Walmart's Delivery Upgrades Poised to Strengthen Market Reach

Core Insights - Walmart Inc.'s second-quarter fiscal 2026 results highlight delivery as a key growth driver, enhancing digital penetration and market expansion [1] - The company's investments in speed, coverage, and fulfillment integration are redefining convenience at scale [1] E-commerce Performance - Walmart's global e-commerce net sales increased by 25% year over year in the second quarter, with all operating segments achieving over 20% growth [2] - Stronger delivery execution and the role of stores as fulfillment hubs significantly contributed to this momentum [2] Store-Fulfilled Delivery - Store-fulfilled delivery volumes surged nearly 50% year over year, with a notable increase in orders delivered quickly [3] - Approximately one-third of store deliveries were completed within three hours, and about 20% were fulfilled in under 30 minutes, emphasizing Walmart's focus on speed [3] Coverage and Scalability - Walmart currently offers store-fulfilled delivery to over 93% of U.S. households, aiming for 95% coverage by year-end [4] - Nearly half of Sam's Club's e-commerce growth in the second quarter was driven by club-fulfilled delivery, showcasing the model's scalability [4] Competitive Advantage - Walmart's delivery infrastructure supports digital growth and expands its total addressable market by converting stores into fulfillment assets [5] - Achieving nationwide coverage with sub-three-hour delivery speeds solidifies Walmart's competitive advantage in convenience-driven retail [5] Industry Comparisons - Costco is enhancing its same-day delivery service through a partnership with Instacart, allowing for deliveries in as little as one hour [6] - Target is implementing a "stores-as-hubs" strategy to improve fulfillment speed, providing same-day delivery to about 80% of the U.S. population [7] Stock Performance and Valuation - Walmart's stock has increased by 18.5% year to date, slightly below the industry's growth of 19.1% [8] - The company trades at a forward price-to-earnings ratio of 37.74, higher than the industry average of 34.69 [12] Earnings Estimates - The Zacks Consensus Estimate for Walmart's fiscal 2026 and 2027 earnings indicates year-over-year growth of 3.6% and 12.5%, respectively [15]