- Walmart increased its fiscal year adjusted EPS forecast to $2.58-$2.63, up from the previous $2.52-$2.62, with current estimates at $2.61.
- Net sales are expected to rise between 4.8% and 5.1%, compared to the earlier prediction of 3.75% to 4.75%.
- The third-quarter US comparable sales, excluding gas, rose by 4.4%, surpassing the estimate of 4%.
- Walmart-only stores in the US saw comparable sales, excluding gas, increase by 4.5%, above the forecast of 4.03%.
- Sam’s Club US comparable sales, excluding gas, grew by 3.8%, falling short of the projected 4.77%.
- Adjusted EPS for the third quarter was 62 cents, exceeding the estimate of 60 cents.
- Total revenue reached $179.50 billion, showing a 5.8% year-over-year increase and topping the estimate of $177.57 billion.
- Sam’s Club e-commerce sales surged by 22%, outpacing the anticipated 15.7% growth.
- Adjusted operating income stood at $7.2 billion, beating the estimate of $7.03 billion.
- Walmart’s global e-commerce activities expanded by 27%, with each business segment achieving over 20% growth.
- The annual adjusted operating income, excluding foreign exchange, is projected to rise between 4.8% and 5.5%.
- The effective tax rate for the year is expected to be at the mid to low end of the previous range of 23.5%-24.5%.
- Annual capital expenditures are forecast to be approximately 3.5% of net sales, slightly up from the prior forecast of 3%-3.5%.
- Operating cash flow grew by $4.5 billion due to timing of payments, more cash from operating income, and lower cash tax payments.
- Walmart US e-commerce sales rose by 28%, driven by strong store-fulfilled delivery, advertising, and marketplace sales.
- Sales through expedited store-fulfilled delivery channels saw nearly 70% growth.
Walmart on Smartkarma
Analysts on Smartkarma, such as Baptista Research, have provided varying perspectives on Walmart‘s recent performance and future outlook. According to Baptista Research, Walmart‘s recent quarterly results revealed a mix of strengths and challenges, shaping a nuanced investment thesis. The retail giant saw a notable 5.6% sales increase on a constant currency basis, driven by robust e-commerce growth of 25% globally, surpassing expectations, particularly in the U.S. markets.
Furthermore, Baptista Research highlighted concerns over high inventory levels and tariffs that are impacting Walmart‘s attractiveness as an investment opportunity. Despite the positive sales growth, the analysts raised alarms on potential challenges posed by tariffs in the current economic environment, urging shoppers to brace for possible impacts. Walmart‘s solid first-quarter performance for fiscal 2026, with earnings exceeding expectations and revenue growth of 2.5% year over year, showcased resilience but also underlined the need for investors to consider the broader economic landscape.
A look at Walmart Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
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Based on the Smartkarma Smart Scores for Walmart, the company has promising long-term prospects. With strong scores in Growth and Momentum, Walmart is positioned well for future expansion and market performance. The high Growth score indicates potential for increased revenue and market share over time, while the robust Momentum score suggests positive investor sentiment and market traction.
Moreover, Walmart‘s respectable scores in Resilience and Value further bolster its outlook. A solid Resilience score signifies the company’s ability to weather economic uncertainties and challenges, enhancing its long-term sustainability. The Value score highlights Walmart‘s attractiveness from an investment standpoint, indicating potential for stable returns and solid fundamentals.
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### Walmart Inc. operates discount stores, supercenters, and neighborhood markets. The Company offers merchandise such as apparel, housewares, small appliances, electronics, musical instruments, books, home improvement, shoes, jewelry, toddler games, household essentials, pets, pharmaceutical products, party supplies, and automotive tools. Walmart serves customers worldwide. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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