Walmart (WMT) AI Stock Analysis

• Market Cap: $1.01T
• Dividend Yield: 0.85%
• Average Volume (3M): 40.05M
• Price to Earnings (P/E): 46.4
• Beta (1Y): 0.69
• Revenue Growth: 4.34%
• EPS Growth: 17.27%
• Country: US
• Employees: 2,100,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Specialty Retail
• EPS (TTM): 0.74
• Shares Outstanding: 7,970,167,000
• 10 Day Avg. Volume: 27,267,287
• 30 Day Avg. Volume: 40,051,668
• PEG Ratio: 3.29
• Price to Book (P/B): 9.55
• Price to Sales (P/S): 1.33
• P/FCF Ratio: 22.88
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 5.83
• Enterprise Value/Ebitda: 21.38
• 1Y Price Target: $138.32
• Price Target Upside: 12.46% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 29
• EPS Forecast (FY): 2.93
• Revenue Forecast (FY): $748.07B

• Rating: 73 Outperform
• Price Target: $139.00 ▲(13.02% Upside)

The score is driven primarily by strong, cash-generative financial performance and a constructive uptrend, reinforced by upbeat FY27 guidance centered on ecommerce, advertising, and productivity-led margin expansion. The main constraint is valuation: the high P/E and low yield reduce upside per unit of risk if growth or margins disappoint.

Positive Factors

Cash Generation

Consistently strong operating cash flow (~$42B in 2026) provides durable funding for capex, automation, share repurchases and discretionary investments. Reliable cash generation reduces dependence on external financing and supports long-term strategic initiatives and capital returns.

E‑commerce & Digital Scale

Rapid, sustainable e‑commerce growth and scale (>$150B, ~25% annual growth) shift Walmart’s revenue mix toward higher-growth, shareable channels. Durable improvements in fulfillment automation and fast delivery create structural advantages in convenience and customer retention over the next several years.

High‑margin Revenue Diversification

Expanding advertising and membership income diversifies revenue toward higher‑margin, recurring sources. These channels improve overall profit mix, monetise customer data, and create sticky revenue streams that can sustain margin expansion even if core retail gross margins remain thin.

Negative Factors

Thin Retail Margins

Retail margins remain structurally tight, limiting the company’s buffer against cost shocks. Even with margin improvement, low absolute margins constrain earnings leverage, making profits sensitive to input cost inflation, tariff shifts, or pricing pressure over the medium term.

Regulatory Headwind (Pharmacy)

Legislative pressure on pharmacy pricing is a lasting structural risk that can shave sales and margins in a high‑volume category. A sustained ~100bps headwind reduces overall profitability and narrows scope for reinvestment, especially given pharmacy’s scale in the business mix.

Debt & Cost Volatility

While leverage is moderate, a large absolute debt burden (~$67B) combined with volatile tariff and claims costs hampers financial flexibility. Persistent cost shocks or rising rates could constrain capital allocation, slow buybacks/capex, and increase refinancing risk over the medium term.

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, hypermarkets, warehouse clubs, cash and carry stores, and discount stores under Walmart and Walmart Neighborhood Market brands; membership-only warehouse clubs; ecommerce websites, such as walmart.com.mx, walmart.ca, flipkart.com, PhonePe and other sites; and mobile commerce applications. The company offers grocery and consumables, including dairy, meat, bakery, deli, produce, dry, chilled or frozen packaged foods, alcoholic and nonalcoholic beverages, floral, snack foods, candy, other grocery items, health and beauty aids, paper goods, laundry and home care, baby care, pet supplies, and other consumable items; fuel, tobacco and other categories. It is also involved in the provision of health and wellness products covering pharmacy, optical and hearing services, and over-the-counter drugs and other medical products; and home and apparel including home improvement, outdoor living, gardening, furniture, apparel, jewelry, tools and power equipment, housewares, toys, seasonal items, mattresses and tire and battery centers. In addition, the company offers consumer electronics and accessories, software, video games, office supplies, appliances, and third-party gift cards. Further, it operates digital payment platforms; and offers financial services and related products, including money transfers, bill payments, money orders, check cashing, prepaid access, co-branded credit cards, installment lending, and earned wage access. Additionally, the company markets lines of merchandise under private brands, including Allswell, Athletic Works, Equate, and Free Assembly. The company was formerly known as Wal-Mart Stores, Inc. and changed its name to Walmart Inc. in February 2018. Walmart Inc. was founded in 1945 and is based in Bentonville, Arkansas.

How the Company Makes Money

Walmart generates revenue primarily through the sale of merchandise in its retail locations and online platforms. Its core revenue streams include grocery sales, general merchandise, and membership fees from Sam's Club. The company benefits from its vast scale and efficient supply chain, allowing it to offer competitive pricing and attract a large customer base. Additionally, Walmart has increasingly integrated e-commerce into its business model, investing in online sales and fulfillment capabilities, which have become significant contributors to its revenue growth. Partnerships with suppliers and technology firms also enhance its operational efficiency and customer engagement, further driving sales.

Walmart Financial Statement Overview

Summary

Fundamentals are solid: steady multi-year revenue growth with improved profitability in 2026, strong ROE (about ~22%), and robust operating cash flow (~$42B). Offsets include structurally thin retail margins and some year-to-year free cash flow volatility, plus sizable absolute debt (~$67B).

Income Statement

Revenue shows steady expansion (from $559B in 2021 to $713B in 2026), with growth slowing materially in 2026 (about +1%). Profitability improved versus 2023–2024, with net margin rising to ~3.1% in 2026 from ~1.9% in 2023, and operating profitability also strengthening. The key weakness is structurally thin retail margins and some volatility in operating margin over the period, which limits downside protection if costs rise or pricing intensifies.

Balance Sheet

Leverage is moderate and fairly stable, with debt-to-equity around ~0.66–0.77 and improving to ~0.67 in 2026. Equity has grown over time (about $81B in 2021 to ~$100B in 2026), supporting balance-sheet resilience. Returns on shareholder capital are consistently strong (roughly mid-teens to low-20s, reaching ~22% in 2026), but the company still carries sizable absolute debt (~$67B in 2026), which can reduce flexibility if rates or earnings turn unfavorable.

Cash Flow

Operating cash generation is solid and improving (about $24B in 2022 to ~$42B in 2026). Free cash flow is volatile—down in 2022 and 2025—but rebounds sharply in 2026, with free cash flow matching net income (about 1.0x), indicating strong cash conversion in the latest period. A watch item is that cash flow strength is not perfectly consistent year-to-year, which can complicate capital return and reinvestment planning.

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	44.03B	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	185.05B	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	41.56B	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

• Technical Analysis Sentiment: Positive
• Last Price: 122.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 122.99 is below the 20-day moving average (MA) of 124.93, above the 50-day MA of 119.03, and above the 200-day MA of 105.08, indicating a neutral trend. The MACD of 2.65 indicates Positive momentum. The RSI at 48.51 is Neutral, neither overbought nor oversold. The STOCH value of 9.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WMT.

Walmart Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COST	74 Outperform	$442.13B	53.36	30.32%	0.59%	8.34%	9.58%
WMT	73 Outperform	$1.01T	46.38	22.97%	0.85%	4.34%	17.27%
DG	73 Outperform	$33.46B	26.25	16.45%	1.88%	4.86%	-4.51%
TGT	72 Outperform	$52.37B	14.03	25.09%	4.79%	-2.16%	-12.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DLTR	61 Neutral	$26.36B	―	20.07%	―	-39.27%	-182.36%
KR	59 Neutral	$43.58B	63.07	7.75%	2.15%	-1.77%	-70.83%

Walmart Corporate Events

Walmart unveils major leadership reshuffle across key divisions

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 portfolio. Effective February 1, 2026, David Guggina, previously Executive Vice President and Chief eCommerce Officer for Walmart U.S., will become Executive Vice President, President and CEO of Walmart U.S., succeeding John Furner, and will receive an increased compensation package tied heavily to performance-based equity. On January 15, 2026, the company said Kathryn McLay, President and CEO of Walmart International, will depart after remaining in her role through January 31, 2026 and serving in a transitional capacity until April 30, 2026; she leaves a legacy of strong growth, digital advances and leadership development across Walmart International and, previously, Sam’s Club U.S. As part of the same realignment, Christopher Nicholas, formerly head of Sam’s Club U.S. and a seasoned Walmart finance and operations executive, was appointed Executive Vice President, President and CEO of Walmart International effective February 1, 2026, with an enhanced, performance-linked pay structure that underscores the strategic importance of the international division. Also effective that date, longtime Walmart executive Latriece Watkins, most recently Executive Vice President and Chief Merchandising Officer for Walmart U.S., was named Executive Vice President, President and CEO of Sam’s Club U.S., with compensation terms similar in structure to those of her peers, signaling Walmart’s intent to sustain momentum in its membership-club business. All three executives are subject to existing non-compete agreements that restrict them from joining competitors and provide two years of salary continuation if they are terminated without cause, reinforcing leadership stability at a time of ongoing transformation for the retailer and its stakeholders.

The most recent analyst rating on (WMT) stock is a Buy with a $129.00 price target. To see the full list of analyst forecasts on Walmart stock, see the WMT Stock Forecast page.

Walmart Adds Tech Executive Shishir Mehrotra to Board

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 Committee. Mehrotra, who previously led Coda and served as YouTube’s Chief Product and Chief Technology Officer, joins the board as Walmart deepens its people-led, tech-powered strategy and positions itself for an “agentic AI” future, with his appointment seen as bolstering the retailer’s capabilities in scaling digital platforms and leveraging advanced technology to enhance service for millions of customers worldwide.

The most recent analyst rating on (WMT) stock is a Hold with a $119.00 price target. To see the full list of analyst forecasts on Walmart stock, see the WMT Stock Forecast page.

Walmart Executive Adopts Rule 10b5-1 Stock Sale Plan

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 common stock on a specified date each month from April 2026 through March 2027, for a maximum of 34,800 shares, as part of his long-term asset diversification, tax and financial planning strategy. The plan, which leaves Nicholas with no discretion over trade timing and is consistent with Walmart’s insider trading policy and stock ownership guidelines, is structured so that he will continue to meet the company’s requirement to hold stock equal to at least five times his base salary, with all transactions to be reported through required securities filings, providing transparency and mitigating concerns over insider trading.

The most recent analyst rating on (WMT) stock is a Buy with a $130.00 price target. To see the full list of analyst forecasts on Walmart stock, see the WMT Stock Forecast page.

Walmart Reports Strong Q3 Results, Raises FY2026 Outlook

On November 19, 2025, Walmart announced its decision to transfer the listing of its common stock and several notes from the New York Stock Exchange to Nasdaq, effective December 9, 2025. This strategic move is expected to streamline its stock trading operations. Additionally, Walmart reported strong third-quarter results on November 20, 2025, with a 5.8% increase in revenue and a 27% growth in global eCommerce. The company raised its outlook for fiscal year 2026, highlighting its robust market position and operational efficiency.

The most recent analyst rating on (WMT) stock is a Buy with a $118.00 price target. To see the full list of analyst forecasts on Walmart stock, see the WMT Stock Forecast page.