Walmart (WMT) AI Stock Analysis

• Market Cap: $911.47B
• Dividend Yield: 0.83%
• Average Volume (3M): 22.18M
• Price to Earnings (P/E): 40.1
• Beta (1Y): 0.73
• 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: 23,662,035
• 30 Day Avg. Volume: 22,180,166
• 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: 0.96
• Enterprise Value/Revenue: 1.24
• Enterprise Value/Gross Profit: 5.00
• Enterprise Value/Ebitda: 19.47
• 1Y Price Target: $123.63
• Price Target Upside: 9.80% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 25
• EPS Forecast (FY): 2.63
• Revenue Forecast (FY): $712.51B

• Rating: 78 Outperform
• Price Target: $129.00 ▲(14.56% Upside)

Walmart's overall stock score reflects strong financial performance and positive earnings call insights, with robust growth in international markets and e-commerce. The technical analysis shows bullish momentum, though the stock is nearing overbought levels. Valuation suggests the stock is priced for growth, but may not offer immediate value. Recent corporate events support strategic growth initiatives, enhancing the company's long-term prospects.

Positive Factors

E-commerce Growth

Walmart's strong e-commerce growth reflects its successful integration of online platforms, enhancing market reach and customer engagement.

International Expansion

Robust international sales growth indicates Walmart's effective global strategy, strengthening its market position and revenue diversification.

AI and Technology Advancements

Investments in AI and technology enhance operational efficiency and customer personalization, driving long-term competitive advantage.

Negative Factors

Moderation in Low-Income Consumer Spending

Reduced spending by low-income consumers could impact sales growth, particularly in essential goods, affecting overall revenue stability.

Merchandise Category Mix Headwinds

Challenges in merchandise mix can affect profit margins and sales growth, requiring strategic adjustments to align with consumer demand.

CEO Stock Sale

CEO stock sale may signal potential concerns or personal financial planning, but could be perceived negatively by investors regarding future outlook.

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

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: 112.60
• 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 112.6 is below the 20-day moving average (MA) of 112.98, above the 50-day MA of 107.48, and above the 200-day MA of 98.91, indicating a neutral trend. The MACD of 2.40 indicates Positive momentum. The RSI at 53.90 is Neutral, neither overbought nor oversold. The STOCH value of 29.74 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	$911.47B	40.11	24.87%	0.83%	4.34%	17.27%
DG	73 Outperform	$30.22B	23.70	16.45%	1.88%	4.86%	-4.51%
COST	72 Outperform	$379.78B	45.83	30.32%	0.59%	8.34%	9.58%
TGT	70 Neutral	$44.38B	11.89	25.09%	4.61%	-2.16%	-12.66%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DLTR	61 Neutral	$25.42B	-9.09	20.07%	―	-39.27%	-182.36%
KR	56 Neutral	$39.50B	57.16	7.75%	2.15%	-1.77%	-70.83%

Walmart Corporate Events

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.

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.

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.

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.

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.