WMT's U.S. Segment Momentum: Are 4.6% Comp Sales Sustainable for FY27?

Walmart Inc. WMT ended fiscal 2026 with solid momentum in its Walmart U.S. segment, reporting fourth-quarter comp sales growth of 4.6%, excluding fuel. Fiscal 2026 also delivered 4.6% comp growth on an excluding fuel basis, following 4.5% growth last year. The consistency across periods highlights steady underlying demand in the company’s largest segment.

In the fourth quarter, comparable sales growth was driven by a combination of higher transactions and growth in the average ticket. Traffic remained positive, reflecting continued customer engagement and market share gains. Grocery remained a driver, with strength in food and consumables. Health and wellness contributed to growth, supported by pharmacy. General merchandise was also positive, marking continued stabilization and improvement in discretionary categories.

E-commerce remained an important component of the comp sales figure. Management noted ongoing growth in pickup and delivery, reinforcing the role of omnichannel execution in supporting U.S. momentum.

The key question for fiscal 2027 is whether the 4.6% growth rate can be sustained. Management guided consolidated net sales growth of 3.5% to 4.5% in constant currency for fiscal 2027. While this outlook is company-wide rather than specific to Walmart U.S., it provides a reference point when considering the durability of mid-single-digit comp sales growth in the domestic segment.

With two consecutive years of mid-single-digit comp sales growth, excluding fuel, Walmart U.S. enters fiscal 2027 on a solid base. Sustaining that level will depend on maintaining positive traffic, balanced ticket growth and continued category strength across grocery, health and wellness, and general merchandise, alongside ongoing digital integration within the core business.

What the Latest Metrics Say About Walmart

Walmart, which competes with Costco Wholesale Corporation COST and Target Corporation TGT, has seen its shares rally 31.3% in the past year compared with the industry’s growth of 29.8%. Shares of Costco and Target have declined 4.9% and 7.2%, respectively, in the aforementioned period.

From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 42.18, higher than the industry’s 38.75. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 14.96) while trading at a discount to Costco (46.75). 

The Zacks Consensus Estimate for Walmart’s current fiscal-year sales and earnings per share implies year-over-year growth of 4.5% and 9.9%, 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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