Walmart's Marketplace Gains Speed: Next E-Commerce Catalyst?

Walmart Inc.’s WMT marketplace business is emerging as a key driver behind its e-commerce surge. In the second quarter of fiscal 2026, global marketplace sales advanced 17%, reflecting broader seller engagement and stronger integration across regions. WMT’s U.S. marketplace sales grew nearly 20%, with more sellers adopting Walmart Fulfillment Services (“WFS”). Roughly 44% of marketplace volume now flows through WFS, representing a 250-basis-point increase from last year, underscoring improved operational efficiency.

Management noted that this expansion of third-party sellers is enhancing assortment, fulfillment speed and profitability across Walmart’s digital ecosystem. The marketplace growth also complements the company’s broader e-commerce momentum, which rose 25% globally and 26% in the United States, driven by increased demand for store-fulfilled delivery. Nearly one-third of store deliveries were completed in three hours or less, while 20% arrived within 30 minutes, demonstrating how Walmart’s store network underpins its digital scale. 

Marketplace expansion is increasingly shaping the company’s profit structure, supported by contributions from advertising and membership services. Global advertising increased 46%, with Walmart Connect in the United States rising 31%, aided by marketplace sellers using its platform for targeted promotions.

Walmart's growing Marketplace is transforming the company into a comprehensive digital platform, bringing together fulfillment, advertising and membership services. As more sellers and customers embrace the marketplace, Walmart’s digital momentum is clearly picking up, paving the way for a smarter, data-driven approach to retail.

What the Latest Metrics Say About Walmart

Walmart, which competes with Costco Wholesale Corporation COST and Target Corporation TGT, has been a standout performer, with shares rallying 28.4% in the past year compared with the industry’s growth of 27.2%. Shares of Costco have advanced 0.6%, while Target declined 42.1% in the aforementioned period.    
 

From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 36.63, higher than the industry’s 33.25. WMT carries a Value Score of C. Walmart is trading at a premium to Target (with a forward 12-month P/E ratio of 11.27) but at a discount to Costco (45.29). 

The Zacks Consensus Estimate for Walmart’s current financial-year sales and earnings per share implies year-over-year growth of 4% and 3.6%, respectively. 
 

Walmart currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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