Walmart (WMT) AI Stock Analysis

• Market Cap: $949.57B
• Dividend Yield: 0.85%
• Average Volume (3M): 33.50M
• Price to Earnings (P/E): 41.8
• Beta (1Y): 0.71
• 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): 0.62
• Shares Outstanding: 7,970,167,000
• 10 Day Avg. Volume: 22,288,438
• 30 Day Avg. Volume: 33,500,451
• 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: 1.06
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 5.75
• Enterprise Value/Ebitda: 21.39
• 1Y Price Target: $126.87
• Price Target Upside: 6.49% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 26
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $136.00 ▲(14.15% Upside)

The score is driven primarily by strong financial performance and a positive earnings outlook (raised guidance and broad-based e-commerce/advertising growth), supported by bullish technical trend signals. The main constraint is valuation, with a high P/E and low dividend yield, and smaller incremental risk from leadership transition execution.

Positive Factors

E‑commerce and advertising revenue acceleration

Sustained double‑digit e-commerce and rapid advertising growth diversify revenue beyond store sales and increase higher‑margin monetization channels. This strengthens customer data assets, improves conversion economics, and supports durable omnichannel expansion over the next several quarters.

Strong free cash flow improvement

A large rise in free cash flow enhances Walmart’s ability to fund capex, tech investments (drone/AI), and shareholder returns without stressing liquidity. Improved cash generation increases strategic optionality and lowers funding risk during multi‑quarter transformation programs.

Strategic AI / tech partnerships and platform scale

Partnerships with leading AI platforms and board additions of tech executives materially upgrade Walmart’s digital product capability. Embedding AI into shopping experiences and search‑to‑buy workflows can raise conversion, lower CAC and create a durable competitive edge in omnichannel retail.

Negative Factors

Moderation in low‑income consumer spending

Softness in lower‑income cohorts hits Walmart’s core volume drivers and can persist for multiple quarters. Prolonged moderation pressures comparable sales, forces promotional intensity and compresses margins, limiting operating leverage from scale during recovery periods.

Merchandise category mix headwinds

A shift toward stronger health/wellness and away from higher‑margin general merchandise alters gross margin and inventory dynamics. Rebalancing assortment and supply chains to a new mix can weigh on margin sustainability and inventory turns for several quarters.

Leadership transition and reshuffle execution risk

Broad executive changes and a CEO transition increase execution risk during a period of digital and international expansion. New leaders face performance targets tied to transformation; disruption or slower coordination could delay initiatives and impair near‑term strategic momentum.

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

Strong overall fundamentals: healthy profitability (24.91% gross margin, 3.26% net margin), solid leverage profile (0.68 debt-to-equity) with high ROE (25.38%), and sharply improved free cash flow growth (135.97% TTM) supporting liquidity and reinvestment capacity.

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: 119.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 119.14 is above the 20-day moving average (MA) of 116.94, above the 50-day MA of 113.64, and above the 200-day MA of 102.75, indicating a bullish trend. The MACD of 1.38 indicates Positive momentum. The RSI at 61.88 is Neutral, neither overbought nor oversold. The STOCH value of 36.26 is Neutral, 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	$949.57B	41.79	24.87%	0.85%	4.34%	17.27%
COST	74 Outperform	$417.35B	50.37	30.32%	0.59%	8.34%	9.58%
DG	73 Outperform	$31.57B	24.76	16.45%	1.88%	4.86%	-4.51%
TGT	72 Outperform	$47.76B	12.80	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	$23.38B	-8.73	20.07%	―	-39.27%	-182.36%
KR	56 Neutral	$39.77B	57.57	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.

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.