Walmart (WMT) AI Stock Analysis

• Market Cap: $917.45B
• Dividend Yield: 0.79%
• Average Volume (3M): 18.80M
• Price to Earnings (P/E): 40.4
• Beta (1Y): 0.72
• Revenue Growth: 4.34%
• EPS Growth: 17.27%
• Country: US
• Employees: 2,100,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 0.62
• Shares Outstanding: 7,970,167,000
• 10 Day Avg. Volume: 21,811,457
• 30 Day Avg. Volume: 18,798,261
• PEG Ratio: 1.56
• Price to Book (P/B): 8.67
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 62.35
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 1.24
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: 19.47
• 1Y Price Target: $122.00
• Price Target Upside: 5.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 26
• EPS Forecast (FY): 2.63
• Revenue Forecast (FY): $712.45B

• Rating: 78 Outperform
• Price Target: $122.00 ▲(5.99% Upside)

Walmart's overall stock score of 78 reflects its strong financial performance and positive earnings call highlights. The company's strategic initiatives in e-commerce and technology position it well for future growth. However, the high P/E ratio suggests potential overvaluation, and technical indicators point to a cautious outlook due to approaching overbought conditions.

Positive Factors

E-commerce Growth

Walmart's significant growth in e-commerce and advertising highlights its successful digital transformation, enhancing its competitive position in the retail market.

International Expansion

Strong international sales growth, especially in China and India, demonstrates Walmart's effective global strategy and potential for future revenue expansion.

Tech and AI Advancements

Walmart's investment in AI and technology partnerships improves operational efficiency and customer engagement, supporting long-term growth and innovation.

Negative Factors

Low-Income Consumer Spending

Reduced spending by low-income consumers could impact Walmart's sales growth, as it relies heavily on this demographic for a significant portion of its revenue.

Merchandise Category Mix

Challenges in merchandise category mix, with stronger performance in health and wellness, could affect overall profitability and sales balance.

Debt Management

While currently manageable, Walmart's debt levels require careful monitoring to ensure financial flexibility and avoid potential strain on cash flow.

Walmart Business Overview & Revenue Model

Company Description

Walmart Inc. is a leading global retail corporation headquartered in Bentonville, Arkansas, operating a chain of hypermarkets, discount department stores, and grocery stores. Founded in 1962, Walmart has grown to become one of the largest retailers in the world, serving millions of customers weekly through its various formats, including Walmart Supercenters, Walmart Neighborhood Markets, and Sam's Club warehouses. The company offers a wide range of products, including groceries, electronics, clothing, household goods, and health and beauty products, as well as e-commerce services through its online platform.

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

Walmart exhibits strong financial performance with consistent revenue growth, robust profitability, and efficient cash management. The income statement reflects stable growth, the balance sheet shows a well-managed capital structure, and the cash flow statement highlights significant cash generation and liquidity.

Income Statement

Walmart's income statement shows strong performance with a consistent revenue growth rate of 1.43% in the TTM period. The company maintains a healthy gross profit margin of 24.91% and a net profit margin of 3.26%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also robust at 4.42% and 6.39%, respectively, reflecting operational efficiency. Overall, Walmart demonstrates stable and profitable growth in its income statement metrics.

Balance Sheet

Walmart's balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.68, indicating a balanced approach to leveraging. The return on equity is impressive at 25.38%, showcasing strong profitability relative to shareholder equity. The equity ratio stands at 33.29%, suggesting a stable capital structure. While the company manages its debt well, continuous monitoring of leverage is advisable to maintain financial stability.

Cash Flow

The cash flow statement reveals a significant improvement in free cash flow growth at 135.97% in the TTM period, highlighting enhanced cash generation capabilities. The operating cash flow to net income ratio is 0.35, and the free cash flow to net income ratio is 0.79, indicating strong cash flow relative to earnings. Walmart's cash flow metrics demonstrate robust liquidity and efficient cash management, supporting its operational and strategic initiatives.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	680.99B	648.13B	611.29B	572.75B	559.15B
Gross Profit	169.23B	157.98B	147.57B	143.75B	138.84B
EBITDA	42.01B	36.38B	30.09B	31.35B	34.03B
Net Income	19.44B	15.51B	11.68B	13.67B	13.51B
Balance Sheet
Total Assets	260.82B	252.40B	243.20B	244.86B	252.50B
Cash, Cash Equivalents and Short-Term Investments	9.04B	9.87B	8.63B	14.76B	17.74B
Total Debt	60.11B	61.32B	58.92B	57.32B	63.25B
Total Liabilities	163.13B	161.83B	159.21B	152.97B	164.97B
Stockholders Equity	91.01B	83.86B	76.69B	83.25B	80.92B
Cash Flow
Free Cash Flow	12.66B	15.12B	11.98B	11.07B	25.81B
Operating Cash Flow	36.44B	35.73B	28.84B	24.18B	36.07B
Investing Cash Flow	-21.38B	-21.29B	-17.72B	-6.01B	-11.92B
Financing Cash Flow	-14.82B	-13.41B	-17.04B	-22.83B	-16.12B

Walmart Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 115.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 115.11 is above the 20-day moving average (MA) of 106.66, above the 50-day MA of 104.95, and above the 200-day MA of 98.01, indicating a bullish trend. The MACD of 2.90 indicates Negative momentum. The RSI at 74.03 is Negative, neither overbought nor oversold. The STOCH value of 95.45 is Negative, 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
WMT	78 Outperform	$917.45B	40.37	24.87%	0.79%	4.34%	17.27%
TGT	70 Neutral	$41.74B	11.19	25.09%	4.90%	-2.16%	-12.66%
DG	69 Neutral	$29.14B	22.86	16.45%	1.88%	4.86%	-4.51%
KR	69 Neutral	$41.56B	57.61	7.76%	2.14%	-1.77%	-70.80%
COST	68 Neutral	$397.02B	50.65	30.69%	0.57%	8.17%	9.92%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DLTR	60 Neutral	$24.35B	―	20.07%	―	-39.27%	-182.36%

Walmart Corporate Events

Walmart’s Strong Q3 Performance and Raised FY26 Outlook

Walmart Inc., a leading global retailer, operates in the omnichannel retail sector, providing a wide range of products and services both in physical stores and online across 19 countries. In its latest earnings report, Walmart announced a 5.8% increase in revenue for the third quarter, with eCommerce sales rising by 27% globally. The company also reported a slight decrease in operating income, primarily due to a non-cash share-based compensation charge, but adjusted operating income rose by 8% in constant currency terms. Walmart’s U.S. segment showed strong sales growth driven by eCommerce, while its international segment benefited from significant sales increases in markets like Flipkart and China. Sam’s Club also reported growth, particularly in eCommerce and membership income. Looking ahead, Walmart has raised its outlook for fiscal year 2026, expecting growth in net sales and adjusted operating income, indicating confidence in its strategic initiatives and market position.

Walmart Earnings Call Highlights Robust Growth and Strategic Advances

Walmart’s latest earnings call paints a picture of robust growth and strategic advancements, despite facing some challenges. The sentiment during the call was largely positive, driven by significant growth in sales and profits, particularly in international markets and e-commerce. However, the company acknowledged challenges such as a moderation in spending among low-income consumers and ongoing merchandise category mix headwinds.

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.

Walmart Announces CEO Transition Effective February 2026

On November 11, 2025, Walmart announced that Doug McMillon would retire as President and CEO on January 31, 2026, transitioning to an executive officer role until January 31, 2027. John Furner, who has been with Walmart since 1993 and served as CEO of Walmart U.S. since 2019, will succeed McMillon as President and CEO effective February 1, 2026. This leadership change is expected to guide Walmart into a new era of growth, focusing on digital innovation and AI, while maintaining its commitment to customers and associates.

The most recent analyst rating on (WMT) stock is a Buy with a $111.00 price target. To see the full list of analyst forecasts on Walmart stock, see the WMT Stock Forecast page.

Walmart Appoints Dwayne Milum as Senior VP

On October 22, 2025, Walmart announced the appointment of Dwayne Milum as Senior Vice President and Controller, effective February 1, 2026. Milum, who has been with Walmart since 2004 and served in various roles, will succeed David Chojnowski, who will transition to a new role. Milum’s compensation package includes a base salary of $600,000, annual cash incentives, and equity awards. His promotion also includes a Non-Compete Agreement, ensuring he does not join competing businesses for a year post-employment.

The most recent analyst rating on (WMT) stock is a Buy with a $111.00 price target. To see the full list of analyst forecasts on Walmart stock, see the WMT Stock Forecast page.

Walmart Executive Initiates Stock Trading Plan

On September 22, 2025, Walmart announced that Donna Morris, Executive Vice President and Chief People Officer, initiated a stock trading plan under Rule 10b5-1 for long-term asset diversification and financial planning. The plan, which adheres to Walmart’s Insider Trading Policy, involves selling up to 148,665 shares of common stock after taxes, starting January 13, 2026, with the plan expiring by July 13, 2026, or upon the sale of all applicable shares. Morris will maintain compliance with Walmart’s stock ownership guidelines, ensuring her holdings remain at least five times her base salary.

The most recent analyst rating on (WMT) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Walmart stock, see the WMT Stock Forecast page.

Walmart EVP Daniel Danker Enters Stock Trading Plan

On September 19, 2025, Walmart announced that Daniel Danker, Executive Vice President, AI Acceleration, Product and Design, has entered into a stock trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934. This plan is part of Mr. Danker’s long-term asset diversification and financial planning strategy, aligning with Walmart’s Insider Trading Policy and stock ownership guidelines. The plan involves selling shares after taxes are withheld from the vesting of restricted shares in January and August 2026, with transactions to be publicly disclosed as required by law.

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 CFO Implements Stock Trading Plan

On September 5, 2025, Walmart announced that its Executive Vice President and CFO, John David Rainey, has entered into a stock trading plan under Rule 10b5-1 for asset diversification and financial planning. The plan, compliant with Walmart’s Insider Trading Policy, allows for the sale of up to 40,000 shares in early 2026, with transactions to be publicly disclosed as required by law.

The most recent analyst rating on (WMT) stock is a Buy with a $110.00 price target. To see the full list of analyst forecasts on Walmart stock, see the WMT Stock Forecast page.

Walmart Inc. Reports Strong Sales Amid Profit Challenges

Walmart Inc.’s recent earnings call conveyed a generally positive sentiment, underscored by robust sales growth in e-commerce and international markets, as well as significant advancements in AI and technology. However, the company faced challenges with profit growth due to increased claims expenses and tariff-related cost pressures. Despite these hurdles, Walmart remains optimistic about its strategic initiatives and future growth prospects.

Walmart Reports Strong Revenue Growth Amid Challenges

Walmart Inc., a leading global omnichannel retailer, operates in the retail industry, offering a wide range of products and services through its physical stores and digital platforms across 19 countries. In its latest earnings report, Walmart reported a 4.8% increase in revenue, with a significant 25% growth in global eCommerce sales, despite an 8.2% decrease in operating income. The company also raised its net sales and EPS outlook for fiscal year 2026, reflecting strong performance across its business segments.