus integrated fulfillment and logistics creates durable reach and low-cost distribution. This omnichannel scale drives frequent grocery and consumable purchases, supports ship-from-store economics, and creates barriers to entry for competitors over the next several quarters.
Negative Factors
Structurally thin net margins
A low net margin (~3.1%) limits earnings sensitivity to revenue growth and leaves little buffer for cost inflation, wage pressure, or pricing regulation. This structural constraint makes profitability vulnerable to shocks and constrains the pace at which incremental sales convert to net income over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Omnichannel scale & network
Walmart’s extensive store footprint plus integrated fulfillment and logistics creates durable reach and low-cost distribution. This omnichannel scale drives frequent grocery and consumable purchases, supports ship-from-store economics, and creates barriers to entry for competitors over the next several quarters.
Read all positive factors
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 (WMT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$890.03B
Dividend Yield0.85%
Average Volume (3M)24.36M
Price to Earnings (P/E)39.2
Beta (1Y)0.56
Revenue Growth5.87%
EPS Growth21.68%
CountryUS
Employees2,100,000
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)2.85
Shares Outstanding7,958,079,000
10 Day Avg. Volume24,119,081
30 Day Avg. Volume24,355,734
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 Cap1.13
Enterprise Value/Revenue1.38
Enterprise Value/Gross Profit5.54
Enterprise Value/Ebitda20.85
Forecast
1Y Price Target
$142.46Price Target Upside11.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering27
EPS Forecast (FY)2.9
Revenue Forecast (FY)$752.37B
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:May 21, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call highlighted multiple strong operational and strategic wins: robust eCommerce and fast-delivery growth, marketplace and advertising momentum, AI-driven engagement gains, automation progress, improved merchandise mix, and reiterated guidance. Offsetting these positives were meaningful near-term headwinds from elevated fuel costs (absorbing ~$175M / ~250 bps of operating income), regulatory pricing impacts in pharmacy (~100 bps), and some category noise (eggs/private brands). On balance, the company showed execution, scale, and durable strategic momentum while acknowledging manageable short-term cost pressures.Positive Updates
Strong Top-Line Growth
Consolidated constant-currency sales grew ~5.7% in Q1 (described as nearly 6%), exceeding the top end of guidance by ~120 basis points and adding nearly $10 billion in revenue year-over-year.
Negative Updates
Higher Fuel Costs Pressuring Profits
Higher-than-anticipated fuel costs reduced operating income by approximately $175 million in Q1, representing roughly a 250 basis point drag on operating income growth and creating near-term pressure on profitability.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong Top-Line Growth
Consolidated constant-currency sales grew ~5.7% in Q1 (described as nearly 6%), exceeding the top end of guidance by ~120 basis points and adding nearly $10 billion in revenue year-over-year.
Read all positive updates
Company Guidance
Walmart reiterated its full‑year guidance, forecasting constant‑currency sales growth of 3.5%–4.5% (and saying full‑year sales are likely toward the upper end after a 5.7% Q1), with full‑year operating income growth of 6%–8%; for Q2 they expect constant‑currency sales growth of 4%–5%, operating income growth of 7%–10%, and EPS of $0.72–$0.74 (full‑year EPS guided to $2.75–$2.85). Management noted Q1 adjusted operating income grew ~5% (in line with guidance) despite absorbing roughly $175 million—about a 250 basis‑point drag—from higher fuel costs, and reminded investors the first quarter was expected to be the weakest for operating income with improvement thereafter. The Q2 guide would receive an approximate 90‑basis‑point reported sales benefit and a ~130‑basis‑point reported operating‑income benefit if current FX rates persist; guidance excludes any IEEPA tariff refunds (potential refunds as importer of record are estimated at less than half of 1% of U.S. annual sales).Walmart Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 725.30B | 713.16B | 680.99B | 648.13B | 611.29B | 572.75B |
| Gross Profit | 181.16B | 177.77B | 169.23B | 157.98B | 147.57B | 143.75B |
| EBITDA | 48.14B | 46.47B | 42.01B | 36.38B | 30.09B | 31.35B |
| Net Income | 23.06B | 21.89B | 19.44B | 15.51B | 11.68B | 13.67B |
Balance Sheet | ||||||
| Total Assets | 289.61B | 284.67B | 260.82B | 252.40B | 243.20B | 244.86B |
| Cash, Cash Equivalents and Short-Term Investments | 10.73B | 10.73B | 9.04B | 9.87B | 8.63B | 14.76B |
| Total Debt | 74.18B | 67.09B | 60.11B | 61.32B | 58.92B | 57.32B |
| Total Liabilities | 188.63B | 178.49B | 163.13B | 161.83B | 159.21B | 152.97B |
| Stockholders Equity | 94.33B | 99.62B | 91.01B | 83.86B | 76.69B | 83.25B |
Cash Flow | ||||||
| Free Cash Flow | 12.55B | 14.92B | 12.66B | 15.12B | 11.98B | 11.07B |
| Operating Cash Flow | 40.89B | 41.56B | 36.44B | 35.73B | 28.84B | 24.18B |
| Investing Cash Flow | -27.99B | -26.35B | -21.38B | -21.29B | -17.72B | -6.01B |
| Financing Cash Flow | -11.23B | -13.55B | -14.82B | -13.41B | -17.04B | -22.83B |
Walmart Technical Analysis
Negative
127.50
Price Trends
122.95
Negative
124.08
Negative
116.67
Negative
Market Momentum
-2.74
Positive
35.61
Neutral
16.98
Positive
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 127.5 is above the 20-day moving average (MA) of 117.51, above the 50-day MA of 122.95, and above the 200-day MA of 116.67, indicating a bearish trend. The MACD of -2.74 indicates Positive momentum. The RSI at 35.61 is Neutral, neither overbought nor oversold. The STOCH value of 16.98 is Positive, 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $59.14B | 17.11 | 21.74% | 4.79% | 0.47% | -16.65% | |
73 Outperform | $422.05B | 47.80 | 28.27% | 0.59% | 9.23% | 12.69% | |
73 Outperform | $21.46B | 17.08 | 35.90% | ― | -19.68% | ― | |
67 Neutral | $890.03B | 39.24 | 24.26% | 0.85% | 5.87% | 21.68% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $25.03B | 15.99 | 18.65% | 1.88% | 4.72% | 35.43% | |
53 Neutral | $34.90B | 30.52 | 13.04% | 2.15% | 1.14% | -53.47% |
* Consumer Defensive Sector Average
WMT
Walmart
111.84
14.30
14.65%
COST
Costco
951.67
-29.83
-3.04%
DG
Dollar General
118.17
6.33
5.66%
DLTR
Dollar Tree
124.05
22.14
21.73%
KR
Kroger Company
58.22
-10.18
-14.89%
TGT
Target
130.21
30.51
30.61%
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...
Business Operations and StrategyPrivate Placements and Financing
Walmart Raises $4.2 Billion Through New Debt Offering
Positive
Apr 30, 2026
On April 27, 2026, Walmart entered into a pricing and underwriting agreement with a syndicate of major banks to issue a new series of senior unsecured debt securities across five tranches maturing between 2029 and 2036. The sale of $350 million in...
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...
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.