Core Viewpoint - Walmart Inc. reported strong quarterly earnings, exceeding profit expectations and raising its outlook for the upcoming year, yet its stock price fell [1][2]. Financial Performance - Walmart's third-quarter adjusted earnings were 62 cents per share, surpassing the Street's estimate of 60 cents [2]. - The company raised its adjusted EPS forecast for 2026 to a range of $2.58–$2.63, up from the previous range of $2.52–$2.62 [2]. Analyst Ratings and Forecasts - Analysts maintain a positive outlook on Walmart, citing strong momentum in value, convenience, and higher-margin services like advertising and marketplace [3]. - Bank of America Securities analyst Robert F. Ohmes maintained a Buy rating with a price target of $125, emphasizing Walmart's value proposition and digital convenience [4]. - Goldman Sachs analyst Kate McShane reiterated a Buy rating and increased her forecast from $114 to $121, highlighting Walmart's potential for solid earnings growth [5]. - JPMorgan analyst Christopher Horvers raised his forecast from $128 to $129, noting that results alleviated concerns about consumer health and earnings momentum [6]. - DA Davidson's Michael Baker raised his forecast from $117 to $130, while increasing EPS estimates for 2025 and 2026 to $2.64 and $2.85, respectively [7]. - BTIG analyst Robert Drbul lifted his forecast from $120 to $125, stating Walmart has the potential to achieve its fiscal 2026 sales growth goal of 3% to 4% [8]. - Guggenheim's John Heinbockel raised his forecast from $115 to $120, noting Walmart's strong performance compared to the S&P 500 [9]. - KeyBanc Capital Markets analyst Bradley B. Thomas increased his forecast from $110 to $120, citing growth initiatives and supply chain automation [10]. - RBC Capital Markets analyst Steven Shemesh maintained an Outperform rating with a $116 forecast, highlighting the benefits of Walmart's third-party marketplace [11]. - Telsey Advisory Group's Joseph Feldman raised his forecast from $118 to $130, encouraged by Walmart's expansion beyond core retail and e-commerce [12].

Core Viewpoint - Walmart Inc. reported strong quarterly earnings, exceeding profit expectations and raising its outlook for the upcoming year, yet its stock price fell [1][2]. Financial Performance - Walmart's third-quarter adjusted earnings were 62 cents per share, surpassing the Street's estimate of 60 cents [2]. - The company raised its adjusted EPS forecast for 2026 to a range of $2.58–$2.63, up from the previous range of $2.52–$2.62 [2]. Analyst Ratings and Forecasts - Analysts maintain a positive outlook on Walmart, citing strong momentum in value, convenience, and higher-margin services like advertising [3]. - Bank of America Securities analyst Robert F. Ohmes maintained a Buy rating with a price target of $125, emphasizing Walmart's value proposition and digital convenience [4]. - Goldman Sachs analyst Kate McShane reiterated a Buy rating and increased her forecast from $114 to $121, highlighting Walmart's potential for solid earnings growth [5]. - JPMorgan analyst Christopher Horvers raised his forecast from $128 to $129, noting that results alleviated concerns about consumer health [6]. - DA Davidson's Michael Baker raised his forecast from $117 to $130, while increasing EPS estimates for 2025 and 2026 [7]. - BTIG analyst Robert Drbul lifted his forecast from $120 to $125, expecting operating income to rise faster than sales [8]. - Guggenheim's John Heinbockel raised his forecast from $115 to $120, noting Walmart's strong performance compared to the S&P 500 [9]. - KeyBanc Capital Markets analyst Bradley B. Thomas increased his forecast from $110 to $120, citing growth initiatives and supply chain automation [10]. - RBC Capital Markets analyst Steven Shemesh maintained an Outperform rating with a $116 forecast, highlighting the benefits of Walmart's third-party marketplace [11]. - Telsey Advisory Group's Joseph Feldman raised his forecast from $118 to $130, encouraged by Walmart's expansion beyond core retail [12].

Core Insights - Walmart Inc.'s marketplace business is a significant contributor to its e-commerce growth, with global marketplace sales increasing by 17% in Q2 fiscal 2026, driven by strong U.S. performance and seller engagement [1][8] - The overall e-commerce sales rose by 25% globally and 26% in the U.S., supported by enhanced store-fulfilled delivery services [2] - The expansion of third-party sellers is improving Walmart's product assortment, fulfillment speed, and profitability, with advertising revenue increasing by 46% globally [3][4] Marketplace Performance - U.S. marketplace sales grew nearly 20%, with 44% of marketplace volume now processed through Walmart Fulfillment Services, marking a 250-basis-point increase from the previous year [1][8] - The marketplace growth is enhancing Walmart's digital ecosystem, leading to a more efficient operational structure [2][4] Financial Metrics - Walmart's shares have increased by 28.4% over the past year, outperforming the industry growth of 27.2%, while competitors like Costco and Target showed minimal and negative growth, respectively [5] - The forward 12-month price-to-earnings ratio for Walmart is 36.63, higher than the industry average of 33.25, indicating a premium valuation compared to Target but a discount relative to Costco [6] Sales and Earnings Estimates - The Zacks Consensus Estimate projects a year-over-year sales growth of 4% and earnings per share growth of 3.6% for the current financial year [9] - Current quarter sales are estimated at $177.01 billion, with a year-over-year growth estimate of 4.38% [10]

Core Insights - Walmart Inc.'s second-quarter fiscal 2026 results demonstrate significant growth in its digital ecosystem, with global e-commerce sales increasing by 25% [1][9] - The company's strategic focus on fulfillment speed and convenience has driven this growth, particularly in the U.S. market [2][3] - Walmart's e-commerce business is becoming a central growth engine, raising questions about its future scale [5] E-commerce Performance - E-commerce sales in the U.S. rose by 26%, supported by rapid delivery options and a growing advertising business, Walmart Connect, which increased by 31% [3][4] - Sam's Club U.S. also reported a 26% increase in e-commerce sales, while international operations achieved 22% growth, particularly in markets like China and Flipkart [3][4] Fulfillment and Marketplace Growth - Store-fulfilled delivery in the U.S. surged nearly 50%, with one-third of deliveries completed in under three hours and 20% within 30 minutes [2][9] - Marketplace sales grew by approximately 20%, with 44% of marketplace volume now utilizing Walmart Fulfillment Services, enhancing operational efficiency and third-party seller appeal [4][9] Advertising and Membership Revenue - Walmart's global advertising business experienced a remarkable 46% growth, while membership income rose by 15.3%, contributing to the overall digital revenue mix [4][9] Financial Estimates - The Zacks Consensus Estimate projects a year-over-year sales growth of 4% for Walmart's current financial year, with expected sales of $708.01 billion [8][10] - Earnings per share (EPS) estimates indicate a year-over-year growth of 3.98% for the current year, with an EPS of $2.61 [11][10] Stock Performance and Valuation - Walmart's shares have increased by 27.7% over the past year, closely aligning with the industry growth of 27.4% [12] - The company's forward 12-month price-to-earnings ratio is 34.79, higher than the industry's 32.03, indicating a moderate valuation [12]

Core Insights - Walmart Inc. (WMT) is enhancing its market leadership through a robust omnichannel strategy that integrates its extensive store network with advancing digital capabilities [1][2][10] - The company reported a 22% increase in global e-commerce sales in Q1 FY26, driven by its effective omnichannel approach [2][10] - U.S. e-commerce sales rose by 21%, supported by strong store-fulfilled pickup and delivery, growing marketplace sales, and increased advertising revenues [3][10] - International e-commerce sales grew by 20%, with notable performance at Sam's Club U.S., where e-commerce sales surged by 27% [4][10] E-Commerce Strategy - Walmart is expanding its digital services ecosystem, including Walmart GoLocal, Walmart Fulfillment Services, Walmart+, and Walmart Luminate, to enhance its e-commerce capabilities [5] - The company's leadership in online grocery shopping is a significant contributor to its e-commerce growth [5][6] Competitive Landscape - Target Corporation (TGT) is rapidly growing its e-commerce business through a customer-focused strategy that emphasizes speed and convenience [7] - Amazon (AMZN) maintains dominance in the online retail space, leveraging a vast product assortment and customer loyalty programs like Amazon Prime [8] Financial Performance - Walmart's shares have increased by 3.3% over the past six months, compared to the industry's growth of 4.4% [9] - The company trades at a forward price-to-earnings ratio of 34.55X, above the industry average of 31.82X [12] - The Zacks Consensus Estimate for Walmart's fiscal 2026 earnings indicates a year-over-year growth of 3.6%, with an 11.7% increase projected for fiscal 2027 [13]

Core Insights - Walmart's success is driven by its strong omnichannel strategy, integrating physical stores with digital shopping, leading to a 22% growth in global e-commerce sales in Q1 FY26 [1][7] E-commerce Performance - In the U.S., e-commerce sales increased by 21%, supported by store-fulfilled pickup and delivery, with international sales rising by 20% [2] - Sam's Club U.S. saw a significant 27% increase in e-commerce sales, driven by Club-fulfilled deliveries and pickup services [2] Digital Business Expansion - Walmart is enhancing its supply chain and expanding digital services like Walmart GoLocal, Walmart Connect, Scintilla, Walmart+, and Walmart Fulfillment Services [3] - The company has made strategic investments, including acquiring a stake in Flipkart and owning most of PhonePe, contributing to its growth in online grocery shopping [3] Competitive Landscape - Amazon remains the leading player in e-commerce, focusing on speed and customer loyalty through its Prime program, but Walmart is leveraging its store network to compete effectively, especially in groceries [4] - Target's e-commerce growth is attributed to its focus on convenience, with online sales contributing approximately 20% to its total revenues in Q1 2025 [5] Financial Performance - Walmart's shares have increased by approximately 10.6% year-to-date, slightly below the industry's growth of 10.8% [6] - The company trades at a forward price-to-earnings ratio of 37.08X, above the industry average of 33.95X [8] Earnings Estimates - The Zacks Consensus Estimate for Walmart's 2025 earnings indicates a year-over-year growth of 3.2%, with an 11.6% increase expected in 2026 [9]