Walmart's 22% E-Commerce Sales Jump: Can It Keep Up the Pace?

Walmart Inc. WMT continues to make impressive strides in the e-commerce space, reporting a 22% jump in global e-commerce sales in the first quarter of fiscal 2026. The growth comes on the back of its robust omnichannel strategy, which blends the strengths of its physical store network with expanding digital capabilities.

The retail giant has been relentless in optimizing store-fulfilled pickup and delivery services, which have emerged as key growth drivers. With nearly 93% of U.S. households covered under its under-3-hour store-fulfilled delivery network as of the most recent quarter, Walmart is delivering both speed and convenience to a digitally savvy consumer base.

Walmart U.S. saw a 21% rise in e-commerce sales, fueled by marketplace expansion, advertising and a surge in store-fulfilled pickup and delivery orders. Meanwhile, Sam’s Club U.S. e-commerce sales rose 27%, led by triple-digit growth in club-fulfilled delivery and solid gains in pickup services. International markets also posted a 20% increase in digital sales, reflecting growing demand for online shopping options.

Strategic investments in data analytics, tech partnerships and logistics are helping Walmart stay ahead in the competitive retail landscape. Its ability to leverage physical stores as e-commerce fulfillment hubs is proving to be a game-changer.

As consumer preferences increasingly lean toward speed, convenience and personalization, Walmart appears well-positioned to sustain its online momentum. However, maintaining this pace will require ongoing innovation, operational excellence and strategic agility in a fast-evolving retail environment.

How Amazon & Target are Competing With Walmart in the E-Commerce Race

Walmart faces stiff competition in the e-commerce space from major players like Amazon AMZN and Target Corporation TGT, both of which continue to expand their digital capabilities to attract online shoppers.

Amazon is the top player in online shopping, thanks to its huge product range, fast delivery and strong marketplace with many third-party sellers. Its strategy focuses on speed, convenience and keeping customers loyal through Prime, which offers free shipping and other perks. Amazon keeps investing in better technology, AI and faster fulfillment.

Target’s e-commerce business is growing fast because of its focus on making shopping easy and quick. It offers services like same-day delivery and curbside pickup, using their stores to help fulfill online orders. Target relies on its unique brand and loyal shoppers to compete with Walmart’s size and low prices.

WMT’s Price Performance, Valuation & Estimates

Shares of Walmart have gained 15.5% in the past three months compared with the industry’s growth of 13.2%.

From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 36.07X, above the industry’s average of 32.67X.

The Zacks Consensus Estimate for WMT’s fiscal 2026 earnings implies year-over-year growth of 3.2%, whereas its fiscal 2027 earnings estimate suggests a year-over-year uptick of 11.6%. Both estimates have remained stable in the past 30 days.

WMT stock 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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