Walmart's Delivery Upgrades Poised to Strengthen Market Reach

Walmart Inc.’s WMT second-quarter fiscal 2026 results underscore how delivery has become a core growth engine, driving both digital penetration and market expansion. The company’s continued investments in speed, coverage and fulfillment integration are redefining convenience at scale. 

Walmart’s global e-commerce net sales jumped 25% year over year in the second quarter, with every operating segment delivering growth of more than 20%. Much of this momentum was attributed to stronger delivery execution and the expanding role of stores as fulfillment hubs. 

Store-fulfilled delivery remains one of the most striking highlights. Volumes from store delivery jumped nearly 50% year over year, with an increasing share of orders delivered in record time. Per the second-quarter earnings call, around one-third of store deliveries in recent weeks were completed within three hours or less, and about 20% were fulfilled in under 30 minutes, reflecting Walmart’s focus on speed as a differentiating factor in customer experience. 

Walmart currently provides store-fulfilled delivery to more than 93% of U.S. households and is on track to reach roughly 95% by year-end. Moving on, the company’s business shows a similar trajectory. Nearly half of Sam’s Club’s e-commerce growth in the second quarter came from club-fulfilled delivery, underscoring the scalability of the model across formats and customer segments. 

Walmart’s delivery infrastructure is not only supporting digital growth but also expanding the company’s total addressable reach. By converting stores into fulfillment assets and achieving nationwide coverage at sub-three-hour delivery speeds, the omnichannel giant is solidifying its competitive advantage in convenience-driven retail.

Costco and Target Accelerate Speed and Reach

Costco COST is deepening its partnership with Instacart to make same-day delivery faster and more accessible for members. The service delivers warehouse items in as little as one hour in many locations, offering added convenience without sacrificing value. Executive Members now receive a monthly credit toward qualifying same-day delivery orders, reinforcing Costco’s focus on pairing speed with member benefits. By leaning on third-party logistics through Instacart, Costco continues to protect its low-cost warehouse model while enhancing convenience.

Target TGT is advancing its “stores-as-hubs” strategy to drive faster fulfillment, particularly in urban areas. Through Shipt and Drive Up, TGT already provides same-day delivery to roughly 80% of the U.S. population and is now extending next-day delivery to additional metro markets. Target’s model integrates store-based fulfillment, sortation centers, and delivery partnerships to expand reach and improve delivery times efficiently.

WMT’s Stock Price Performance, Valuation & Estimates

Shares of Walmart have soared 18.5% year to date compared with the industry’s growth of 19.1%.

WMT Price Performance Versus Industry

From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 37.74, higher than the industry’s average of 34.69.

WMT Valuation Compared to Industry

The Zacks Consensus Estimate for WMT’s fiscal 2026 and 2027 earnings implies year-over-year growth of 3.6% and 12.5%, 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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