Walmart stock soared to a four-week high of $99.19 on August 4, reflecting a 44.81% gain over the past year, fueled by robust earnings and growing consumer confidence in the retail giant. The company, known for its people-led, tech-driven approach, serves approximately 270 million customers weekly across 10,750 stores and eCommerce platforms in 19 countries, generating $681 billion in fiscal year 2025 revenue, according to corporate reports. As U.S. consumers prioritize value amid economic uncertainties, Walmart’s strategic focus on e-commerce, advertising, and operational efficiency has bolstered its market position, despite looming tariff-related price hikes.
In its first-quarter fiscal 2026 earnings, reported on May 15, Walmart posted $165.61 billion in revenue, slightly below Wall Street’s $165.84 billion expectation, but exceeded earnings forecasts with an adjusted 61 cents per share against an anticipated 58 cents. Net income reached $4.49 billion, down from $5.10 billion the previous year, reflecting a 1% headwind from lapping leap day, per CNBC. “We’re balancing investments with improved customer experiences and shareholder returns,” said CEO Doug McMillon, highlighting a 21% surge in U.S. e-commerce sales and a 24% increase in Walmart Connect’s advertising business. Comparable sales rose 4.5% for Walmart U.S. and 6.7% for Sam’s Club, excluding fuel, marking 12 straight quarters of double-digit e-commerce growth.
However, tariff pressures pose challenges. CFO John David Rainey noted that price increases from President Trump’s tariffs, recently lowered to 30% on Chinese imports for 90 days, could begin impacting consumers soon. About one-third of Walmart’s U.S. inventory comes from countries like China, Mexico, and India, with toys and electronics facing significant cost pressures, McMillon explained. Despite this, Rainey told CNBC that consumer behavior remains steady, with a 2.8% rise in average ticket size and a 1.6% increase in transactions, though growth in transactions has slowed for four consecutive quarters.
Analyst sentiment remains largely positive, with 20 of 21 analysts tracked by Visible Alpha rating Walmart a “buy,” though their $109 average price target suggests limited upside from recent highs, per Investopedia. Social media posts on X reflect mixed views, with some users like
@keanxley predicting a potential dip to $94.40, while others highlight bullish trends, noting a 1.43% gain over the past four weeks. Key investment considerations include:
- E-commerce Growth: 21% U.S. online sales increase supports long-term expansion.
- Advertising Revenue: 24% growth in Walmart Connect strengthens margins.
- Tariff Risks: Potential price hikes may affect consumer spending and stock momentum.
Walmart’s next earnings report, set for August 21, is expected to show $175.62 billion in revenue and 73 cents per share, per TradingView. As the retailer navigates tariff uncertainties and invests in AI and sustainability, its stock remains a focal point for investors seeking stability in a volatile market.
Sources: CNBC, Investopedia, Yahoo Finance, corporate.walmart.com, TradingView, X posts
