Walmart Inc. (NYSE:WMT) shares are trading lower on Friday.
On Thursday, the company reported second-quarter results and raised its annual outlook.
The retail giant reported adjusted earnings per share of 68 cents, missing the analyst consensus estimate of 74 cents.
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Quarterly sales of $177.40 billion, up 4.8% year over year, outpaced the Street view of $176.16 billion. Total revenues on a constant currency basis increased 5.6%.
Walmart raised its fiscal year 2026 adjusted earnings per share guidance to $2.52–$2.62 from the prior $2.50–$2.60, compared to the $2.62 analyst estimate. Here’s a snapshot of analysts’ reactions to the stock after its earnings report.
Telsey: Profitable Growth Beyond Retail
Analyst Joseph Feldman reiterated the Outperform rating, raising the price forecast from $115 to $118.
Feldman noted Walmart’s 26% ecommerce growth, solid food sales, stable general merchandise, and quicker delivery speeds.
The analyst expects Walmart to keep gaining market share with its value offerings, customer focus, tech use, and financial strength.
Feldman added that Walmart’s push into areas like ads, merchant services, and last-mile delivery should drive faster income growth since these segments are more profitable than core retail.
Feldman lifted its third-quarter EPS estimate to 61 cents from 58 cents (vs. Street at 57 cents) and now expects sales to grow 4.6% to $177 billion, up from $175.5 billion.
JPMorgan: Still a ‘Buy the Dip’ Stock
Analyst Christopher Horvers reiterated the Overweight rating on the stock, lowering the price forecast from $130 to $127.
Horvers said Walmart’s outlook remains unchanged, noting management had already factored in competition like Amazon’s food delivery into its long-term sales and margin plans, keeping its margin and cash flow story intact.
He called Walmart a “buy the dip” name and one of his top low-volatility, high-quality picks, adding the EPS bull case holds with potential for 7%+ U.S. margins and 6%+ international, implying upside toward a 6% enterprise operating margin versus 4.5% expected in 2025.
Bank of America Securities: Ads and Marketplace Drive Margins
Analyst Robert F. Ohmes reiterated the Buy rating with a price forecast of $120.
Ohmes said Walmart’s gross margin is being lifted by higher-margin businesses like digital ads and marketplace fees, which also helped U.S. ecommerce turn profitable in the first quarter.
He added that Walmart’s scale, omni-channel model, more marketplace sellers, and the Vizio deal should keep digital ad revenue growing in any macro setting.
The analyst expects Walmart’s U.S. omni-channel shift to keep building momentum, driving steadier same-store sales, stronger traffic, and ecommerce growth that could support P/E multiple expansion.
The analyst raised fiscal year 2027 earnings per share from $2.90 to $2.94. There is no change in Walmart’s strong momentum, which continues to drive growth, the analyst noted.
RBC Capital Markets: Grocery Edge Strengthens
Analyst Steven Shemesh reiterated the Outperform rating on the stock, with a price forecast of $106.
Shemesh highlighted Walmart’s strong sales momentum and expects grocery price gaps to widen in the second half, driving further market share gains.
The analyst raised his third-quarter constant-currency net sales growth estimate to 4.7% from 3.3% and EPS to 60 cents from 55 cents.
For 2025/2026, Shemesh now models sales growth of 4.6% and 5.0% versus 3.9% and 5.2% earlier.
Goldman Sachs: Rollbacks and Value Strategy
Analyst Kate McShane reiterated the Buy rating, raising the price forecast from $101 to $114.
McShane said Walmart is positioned for solid earnings growth in 2025, driven by market share gains from its strong value and convenience offering, while profitability should improve.
He added that Walmart plans to keep prices steady on essentials like food and back-to-school items and is boosting rollbacks, now totaling about 7,400 across its assortment, 2,000 more than in the first quarter, with grocery rollbacks up 30% year-over-year.
Price Action: WMT shares are trading lower by 0.38% to $97.60 at last check Thursday.
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