Core Insights - Walmart Inc. is set to report its third-quarter fiscal 2026 earnings on November 20, with expectations of solid performance driven by strong momentum in both store and digital channels, an improved merchandise mix, and increasing contributions from membership and advertising [1][10] Revenue and Earnings Estimates - The Zacks Consensus Estimate for third-quarter revenues is $177.1 billion, reflecting a 4.5% increase year-over-year, while the consensus for earnings has risen to 61 cents per share, marking a 5.2% increase from the previous year [2] - Walmart has a trailing four-quarter average earnings surprise of 2.8%, although it experienced a negative earnings surprise of 6.9% in the last reported quarter [2] Earnings Prediction - The Zacks model predicts an earnings beat for Walmart, supported by a positive Earnings ESP and a Zacks Rank of 3 (Hold) [3][4] Factors Influencing Q3 Earnings - Steady demand and market share gains are expected to be reflected in the upcoming results, with consistent performance across income groups and strength in grocery and consumables [5] - Digital sales momentum is significant, with global e-commerce sales growing 25% in the second quarter, driven by store-fulfilled delivery and a robust marketplace [6] - Higher-margin businesses are contributing positively, with advertising revenue increasing by 46% globally and membership income rising over 15% [7] - International markets, including China and Flipkart, are showing strong constant-currency growth, although currency fluctuations may pose challenges [8] Challenges Ahead - Tariff-related cost increases and elevated self-insured liability and workers' compensation costs are key headwinds for the quarter [9][10] Stock Performance - Over the past year, Walmart's stock has increased by 18.9%, outperforming the Zacks Retail – Supermarkets industry growth of 18.3% and the S&P 500's rise of 15.7% [11] - Walmart's stock has surpassed competitors like Kroger, Costco, and Target in terms of stock performance [13] Valuation Metrics - Walmart shares are currently trading at a forward 12-month price-to-earnings ratio of 36.02, above the industry average of 32.78, indicating a premium valuation due to consistent execution and stronger digital profitability [14][16] Investment Outlook - With solid traffic trends, strong omnichannel growth, and expanding higher-margin profit streams, Walmart is positioned for stability and steady growth, despite near-term hurdles [18]

Walmart President and CEO Doug McMillon will retire Jan. 31, 2026, and he will be succeeded by Walmart U.S. CEO John Furner, the company said in a Friday (Nov. 14) press release.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logi ...

John Furner, a lifer at the retailer, grew up in Arkansas and interned at Sam's Club Mexico ...

Core Insights - Walmart Inc.'s International business showed strong performance in Q2 fiscal 2026, with sales increasing by 10.5% year over year in constant currency to $32.7 billion, driven by significant growth in China, Walmex, and Flipkart [1][9] Group 1: Regional Performance - China was the standout market, achieving a remarkable 30.1% growth in constant currency, with over half of sales coming from digital channels, reflecting Walmart's effective integration of physical and online sales [2][9] - Walmex experienced a 6.1% growth, supported by increased customer traffic and strong e-commerce adoption, particularly through pickup and delivery services, alongside festive sales and new store openings [3][9] - Flipkart contributed to growth with a solid performance in marketplace and advertising, leading to a 22% increase in international e-commerce sales, driven by store-fulfilled pickup and delivery [4][9] Group 2: Financial Metrics - Operating income in constant currency decreased by 2.8% as Walmart continued to invest in technology and growth initiatives in key markets like India, Canada, and Mexico, yet the sales momentum across international markets highlighted the segment's importance in Walmart's overall growth [5] - The Zacks Consensus Estimate indicates a projected year-over-year sales growth of 4% and earnings per share growth of 3.6% for the current financial year [10] Group 3: Market Position and Valuation - Walmart's stock has performed well, with shares rising 32% over the past year, outperforming the industry growth of 25.4%, while competitors like Costco and Target showed varied performance [6] - The forward 12-month price-to-earnings ratio for Walmart is 37.93, which is higher than the industry average of 33.04, indicating a premium valuation compared to Target but a discount relative to Costco [7]

Core Insights - Walmart Inc. (WMT) maintains strong investor confidence, reflected in its forward 12-month P/E ratio of 36.49, surpassing the industry average of 33.45 and the broader Zacks Retail–Wholesale sector's 24.50, indicating market belief in its growth potential and operational resilience [1][4][7] Valuation and Market Performance - Walmart's elevated P/E ratio signals expectations of steady earnings growth and improved margins as it leverages scale, technology investments, and innovative strategies [4][7] - Over the past three months, Walmart shares increased by 8.5%, outperforming the industry gain of 8% and the broader sector's 2.5% increase, while the S&P 500 matched Walmart's performance [5][6] Business Strategy and Growth Drivers - The company's diverse business model generates growth from various streams, including digital advertising, memberships, and marketplace operations, which are less reliant on traditional retail sales [9] - Walmart's digital and logistics capabilities have improved significantly, utilizing its store network as fulfillment hubs for faster delivery, while investments in automation and AI enhance productivity [10] Financial Performance - In Q2 of fiscal 2026, Walmart reported a 5.6% increase in total revenues, with comparable sales in Walmart U.S. up 4.6%, driven by grocery strength and health & wellness growth [11] - International sales surged by 10.5%, led by a 30% increase in China, with digital sales growing 25% globally [11] Cost Pressures and Future Outlook - Despite strong performance, Walmart faces cost headwinds, including $450 million in additional liability expenses and pressures from higher wages and technology investments [12] - Management anticipates operating income growth to outpace sales growth for the full year, with consolidated net sales growth expected between 3.75-4.75% [13] Analyst Sentiment - Analysts have raised near-term earnings estimates for Walmart, reflecting confidence in the company's ability to sustain growth [15]

Core Insights - Walmart has entered the real estate sector by acquiring the Monroeville Mall in Pittsburgh for $34 million, with plans for redevelopment that include a new store and a Sam's Club [2][4]. Company Developments - The acquisition was first reported in February, and there is uncertainty among tenants regarding Walmart's intentions for the mall, leading to concerns about their future [2][3]. - Tenants have reported a significant decline in sales since the announcement, with some believing the mall is already closed [3]. Industry Trends - This move marks Walmart's first significant step in a real estate strategy initially announced in 2018, which aims to develop town centers by repurposing parking lots into community spaces [5]. - The trend of retail giants like Walmart and Amazon acquiring struggling malls reflects a broader industry shift, as many malls face declining cash flow and increased competition from eCommerce [6]. - Experts predict a rise in mixed-use developments where malls serve as multifunctional hubs, incorporating residential, office, and healthcare facilities [7].

Core Insights - Ollie's Bargain Outlet Holdings, Inc. reported a 10.6% year-over-year increase in Ollie's Army membership, reaching 16.1 million, which now accounts for approximately 80% of total sales, highlighting the program's significance in driving growth and customer engagement [1][8] - The reimagined Ollie's Days event, aimed at rewarding loyal customers, resulted in a nearly 60% increase in new member acquisitions during the event week and contributed an estimated 100 basis points to comparable store sales for the quarter [2][8] - Ollie's Army members exhibit stronger spending habits, spending about 40% more than non-members, which underscores the program's critical role in the company's sales momentum [3][8] - The company anticipates comparable store sales growth of 3-3.5% for fiscal 2025, reflecting confidence in its strategic initiatives and the strength of its loyal customer base [4] Competitive Landscape - Walmart's membership strategy, focusing on Walmart+ and Sam's Club, saw a 15.3% growth in membership fee income globally, with Sam's Club U.S. achieving 7.6% growth in membership income [6] - Target's Target Circle 360 program led to over 25% growth in same-day delivery and a 4.3% increase in digital comps, with a penetration rate of 16.9% for the Target Circle Card, indicating strong customer engagement [7]

Core Insights - Walmart Inc. is recognized as one of the 12 Best Retail Dividend Stocks to buy currently [1] - The company operates over 5,200 domestic locations and has a strong e-commerce presence, making it highly competitive in various economic conditions [2] - Walmart has significantly reduced its share count since 1995, enhancing the value of remaining shares through stock buybacks [3] - The company has a quarterly dividend of $0.235 per share and a dividend yield of 0.91%, with 52 consecutive years of dividend growth [4]

Core Insights - Walmart Inc. has maintained investor momentum with a stock increase of 21.5% over the past six months, driven by robust strategies and operational excellence, raising questions about whether its strong fundamentals can justify its high valuation moving forward [1][17]. Stock Performance - Over the last six months, Walmart's stock has outperformed the broader industry, which rose by 17.7%, the Zacks Retail – Wholesale sector's growth of 15.1%, and the S&P 500's increase of 19.8% [2]. - Walmart's stock closed at $102.65, just 2.5% below its 52-week high of $105.3, indicating strong upward momentum and price stability [4]. Competitive Positioning - Walmart has outperformed competitors like Kroger, Costco, and Target, with Kroger and Costco shares rising by 1.7% and 8.3%, respectively, while Target's shares fell by 12.4% [3]. Financial Performance - In Q2 fiscal 2026, Walmart's total revenues reached $177.4 billion, a 4.8% year-over-year increase, with comparable sales in Walmart U.S. up 4.6% [9]. - E-commerce sales surged by 25% globally, with Walmart U.S. experiencing a 26% increase, supported by delivery and marketplace gains [10]. Growth Drivers - Walmart's digital transformation has created a fast-growing e-commerce ecosystem, enhancing customer loyalty and operational efficiencies [10]. - High-margin businesses, including advertising and membership income, are contributing to Walmart's growth, with international markets like China and Mexico driving double-digit growth [11]. Future Outlook - For fiscal 2026, Walmart anticipates consolidated net sales growth of 3.75-4.75% and adjusted EPS in the range of $2.52-$2.62, indicating growth from the previous fiscal year [13]. - Analysts have recently upgraded their earnings estimates for Walmart, reflecting optimism about its prospects [15]. Valuation - Walmart is currently trading at a forward P/E ratio of 36.73, higher than the industry average of 32.87, indicating strong investor confidence but also potential risks if growth slows [17].

Core Viewpoint - Walmart's shares declined after the company reported Q2 profits that fell short of expectations, despite strong revenue growth and raised guidance [1][11] Financial Performance - Walmart's revenue increased nearly 5% to $177.4 billion, surpassing the consensus estimate of $176.16 billion [6] - Adjusted EPS rose 1.5% to $0.68, which was below the consensus of $0.74; without $450 million in additional general liability claims, adjusted EPS would have met expectations [9] - Walmart U.S. store sales rose nearly 5% to $120.9 billion, with same-store sales increasing by 4.6% [6] - International sales climbed 5.5% to $31.2 billion, with nearly 10.5% growth in constant currencies [7] - Sam's Club U.S. sales (ex-fuel) increased by 6% to $21.2 billion, with same-store sales climbing 5.9% [8] Cost Management and Tariffs - Tariffs were discussed but had a modest impact on results; gross margin increased by 10 basis points year over year to 24.5% [4] - Walmart absorbed some tariff costs while passing others to consumers, but costs are expected to rise as inventory is replenished at post-tariff rates [5] E-commerce and AI Investments - E-commerce sales surged 26%, contributing to overall strong sales performance [6][12] - Walmart is investing in AI to enhance inventory management and customer interactions, with the first AI agent, Sparky, set to launch [13] Future Outlook - Walmart forecasts Q3 sales growth between 3.75% to 4.75% and has raised its full-year sales guidance to the same range [10] - The company anticipates full-year adjusted EPS between $2.52 to $2.62, up from a prior outlook of $2.50 to $2.60 [10] Consumer Dynamics - Higher-income households are driving Walmart's growth, which is beneficial as tariffs lead to higher prices [14] - Despite some pressure on lower- and middle-income household spending, overall sales remained strong [6]