Walmart Inc. WMT
- Market cap
- $826.5B
- P/E
- 37.5×
Follow WMT
Target Price Range
Analyst price targets
Free account| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 21.76 | 27.26 | 30.55 | 34.00 | 42.09 | 39.09 | 45.36 | 51.87 | 79.81 | 102.15 |
Analyst estimates 2027–2029 Powerpack |
Low Price
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| 33.38 | 36.66 | 41.79 | 51.22 | 50.86 | 53.59 | 56.65 | 96.18 | 117.45 | 135.16 |
High Price
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| 2,300,000 | 2,300,000 | 2,200,000 | 2,200,000 | 2,300,000 | 2,300,000 | 2,100,000 | 2,100,000 | 2,100,000 | 2,100,000 |
Employees
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| 0.21 | 0.22 | 0.23 | 0.24 | 0.24 | 0.25 | 0.29 | 0.31 | 0.32 | 0.34 |
Revenue/Emp
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| 485,873 | 500,343 | 514,405 | 523,964 | 559,151 | 572,754 | 611,289 | 648,125 | 680,985 | 713,163 |
Revenue
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| 25.65% | 25.37% | 25.10% | 24.69% | 24.83% | 25.10% | 24.14% | 24.38% | 24.85% | 24.93% |
Gross Margin
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| 20,497 | 15,123 | 11,460 | 20,116 | 20,564 | 18,696 | 17,016 | 21,848 | 26,309 | 29,469 |
EBT
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| 4.22% | 3.02% | 2.23% | 3.84% | 3.68% | 3.26% | 2.78% | 3.37% | 3.86% | 4.13% |
EBT Margin
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| 14,293 | 10,523 | 7,179 | 15,201 | 13,706 | 13,940 | 11,292 | 16,270 | 20,157 | 22,270 |
Net Income
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| 10,080 | 10,529 | 10,678 | 10,987 | 11,152 | 10,658 | 10,945 | 11,853 | 12,973 | 14,203 |
Depreciation
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| 52.23 | 55.69 | 58.54 | 61.28 | 65.84 | 68.38 | 74.81 | 80.24 | 84.69 | 89.34 |
Revenue/Sh
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| 1.47 | 1.10 | 0.76 | 1.74 | 1.59 | 1.63 | 1.43 | 1.92 | 2.42 | 2.74 |
Earnings/Sh
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| 3.40 | 3.15 | 3.16 | 2.95 | 4.25 | 2.89 | 3.53 | 4.42 | 4.53 | 5.21 |
Cash Flow/Sh
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| (1.09) | (1.08) | (1.12) | (1.21) | (1.18) | (1.52) | (2.04) | (2.52) | (2.90) | (3.32) |
Capex/Sh
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| 2.31 | 2.08 | 2.04 | 1.74 | 3.06 | 1.37 | 1.49 | 1.90 | 1.63 | 1.88 |
Free CF/Sh
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| 8.66 | 9.00 | 9.06 | 9.54 | 10.31 | 10.97 | 10.25 | 11.19 | 12.12 | 13.26 |
Book Value/Sh
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| 9,303 | 8,985 | 8,787 | 8,550 | 8,493 | 8,376 | 8,171 | 8,077 | 8,041 | 7,983 |
Shares
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| 15.17 | 32.40 | 42.03 | 21.89 | 29.20 | 28.53 | 33.46 | 28.69 | 40.73 | 45.28 |
PE Ratio
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| 0.43 | 0.64 | 0.55 | 0.62 | 0.71 | 0.68 | 0.64 | 0.69 | 1.16 | 1.39 |
PS Ratio
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| 2.57 | 3.95 | 3.52 | 4.00 | 4.50 | 4.25 | 4.68 | 4.92 | 8.10 | 9.35 |
PB Ratio
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| 0.51 | 0.72 | 0.64 | 0.71 | 0.76 | 0.73 | 0.70 | 0.74 | 1.21 | 1.44 |
EV/Sales
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| 11.41 | 19.20 | 18.42 | 24.93 | 16.33 | 36.44 | 35.16 | 31.31 | 63.04 | 68.55 |
EV/FCF
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| 31,673 | 28,337 | 27,753 | 25,255 | 36,074 | 24,181 | 28,841 | 35,726 | 36,443 | 41,565 |
Op' Cash Flow
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| (10,163) | (9,673) | (9,825) | (10,384) | (10,049) | (12,712) | (16,687) | (20,356) | (23,351) | (26,536) |
Capex
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| 21,510 | 18,664 | 17,928 | 14,871 | 26,025 | 11,469 | 12,154 | 15,370 | 13,092 | 15,029 |
FCF
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| (9,239) | (18,857) | (15,580) | (15,984) | (2,578) | (6,309) | (16,543) | (15,538) | (17,126) | (22,595) |
Working Cap'
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| 45,373 | 45,820 | 57,304 | 53,958 | 48,380 | 42,320 | 44,055 | 46,166 | 44,990 | 50,667 |
Total Debt
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| 38,506 | 39,064 | 49,582 | 44,493 | 30,639 | 27,560 | 35,430 | 36,299 | 35,953 | 39,940 |
Net Debt
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| 80,535 | 80,822 | 79,634 | 81,552 | 87,531 | 91,891 | 83,754 | 90,349 | 97,421 | 105,887 |
Sh' Equity
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| 6.85% | 4.89% | 3.15% | 6.53% | 5.53% | 5.50% | 4.79% | 6.26% | 7.57% | 8.03% |
ROA
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| 11.95% | 10.65% | 10.62% | 10.20% | 11.93% | 13.57% | 10.71% | 13.33% | 13.75% | 12.78% |
ROIC
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| 16.62% | 12.22% | 8.31% | 18.46% | 15.98% | 15.24% | 13.30% | 17.82% | 20.70% | 21.54% |
ROE
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Walmart Inc. peers in Discount Stores
| Company | Market cap | P/E | Compare |
|---|---|---|---|
| COST Costco Wholesale Corporation | $403.5B | 43.8× | Compare |
| TGT Target Corporation | $70.9B | 16.2× | Compare |
| DG Dollar General Corporation | $26.4B | 15.5× | Compare |
| DLTR Dollar Tree, Inc. | $21.4B | 13.9× | Compare |
| Company | Market cap | P/E | Compare |
|---|---|---|---|
| BJ BJ's Wholesale Club Holdings, Inc. | $11.6B | 20.0× | Compare |
| TBBB BBB Foods Inc. | $5.7B | 0.0× | Compare |
| PSMT PriceSmart, Inc. | $5.2B | 32.5× | Compare |
| OLLI Ollie's Bargain Outlet Holdings, Inc. | $5.1B | 19.0× | Compare |
WMT metrics, ten years each
- Revenue
- Net income
- EPS (diluted)
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- EV/FCF
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
Walmart Inc. (WMT) key facts
- Walmart Inc. (WMT) is a Discount Stores company in the Consumer Defensive sector, listed on Nasdaq.
- Walmart Inc.’s revenue for fiscal 2026 (year ended January 2026) was $713.2 billion, up 4.73% from fiscal 2025.
- Net income was $22.3 billion, or $2.74 per share (basic), a net margin of 3.07%.
- As of October 1, 2026, WMT traded at $104.32, a market capitalization of $826.5 billion.
- At that price the stock trades at 37.5× trailing-twelve-month earnings and 1.1× sales.
- Walmart Inc. pays an annual dividend of $1.23 per share, a yield of 1.18%, with a payout ratio of 44.2%.
- Return on equity was 21.5% and debt-to-equity 0.54.
Walmart Inc. (WMT) Latest News
1 Oct
Bank of America analyst Chris Nardone says rising oil and diesel costs are lifting commodity expenses and pushing vendors to raise prices, hinting Walmart (WMT) will need selective price hikes to defend margins, likely slower than peers. Rollbacks across grocery and general merchandise peaked last quarter and should normalize in H2, while an egg-price deflation cycle supports inflation expectations. Inflation metrics remain elevated: August CPI up 3.4% year over year, core CPI 2.9%; PPI rose 5.4%. Fed hiked rates in mid-September to combat inflation. Despite pressure, Walmart’s management described consumer conditions as stable, with solid back-to-school results and limited trade-down behavior, aided by wage growth. The view is that rising costs could challenge margins without a calibrated pricing strategy. Inflation-driven cost pressures and selective price increases could meaningfully press margins and investor sentiment for Walmart in the near term.
Walmart is expanding its digital shelf-label program with three features—Shop to Light, Pick to Light, and Stock to Light—that flash labels to guide customers to products and help staff pick online orders and restock. The initiative, already in 4,300 stores and covering about 90% of store sections, aims to reach all locations by the holiday season. Shop to Light has logged 5 million flashes since a limited rollout began. The system originally enabled automatic price updates; Walmart says it uses human oversight and that prices are not determined by customer data. Regulators and consumer advocates have raised concerns about dynamic pricing, with New Jersey among states considering limits. Walmart CEO John Furner and executive Greg Cathey emphasize convenience, time savings for associates, and broader AI-driven improvements to shopping. Walmart expects the rollout to touch roughly 120,000 items across its stores. Potential efficiency gains and enhanced fulfillment could meaningfully affect margins and competitive positioning, given the scale of deployment and ongoing pricing scrutiny.
Walmart will invest $300 million to build a new fulfillment center in Turtlecreek Township, Ohio, to handle oversized items such as televisions and furniture. The size and timeline weren’t disclosed, but the facility is expected to add more than 300 jobs and to augment Walmart’s Monroe site by bringing inventory closer to customers for faster next-day delivery in the region. The REDI Cincinnati release says Walmart recently bought nearly 100 acres in Warren County to support the project. The center will supplement existing regional capacity as Walmart reshapes its warehouse network, which includes plans for a 1.5 million-square-foot facility in New York and upgrades to Opelousas, Louisiana, while shuttering centers in Massachusetts and Illinois. Expansion of regional capacity for oversized goods could meaningfully affect efficiency and delivery speed, supporting Walmart's network optimization.
Walmart is creating a dedicated Mood & Mind set for mood- and relaxation-focused functional beverages, led by Recess, a pioneer in the category. Recess Mood singles and 4-packs will be available across more than 1,000 Walmart stores, featuring the Pink Lemonade 12oz single as part of the new assortment. The move follows data showing mood-support beverages growing faster than other functional segments and organizes Walmart’s beverage shelves by occasion rather than by product. Walmart cites shopper demand and rapid execution, while Recess founder Ben Witte says the collaboration proves the category’s mass-market potential. The initiative aims to accelerate relaxation-beverage adoption and expand Recess’s distribution alongside its broader line, including non-alcoholic mocktails. Mass-market expansion via a dedicated Mood & Mind set expands distribution and validates the relaxation-beverage category at scale.
Walmart stock has struggled in 2026 amid a cautious consumer and higher fuel costs, down 4.4% year-to-date while the S&P 500 rose about 12%. Q2 FY2027 beat estimates on earnings and revenue and guidance was lifted to 4%–5% for the year, but concerns about $2 billion in fuel headwinds and a rich multiple (forward P/E around 38) limit upside. At Sept. 29, the stock traded around $107.50, well below its Aug. 19 close of $114.03. Analysts’ 12‑month targets average about $130 with a high near $155, implying potential gains if targets are met. Walmart touts steady dividend growth (53 straight years) and growth engines like its membership platform, advertising business, and Sparky AI shopping tool. The piece notes Stock Advisor cautions Walmart isn’t among its top picks, signaling mixed sentiment. Analysts' targets and Walmart's growth engines suggest a moderate near-term impact on sentiment and trajectory.
Kroger posted fiscal 2026 Q2 earnings of $1.09 per share (adjusted), beating estimates, as sales rose 2% to $34.62 billion but missed. Identical sales ex-fuel rose 0.2%, prompting a cut to the fiscal 2026 outlook to 0.2%-0.8% from 1%-2%; adjusted earnings guidance remains $5.10-$5.30. Digital momentum stayed strong—e-commerce up 20% in Q2 (after 19% in Q1), new digital customers up 20%, and record pickup performance with faster store-based fulfillment. When paired with retail media, Kroger delivered profitable e-commerce growth; private-label momentum lifted the mix as Private Selection rose over 14% and first-party data reached 63 million households. Inflation-related headwinds and higher costs weighed on top-line momentum, while Walmart’s own e-commerce growth underscores intensified online competition in grocery. Kroger’s digital strength and private-label growth could pressure Walmart to accelerate its own digital initiatives, modestly affecting near-term market dynamics.
Unwind, a new functional beverage brand from Nowadays founders Justin Tidwell and Anthony Puterman, launches in roughly 1,000 Walmart stores and on TikTok Shop. The 12-ounce sparkling drink combines magnesium L-threonate (Magtein) and L-theanine with zero caffeine, low sugar and calories, available in Berry, Cherry, Citrus, Tropical and Spicy Lime. SRP starts at $2.79 per can and $10.99 for a four-pack. This marks the first phase of a national retail strategy, with broader rollout planned for early 2027, supported by a national marketing campaign including paid media, PR, creator partnerships, sampling events and in-store activations. Unwind, designed for moments to reset in an overstimulated world, builds on the founders’ experience scaling Nowadays to over $100 million in sales. Availability at Walmart and Walmart.com; TikTok Shop to follow in mid-October; learn more at tryunwindco.com. Launch introduces a new, founder-backed functional-relaxation beverage in Walmart, expanding category scope with moderate potential for long-term impact.
Neutonic, a productivity beverage brand co-founded by Chris Williamson and James Smith, is expanding into nearly 1,000 Walmart stores as part of Walmart’s new Mood & Mind beverage set. The rollout introduces Neutonic’s refreshed can design and a four-pack format, along with refrigerated and shelf-stable singles. Four-packs come in Blue Raspberry, Tropical Ice, Strawberry Lemonade and Wild Citrus, with a Tropical Ice-Strawberry Lemonade variety pack also available. Singles start at $2.97 and four-packs at $9.96. The product blends 120 mg natural caffeine with Cognizin Citicoline, L-Theanine, Alpha GPC and Panax Ginseng in a zero-sugar formula aimed at everyday productivity. The Mood & Mind line targets mood, relaxation, social and cognitive needs beyond traditional energy. Walmart executives highlight Neutonic as a fit for the category, with exclusive four-pack options for shoppers. The expansion begins October 3, 2026. Nationwide rollout of a new functional beverage across ~1,000 stores expands Walmart's mood/functional category and could lift short-term sales and traffic.
30 Sep
Numerator finds Prime Big Deal Days on Oct. 6–7 will be highly competitive as economic pressures lift deal-seeking and Walmart becomes the leading competing sale destination to Amazon. Nearly two-thirds of U.S. shoppers plan to browse other retailers’ promotions, with Walmart Fall Deals and Target Circle Deal Days drawing interest. High-income households—roughly 46% of last year’s Prime Big Deal Days spend and about 47% of this year’s Prime Day spend—are concentrating on everyday essentials and private-label items, boosting potential cross-spending at Walmart. Last year, cross-retailer spending at Walmart.com and Target.com totaled about $400 million over the two days. About a quarter of shoppers expect to use AI for deal discovery, with high-income shoppers more likely to use external AI tools. The event could spur early holiday shopping, though everyday products remain the core purchasing category. Walmart stands to gain share and traffic during Prime Big Deal Days, signaling meaningful near-term upside.
Two recession-resilient cash generators are highlighted: Walmart and Waste Management (WM). Walmart posted Q2 FY2027 revenue of $187.9B, with U.S. net sales up 3.5% and global e‑commerce up 23%; advertising revenue rose 38% and membership fees 17%, lifting adjusted operating income 17.4%. Full-year guidance was raised to 4–5% net sales growth and 7–8.5% adjusted operating income growth, underscoring a durable value proposition for downturns as shoppers seek bargains. WM reported Q2 revenue of $6.68B, EBITDA $2.03B, and free cash flow of $1.1B (+34.5%), guiding $3.75–$3.85B FCF for the year. The company also boosted its dividend 14.5% for 2026 (23rd straight increase) and authorized $3B in buybacks, while expanding into recycling automation and renewable natural gas. The piece casts both as long-horizon holds, even as Stock Advisor’s top 10 list omits WM. Durable cash flow and strategic moves in ads, memberships, and sustainability imply a meaningful positive long-term impact on Walmart and WM.
Walmart is expanding digital shelf labels across its stores, replacing paper tags so prices can be updated electronically. It says the labels do not use personal data to set prices, addressing concerns that dynamic pricing could vary by shopper or moment. The system promises lower aisle labor costs, fewer price-accuracy errors at checkout, and fewer penalties from weights-and-measures inspectors, which matters given Walmart’s thin operating margin and roughly $736 billion in annual revenue. But the same technology enabling easy price changes could also enable personalized pricing, drawing regulatory scrutiny and the risk that future rules limit the benefit. With investors already pricing automation and delivery into Walmart, even small efficiency gains matter; a pricing controversy could dampen sentiment more than the savings justify and influence the stock’s trajectory. Regulatory scrutiny and potential for personalized pricing could alter investor sentiment and margins, amplifying impact beyond the immediate cost savings.
Target announced price cuts on roughly 2,000 home, apparel and accessory items for the holiday season, continuing more than 10,000 reductions in the past year to sharpen value against Walmart and Amazon. It pairs lower prices with a growing premium assortment, with new in-store launches from dpHUE, The Laundress, Coast to Coast Kitchen and GROWNSY. The Laundress rollout across 600 stores and Target.com is highlighted as a way to lift margins through owned, exclusive brands that can offset price competition. The piece notes potential margin pressure if traffic and basket size don’t offset lower pricing and flags rising labor and regulatory costs. Target projects $119.0 billion in revenue and $4.6 billion in earnings by 2029, implying about 3.4% revenue growth and modest earnings growth; fair-value estimates vary widely, suggesting investors should weigh multiple viewpoints. Target's price cuts and premium assortment could pressure Walmart’s margins and market share in the near term, signaling meaningful competitive dynamics.
Walmart opened a 48,585-square-foot Neighborhood Market in Crestview, Florida, its seventh Florida store opening since September 2025. The store creates 166 local jobs and offers fresh groceries, pharmacy services, everyday essentials, and a full grocery assortment, with sushi, fresh-cut fruit, ready-to-eat meals, deli, floral services, and custom cake decorating. It supports shopping in-store, pickup, delivery, including Express Delivery in as little as 30 minutes, and features a next-generation design with wider aisles, clear signage, and streamlined checkout. The pharmacy provides prescriptions, immunizations, delivery, counseling, and test-and-treat options. Walmart marked the day with a community celebration and grants totaling $18,500 to six local groups. The move continues Walmart's Florida investment - over the past five years the company has spent more than $1.5 billion in the state and plans 58 remodels in 2026. Expands footprint and supports omnichannel growth in Florida, but impact is localized and not transformative.
Walmart will grant $15 million to Feeding America to strengthen food rescue, movement and distribution across the charitable network as nearly 48 million Americans experience food insecurity. Funds will expand retail food rescue infrastructure at food banks and local agencies, support technology to move food more efficiently, and improve access to nutritious foods. The grant builds on more than two decades of Walmart–Feeding America collaboration and supports Fight Hunger. Spark Change campaigns, which have raised more than $18 million this year (roughly 180 million meals) and, since 2014, helped secure over 2.4 billion meals. Walmart donated 769 million pounds of food to Feeding America in FY2026. The investment is expected to help the network rescue 500 million pounds of food over the next 18 months, increasing capacity to serve families. The donation strengthens brand goodwill and logistical capacity with potential positive sentiment, but has limited near-term financial impact on Walmart's core performance.
Costco (COST) receives a Buy rating with a $1,069 price target from 24/7 Wall St., about 16% upside from a $922.77 reference price. The call hinges on a 92% U.S./Canada renewal rate, 150.4 million cardholders, and five straight quarters of earnings beats, supporting a forward earnings multiple near 40 versus Walmart at 38 and BJ’s at 19. Executive members now drive roughly 76% of sales, making renewal trends the key watch. Q4 results beat: EPS $6.75 vs $6.53, revenue $95.72B vs $94.85B. The model assumes Costco opens 33 warehouses in fiscal 2027, digital sales exceed $33B, and membership growth continues. Bear case flags include slower renewal growth after the prior fee increase, a one-time tariff benefit inflating comparables, and about $7.5B in planned capex. Bull case targets reach $1,149; bears see about $975. Strong Costco metrics and valuation imply notable competitive dynamics with Walmart, potentially affecting Walmart's sentiment and trajectory.
29 Sep
Walmart (WMT) trades about 20% below its 52-week high, near $109, after an August selloff despite a Q2 beat: revenue up 5.9%, adjusted EPS up 19.1% to $0.81, and ecommerce growth of 23%. Tariff refunds flattered profits, but management remains bullish that faster advertising, marketplace and membership engines reinforce the core stores. Full-year adjusted EPS guidance was raised to $2.80–$2.87. Scintilla, Walmart's supplier data platform, is expanding into AI, and an FTC inquiry probes Made in USA claims tied to Sparky. Going forward, profits must grow as tariff refunds fade; Q3 guidance calls for 3.0–3.75% sales growth and 2.0–4.0% operating income growth. A valuation model sets a $128 target (17.5% upside; about 7% annualized), with a premium multiple around 36x. Competitive context includes Costco, Target and Amazon wage pressure, but Walmart's moat of scale and growing ecommerce persists. Margin expansion and growth drivers like advertising and ecommerce could meaningfully change Walmart's earnings power and valuation.
101-year-old Winn-Dixie, part of Southeastern Grocers, is closing 27 stores across Florida, Alabama, Louisiana, and Georgia as it trims its footprint and refocuses on Florida and southern Georgia markets. The move follows a disrupted ownership path—Aldi acquired Southeastern Grocers in 2024, a 2025 buyback by a consortium, and plans to rebrand while selling or closing additional locations (including 32 Winn-Dixie and eight Harveys stores across several Southern states). Aldi also intends to convert about 220 former Winn-Dixie and Harveys stores to its format by 2027. The strategy underscores pressure on mid-size regional grocers from discounters and specialty retailers, with some communities losing a full-service option while others gain remodels or faster access to new banners.Overall, intensified price competition from national players and discount formats continues reshaping regional grocery markets. Localized store closures and a shift toward discount banners signal moderate competitive pressure that could influence Walmart's regional position in affected markets.
Walmart closed at $106.80, down 1.78% as broad markets slid. The move underperformed the S&P 500 (-0.17%), Dow (-0.26%), and Nasdaq (-0.09%). Over the past month, WMT gained 3.68%, beating the Retail-Wholesale sector’s -6.36% and the S&P 500’s -0.24%. Investors eye the next earnings release on November 19, 2026, with expected EPS of $0.63, up 1.61% year over year, and revenue of $186.47 billion, up 3.88%. For the full year, Zacks Consensus sees $2.87 per share on $750.79 billion revenue, up 8.71% and 5.28% respectively. The stock shows a Forward P/E of 37.85 and a PEG of 4.15, well above industry norms (Forward P/E 13.71, PEG 1.88). Walmart holds a Zacks Rank of #3 (Hold). Earnings expectations and valuations create a balanced near-term sentiment but no clear driver for major upside or downside.
Walmart will not use AI to price-discriminate, with Sparky pricing tools not to vary prices by customer identity or purchasing timing. CEO John Furner says income, purchase history, and urgency won’t push up an individual’s price, and shopping tools won’t hide cheaper options while pricing is overseen and tested by employees. Barron’s notes a public boundary around AI pricing to preserve low, consistent prices. The stock fell about 2.6% to $105.86 around 11:30 a.m. ET. The GF Value suggests Walmart trades roughly 1.6% above its fair value estimate of $104.21, prompting questions about whether AI can still deliver value through improved search, recommendations, and inventory decisions without personalized pricing, and thus justify AI spending. Maintains pricing discipline while limiting AI-driven upside from personalized pricing, but AI could still add value in other areas, yielding a moderately balanced impact on outlook.
Costco Wholesale appears to overtaken Walmart as the go-to recession-resilient retailer after Costco's latest results and Walmart's stock slide post-earnings. Costco posted fiscal Q4 revenue of $95.7B, up 11% year over year, with adjusted EPS of $6.60 (consensus $6.55). Excluding fuel and currency, U.S. same-store sales rose 7.2% and total same-store sales 6.7%; average transaction up 3.3%, traffic up 3.3%; membership revenue up nearly 8%, paid memberships 84.1M; membership renewal rate roughly 92% in North America. Costco ended the year with 939 stores and plans ~33 net new stores in fiscal 2027, including international openings. Management flags a valuation premium (forward P/E near 41) and anticipates multiple compression toward 25–35. By contrast, Walmart stock fell over 8% after Q1 and more than 9% after Q2; Costco’s momentum and membership growth suggest it may dominate as a defensive retailer, though valuation limits upside. Shifting competitive dynamics toward Costco could influence Walmart's investor sentiment and near-term performance, though core operations and broader macro factors remain critical.
Costco Wholesale reports strong U.S. momentum in its fourth quarter of fiscal 2026: U.S. comps rose 10.7% year over year, driving overall comparable sales up 9.4%. Excluding gasoline and foreign exchange, adjusted U.S. comps rose 7.2%, supported by 3.2% traffic growth and a 7.3% rise in average ticket (adjusted traffic flat at 3.2%, adjusted ticket up 3.9%). Management says member spending remains resilient, with adjusted comps ex gas/FX running in the 6%-7% range; nonfood categories were the strongest performers as Costco reinforces value and uses selective price reductions and tariff refunds. The result reflects balanced gains in visits and basket size and ongoing member engagement, contributing to domestic sales momentum. In peers’ signals, Walmart U.S. comps rose 2.6% in Q2 FY2027 (transactions +1.5%, ticket +1.1%, e-commerce +24%), while Target posted 3.8% comps in Q2 FY2026 with digital growth of 8.7%, illustrating mixed sector momentum. Walmart shows steady U.S. momentum and strong online growth but no transformative shift in its trajectory.
28 Sep
John Furner, Walmart’s CEO, wrote to customers on Sept. 25 denying rumors of personalized pricing, stating prices are for products, not shoppers. The pledge: no use of personal data to vary prices; Sparky the AI shopping assistant will not raise prices or hide cheaper options; customers control the data they share. Furner linked the promise to Every Day Low Prices and Walmart’s tradition of the same shelf price for everyone. The company also explained digital shelf labels keep store prices in sync with checkout prices and are not used to change prices by time of day or buyer. Regulators are weighing rules on price discrimination based on data; Walmart had recent patents on pricing tech, but says they won’t use them to price differently. Growth drivers cited include Walmart Connect, Walmart Fulfillment Services, and Walmart+, alongside steady revenue. Preserves consumer trust and reduces regulatory risk, strengthening Walmart’s long-term strategy.
Walmart is expanding earnings beyond traditional retail by growing its membership programs. Global membership fee revenues rose 17% year over year in Q2 of fiscal 2027, hitting a record high. Walmart+ in the United States posted double-digit growth with record net adds and its strongest first-half membership growth since launch. U.S. Walmart+ and other membership income rose 15.6%. Membership momentum spread across other markets, with Sam's Club U.S. membership fee revenues up nearly 6% on growing member accounts and higher Plus penetration; international membership fee revenues up 28%, and Sam's Club China reporting record member counts. Walmart also launched Walmart+ in Canada this quarter. Beyond fees, members spend about four times more than non-members, and membership revenues are contributing to improving U.S. e-commerce economics via advertising, delivery density, expedited delivery and automation. Membership is becoming a larger pillar in Walmart's profit mix, even as competition with Costco and Target persists. Growing membership fees and higher member spending expand the earnings mix and could materially lift long-term profitability.
Walmart said U.S. store-fulfillment delivery rose about 40% in its fiscal Q2, and it rolled out 30‑minute service in 33 markets with a $10 fee for Walmart+ members. The fast delivery targets forgotten groceries and other immediate needs, but availability depends on basket size, driver supply, and distance from the store. The bear case argues small baskets still incur picking and delivery costs, and the fee may discourage inexpensive purchases even as it creates direct revenue. Management cited improving e‑commerce economics and overall delivery growth, but no data on average basket size or per‑order profit for the fastest service. The key question is whether speed, fees, and repeat orders can outweigh fulfillment costs and drive value for shareholders. Focuses on whether fast-delivery economics and the $10 Walmart+ fee can cover fulfillment costs for small baskets, signaling potential but unproven profitability.
Walmart will not use AI to set personalized prices or employ dynamic pricing. Pricing decisions will be overseen by humans; the company emphasizes 'price the product, not the person' to protect customer trust. Sparky, Walmart’s GenAI shopping assistant, will aid service but won’t determine prices. The policy aligns with safeguarding personal data and honoring customer choices, while digital shelf labels roll out nationwide to speed price changes and assist restocking and online orders. The stance follows slower quarterly comparable-sales growth and consumer pressure from high gasoline prices, signaling a privacy- and trust-focused approach that relies on human oversight and tech-driven efficiency rather than personalized pricing. Moderate potential impact on pricing strategy and margins, balanced by efficiency gains and trust benefits.
Walmart is denying claims that its new in-store digital price tags and AI tools personalize prices using customers' personal data. CEO John Furner says prices can change and that Walmart lowers prices when savings can be passed to shoppers, or raises them when costs rise, but never charges more based on income, shopping history, or moment of need. He asserts the company 'prices the product, not the person' and that AI is used to serve customers—not to set personalized prices. The denial follows scrutiny over dynamic pricing tied to time of day, demand, location, or item type. Walmart has faced FTC caution over personalized pricing, with regulators warning such practices could violate the law. Separately, Walmart has rolled out digital price tags and QR-driven holiday catalogs that direct shoppers to online pricing, fueling conversations about dynamic pricing strategies. Regulatory scrutiny on personalized pricing and ongoing dynamic-pricing deployments create moderate uncertainty for earnings, balanced by Walmart's denials and trust commitments.
eBay trades at about 21x next-12-month earnings versus Walmart at roughly 39x, yet posts higher growth and margins. Over the past 12 months, eBay revenue rose about 14.7% while Walmart grew about 6.2%; eBay’s operating margin stands around 20.5%, the highest among peers in the group, vs Walmart’s 4.4%. eBay’s take rate is about 14%, with growth driven by focused categories including Pokemon and seller advertising. Management warns Q3 earnings growth may slow to 1–5% year over year, though full-year 2026 guidance targets 10–12% adjusted EPS growth. While earnings multiples suggest eBay is cheaper, its faster growth hinges on a few categories and may not persist; investors should watch Q3 results to gauge whether profit growth will hold. Relative valuation and margin gaps versus eBay may prompt investors to reassess Walmart's premium relative to peers, affecting sentiment more than immediate fundamentals.
John Furner said Walmart does not price differently by customer, time, or income, and Sparky data won’t be used to raise prices or hide discounts. He touts Sparky-driven sales, noting more users and higher average spend per order among Sparky users. Consumer group Groundwork Collaborative points to a 2023 Walmart patent on remote electronic shelf-labels that could enable dynamic pricing based on cart contents or supply-demand signals. Walmart did not respond to inquiries about the patent; Groundwork also cites the Vizio acquisition as a data-collection example. The report frames a tension between commitments to shoppers and potential pricing capabilities that could affect investor sentiment and strategic direction. Pricing capabilities and skepticism could moderately affect investor sentiment and strategy but not current operations.
Walmart (WMT) has attracted notable attention from Zacks.com readers as earnings revisions and near-term guidance drive sentiment. For the current quarter, Walmart is expected to post $0.63 per share, up about 1.6% year over year, with the full-year consensus at $2.87 and next year at $3.22 (up 8.7% and 12.3%, respectively). On the revenue side, the current quarter is pegged at about $186.47 billion, with annual revenues of roughly $750.8 billion and $782.9 billion for the current and next fiscal years. Walmart has beaten consensus estimates in the trailing four quarters, including a recent EPS surprise of 10.96% and a revenue surprise of 0.9%. The stock carries a Zacks Rank of #3 (Hold) and a Value grade of D, implying near-term moves in line with the broader market. Near-term outlook is modest and market-aligned due to earnings revisions and a Hold rating.
Walmart has pledged not to use customers’ personal data, income, shopping history or urgency to determine prices, saying charging more for certain shoppers would violate its everyday low prices (EDLP) model. CEO John Furner outlined three commitments: prices will not vary by shopper identity or time of day; the same rule applies to Walmart’s digital tools, including the Sparky AI shopping assistant; and customer information will be used responsibly with choices respected, letting shoppers opt in for more personalized help. Pricing will continue to be overseen by staff, and the company will monitor and test technology to enforce the commitments. The move follows concerns about data-driven pricing and comes as Seattle weighs local limits on individualized pricing. The digital shelf labels in stores are intended to keep shelf and checkout prices aligned. Non-discriminatory pricing commitments could influence pricing strategy and investor sentiment without immediate financial impact.
Financial Analysis (summary)
Updated
Walmart reported revenue of $713.2 billion in FY2026, net income of $22.3 billion in FY2026, and diluted EPS of $2.73 in FY2026. Revenue growth was 4.73% in FY2026 against FY2025, while diluted EPS growth was 13.3% in FY2026 against FY2025. Free cash flow was $15.0 billion in FY2026.
In Q2 FY2027, revenue was $187.9 billion, operating income was $9.4 billion, and net income was $6.5 billion. Revenue increased 5.94% in Q2 FY2027 against Q2 FY2026, while diluted EPS declined −9.09% in Q2 FY2027 against Q2 FY2026. Gross margin was 26.1% in Q2 FY2027 and operating margin was 4.99% in Q2 FY2027.