revenue growth
4–5 pct
FY 2027
official guidance
WALMART INC.
Last · NASDAQ$106.09+0.17 (+0.16%)stale · yahoo · 141h ago
Market cap$844.27B7.96B sh
P/E · TTM38.4fwd 32.8 · eps 2.76
Beta0.60vs S&P 500
Div yield0.93%annual · TTM
52w range
$97.50$135.16
Volume25.0Msession
| Revenue | ₩735.8B |
|---|---|
| Operating income | ₩32.3B |
| Net income | ₩22.1B |
| Free cash flow | ₩13.5B |
| Operating margin | 4.4% |
| Net margin | 3.0% |
| Return on equity | 22.5% |
| Period | TTM 2026-07-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
BuyHoldSell
Walmart delivered strong underlying execution, with $187.9 billion of revenue (+5.9%), global e-commerce growth of 23%, advertising up 38%, and adjusted EPS of $0.81; management raised FY27 sales growth guidance to 4.0%-5.0% and adjusted EPS guidance to $2.80-$2.87. The headline profit growth is less clean than it appears: adjusted operating income growth included a 750-basis-point benefit from roughly $2.9 billion of tariff refunds, while more than $2 billion of incremental fuel costs, price investments, and a softer consumer create meaningful second-half and FY28 execution risk. The business is gaining share and digital economics are improving, but the stock merits a valuation-sensitive buy rather than an unconditional chase.
Near term
Q3 is the key proof point: management guides to 3.0%-3.75% sales growth and adjusted EPS of $0.62-$0.64, while warning that pricing investments will make the full-quarter tariff-refund impact more pronounced. Management asked investors to evaluate Q2 and Q3 together, implying near-term reported profit volatility.
The 11,000 U.S. rollbacks, up from 7,200 at the end of Q1, are intended to accelerate traffic and food share gains. Analysts repeatedly pressed for elasticity, payback periods, supplier funding, and evidence that the investment is working; management cited stronger July and unit/transaction growth but provided no quantified return thresholds or permanence rate.
Consumer pressure is becoming more visible: higher fuel prices affected June trade-offs, general merchandise moderated after a stimulus-related Q1 benefit, and incremental fuel costs are expected to exceed $2 billion for the year.
Health and wellness reduced Walmart U.S. comps by approximately 125 basis points in Q2, and management now expects a similar full-year headwind from maximum-fair-price regulation and brand-to-generic transfers. This is largely a top-line issue, but it obscures the underlying store trend.
Longer term
The strongest structural evidence is digital monetization: Walmart U.S. e-commerce grew 24%, marketplace sales rose 52%, advertising increased 38%, membership-fee revenue grew 17%, and U.S. e-commerce incremental margins reached roughly the high-single-digit to low-double-digit range. Nearly 50% of marketplace volume now uses Walmart Fulfillment Services.
The store network is becoming a strategic fulfillment moat rather than merely a physical-sales channel: stores fulfill about 80% of e-commerce orders, store-fulfilled delivery grew more than 40%, 3,100 stores have some automated freight capability, and more than 50% of fulfillment volume runs through automated facilities.
International rollout of marketplace, fulfillment, advertising, membership, and data platforms could improve returns on prior technology investment. China grew 9.7% in constant currency, while International sales rose 7.9% in constant currency.
Membership and pharmacy cohorts support higher customer lifetime value: management said members spend approximately 4x more than nonmembers, while health-and-wellness customers spend approximately 3x the average Walmart customer. The durability of these claims depends on retention and incremental profitability, which were not fully quantified.
The key long-term thesis is that higher-margin platform businesses can make profit growth materially faster than sales growth. However, the CFO acknowledged that lapping 19% EPS growth next year will be challenging, and Walmart did not commit to a specific future incremental-margin target.
Red flags
The quarter's 17.4% constant-currency adjusted operating-income growth included a 750-basis-point tariff-refund benefit. Management says underlying growth was at the top end of its 7%-10% range, but the refunds are largely received and are being reinvested, leaving the durability of reported profit momentum unresolved.
Management's confidence that lower prices will generate durable share gains rests partly on an unquantified lagged elasticity benefit. When pressed by UBS and Deutsche Bank, it did not disclose rollback-level sales lift, margin return, supplier contribution, or how much of the portfolio meets return thresholds.
FY27 guidance assumes tariff rates and fuel prices persist at current levels, including more than $2 billion of incremental fuel costs. A weaker consumer or sustained fuel inflation could force a difficult choice between further price investment and margin protection.
U.S. inventory rose 6.3%, above enterprise sales growth, attributed to inflation, forward deployment, and fulfillment-node optimization. Management reported no major concerns, but the increase warrants monitoring if general merchandise demand remains soft.
The health-and-wellness explanation is directionally credible but makes comparisons harder: Walmart benefited from roughly 100 basis points of GLP-1-related tailwind in each of the prior two fiscal years, while FY27 receives about half that benefit and faces a 125-basis-point regulatory/deflation headwind.
Sparky usage rose 70% and users spend 40% more per order, but management did not provide adoption, conversion, cost, or profit data, so the AI opportunity remains promotional rather than investment-grade evidence.
Forward outlook
adjusted eps
2.8–2.87 $per share
FY 2027
official guidance
revenue growth
3–3.75 pct
Q3 2027
official guidance
adjusted eps
0.62–0.64 $per share
Q3 2027
official guidance
revenue
—
FY 2027
official guidance
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-03-13
- Current Ratio Low
Red flags
- Current Ratio Low — Current ratio 0.79
Upcoming earnings
1:30 PM UTC+1
Period
Oct 2026
Est. EPS
$0.64
Est. revenue
187.2B
Earnings transcripts
Press & signals
- Satelight
Walmart settles lawsuit over painkiller prescriptions
- Satelight
I am pleased to announce the nomination of Lee Rudofsky to the United States Court of Appeals for the Eighth Circuit! Lee is currently a distinguished Federal District Court Judge in Arkansas. He previously was Solicitor General of Arkansas, and Assistant General Counsel of Walmart. He is a Graduate of Harvard Law School and Cornell University. Lee will be a rock solid defender of the Constitution on the Eighth Circuit. Congratulations Lee! President DONALD J. TRUMP
- Satelight
Trump ups the pressure on US companies in drive to lower prices
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