Walmart (WMT) AI Stock Analysis

Walmart

(BMV:WMT)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Scale and ProfitabilityWalmart’s enormous revenue base and improving operating and net margins indicate that scale, pricing discipline, and operating efficiency are translating into stronger earnings power. Continued margin improvement gives the company more capacity to invest in stores, automation, digital growth, and customer value over the next several quarters.

Negative Factors

Structurally Thin MarginsWalmart’s value-focused retail model operates with structurally narrow net margins, so relatively modest cost increases, price investments, or unfavorable merchandise mix can have an outsized effect on profit. This limits earnings protection during operating pressure and makes sustained productivity gains important for long-term returns.

Walmart (WMT) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 982.90B
Dividend Yield: 0.71%
Average Volume (3M): 3,684
Price to Earnings (P/E): 44.6
Beta (1Y): 0.16
Revenue Growth: -4.16%
EPS Growth: -5.82%
Country: Mexico
Employees: 2,100,000
Sector: Consumer Defensive
Sector Strength: 62
Industry: Discount Stores

Walmart Business Overview & Revenue Model

Company Description

Walmart Inc., established in 1945 and based in Bentonville, Arkansas, operates as a global retail powerhouse, having officially adopted its current name in February 2018, formerly Wal-Mart Stores, Inc. The company's diverse operations, encompassing r...

Walmart Earnings Call Summary

Earnings Call Date:Aug 19, 2026(Q2-2027)|% Change Since:19.87%|Next Earnings Date:Nov 18, 2026

Earnings Call SentimentPositive

The call was broadly positive: management reported solid underlying growth across core retail and high-growth digital businesses (global e-commerce +23%, marketplace +52%, advertising +38%), delivered strong adjusted operating income and EPS growth, and raised full-year sales, operating income and EPS guidance while outlining investments in price, automation and platform expansion. Notable near-term headwinds include pharmacy regulatory impacts (~125bps to U.S. comps), significant incremental fuel costs (> $2B), one-time tariff refund effects on operating income (~750bps) and some SG&A and benefit cost pressures. Despite these challenges, the company emphasized durable share gains, improving incremental margins in e-commerce, and strategic use of tariff refunds to drive customer value. On balance, the highlights (growth, margin improvement, raised guidance, platform scale and membership momentum) outweigh the lowlights, which are largely identifiable headwinds or one-time items.

Positive Updates

Enterprise Sales Growth at Top of Guidance

Enterprise net sales grew 5% in constant currency, at the top end of guidance (previously 3.5%–4.5%, raised to 4%–5%), driven by e-commerce, Sam's Club and China.

Negative Updates

Health & Wellness (Pharmacy) Regulatory Headwind

Maximum fair price regulation (MFP) and brand-to-generic deflation created a ~125 basis-point headwind to Walmart U.S. comp sales in Q2; company updated FY'27 estimate of MFP impact to ~125bps and noted a ~200bps net swing year-over-year at the total U.S. comp level driven by health & wellness dynamics.

Company Guidance

Walmart raised full‑year guidance, now targeting enterprise net sales growth of 4%–5% (up from 3.5%–4.5%) and adjusted operating income growth of 7%–8.5% (up from 6%–8%), with fiscal‑year EPS now $2.80–$2.87 (vs. $2.75–$2.85 prior); Q3 expectations are sales growth of 3%–3.75%, operating income growth of 2%–4% (constant currency) and EPS of $0.62–$0.64. Management said tariff refunds of roughly $2.9B (~0.5% of U.S. sales) delivered a ~750‑basis‑point benefit to Q2 operating income and will be largely reinvested this year into price and customer experience (Q2+Q3 reported OI would average ~10% growth per quarter), noted a >$2B headwind from higher fuel costs versus original assumptions, flagged Vibe acquisition/integration as ~20 bps of OI headwind, expects CapEx around 4% of sales with double‑digit free‑cash‑flow growth, anticipates Sam’s Club U.S. and International to be accretive in Q3/Q4, and highlighted a ~125‑basis‑point FY‑’27 Walmart U.S. comp headwind from maximum fair pricing and a >100‑bp Q3 timing headwind (with offsetting Q4 benefit) from Flipkart’s Big Billion Days.

Walmart Risk Analysis

Walmart disclosed 11 risk factors in its most recent earnings report. Walmart reported the most risks in the "Ability to Sell" category.

Ability to Sell - Risks related to the company’s ability to sell goods and services

Latest Risks Added

0 New Risks

Walmart Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

MX:WMT against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COST	83Outperform	$448.57B	48.71	28.02%	0.56%	10.14%	13.92%
DLTR	75Outperform	$25.12B	16.32	45.58%	―	-7.85%	―
TGT	68Neutral	$70.13B	15.93	26.66%	2.97%	1.95%	12.49%
DG	67Neutral	$29.19B	17.11	19.56%	1.78%	4.77%	42.79%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
KR	46Neutral	$39.43B	36.09	17.17%	2.16%	1.58%	-53.21%

* Consumer Defensive Sector Average

Performance Comparison

MX:WMT and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:WMT	Walmart Inc.	2320.00	423.95	22.36%
COST	Costco Wholesale Corp.	1012.28	77.06	8.24%
DG	Dollar General Corp	132.30	34.41	35.15%
DLTR	Dollar Tree	133.87	31.80	31.16%
KR	Kroger Company	66.76	4.41	7.08%
TGT	Target Corp	154.38	67.90	78.52%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Walmart AI Stock Analysis