Walmart Inc. (NASDAQ:WMT) traded lower on Friday even after beating quarterly earnings and revenue estimates, as investors weighed valuation concerns.
Analysts remained bullish, highlighting Walmart’s expanding ecosystem, AI investments and higher-margin alternative businesses as key long-term growth drivers.
Earnings Snapshot
The company reported fourth-quarter adjusted earnings per share of 74 cents, beating the Street view of 73 cents.
Sales of $190.70 billion rose 5.6% year over year (up 4.9% in constant currency), topping the analyst consensus estimate of $190.43 billion.
Here are the key analyst insights:
- Telsey Advisory Group analyst Joseph Feldman reiterated an Outperform rating on the stock, raising the price forecast from $135 to $140.
- BTIG analyst Robert Drbul reiterated the Buy rating on the stock and a price forecast of $140.
- DA Davidson analyst Michael Baker maintained a Buy rating and raised the price forecast from $135 to $150.
Check out other analyst stock ratings.
Telsey Advisory Group
Feldman expects Walmart to keep leading retail and gaining share, supported by value pricing, tech investments and financial flexibility.
He said Walmart’s push beyond stores and e-commerce builds a broader ecosystem in advertising, merchant services and last-mile delivery.
Feldman noted that those newer businesses carry higher margins and could lift operating income faster than revenue.
Feldman based the target on about a 48-times multiple and his 2026 EPS estimate of $2.91.
BTIG
Analyst Robert Drbul reiterated the Buy rating on the stock, with a price forecast of $140.
Drbul said Walmart has the business drivers to reach its fiscal 2027 sales growth target of 3% to 4%.
He added the company expects operating income to outpace sales growth over the next several years. Drbul pointed to Walmart’s integrated store-and-digital approach as a key support for that outlook.
He said alternative revenue streams, including advertising, membership, marketplace and Walmart Fulfillment Services, should lift profits.
Drbul noted membership and advertising already drive results, and he expects fulfillment services to gain traction and matter more.
DA Davidson
Analyst Michael Baker maintained a Buy rating, raising the price forecast from $135 to $150.
According to Baker, Walmart is turning earlier investments in automation, AI and alternative businesses into fresh margin gains.
He said the company plows that “margin currency” back into price and convenience, then wins share across cohorts.
Within those alternative units, Baker writes that membership, media and marketplace now deliver at least one-third of profits.
He added that the approach keeps Walmart beating its adjusted model of 4% sales growth and 4% to 8% operating profit.
Baker said that above-plan performance showed up in each of the past three years. He expects another year of outperformance in 2026.
Still, Baker noted the biggest objection he hears centers on a 42-times valuation. He called that concern fair, but said Walmart still trades below Costco on that yardstick.
Baker said he will pay a premium as Walmart separates from other retailers with a stronger model.
WMT Price Action: Walmart shares were down 2.70% at $121.50 at the time of publication on Friday, according to Benzinga Pro data.
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