Earnings Alerts

Walmart (WMT) Earnings: Q3 Outlook and Impressive E-Commerce Growth

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  • Third Quarter Outlook: Walmart expects adjusted EPS to be between 58 to 60 cents, with estimates previously at 57 cents.
  • Revenue Expectations: Net sales are anticipated to grow by 3.75% to 4.75% at constant currencies.
  • 2026 Full-Year Forecast: Adjusted EPS projected to range from $2.52 to $2.62, slightly revised from the previous forecast. Net sales expected to increase by 3.75% to 4.75%.
  • Second Quarter US Performance:
    • Total US comparable sales, excluding gas, rose by 4.8%, ahead of the 4.21% estimate.
    • Walmart-only US store sales, excluding gas, increased by 4.6%, compared to the 4.05% forecast.
    • Sam’s Club US comparable sales, excluding gas, went up by 5.9%, exceeding the 5.29% estimate.
  • Earnings: Adjusted EPS for the second quarter was 68 cents, missing the 74-cent estimate.
  • E-Commerce Surge: US e-commerce sales grew by 26%, surpassing the 17.7% forecast. Sam’s Club e-commerce sales also climbed 26%, beating the 13% estimate.
  • Financial Health: Operating cash flow stood at $18.4 billion. Adjusted operating income was $7.88 billion versus the $8.47 billion estimate.
  • Capital Expenditures: FY 2026 capital expenditures are expected to be around 3% to 3.5% of net sales.
  • Currency Impact: A negative impact of $1.5 billion on revenue was attributed to currency fluctuations.
  • Share Repurchase Authorization: Remaining authorization for share repurchases is at $5.9 billion.
  • Global Growth: 2Q e-commerce sales rose by 25% worldwide.

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Walmart on Smartkarma



Analyst coverage of Walmart on Smartkarma by Baptista Research has provided a mix of insights. In the report titled “Walmart Raises Alarm on Tariffs: What Shoppers Need to Brace For!”, analysts highlighted Walmart‘s solid first quarter for fiscal 2026, exceeding expectations with adjusted earnings of 61 cents per share and a 2.5% year-over-year revenue growth. This positive outlook was reinforced by a 4.5% rise in U.S. same-store sales, outpacing projections.

Furthermore, Baptista Research‘s report titled “Walmart Warns Of Stressed Shoppers as Consumer Confidence Hits ROCK BOTTOM – What Lies Ahead?” noted a market capitalization drop of nearly $22 billion for Walmart. This decline followed reports of a 12-year low in U.S. consumer confidence, signaling potential economic challenges. Despite these concerns, Walmart‘s strategic focus on e-commerce and digital engagement, highlighted in the report “Walmart Inc: How Has The Expansion of E-commerce and Digital Engagement Has Become A Key Pillar Of Growth For The Retail Giant!”, showcases the company’s robust performance and value proposition, combining low pricing with enhanced convenience for customers.



A look at Walmart Smart Scores

FactorScoreMagnitude
Value2
Dividend2
Growth4
Resilience2
Momentum4
OVERALL SMART SCORE2.8

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, Walmart seems to have a positive long-term outlook. With a Growth score of 4 and a Momentum score of 4, the company appears to be on a path for expansion and has strong market performance. This indicates that Walmart is likely to continue growing and attracting investors’ attention in the future.

Despite having middling scores for Value, Dividend, and Resilience at 2 each, the higher scores in Growth and Momentum suggest that Walmart is well-positioned for progress in the coming years. As a company that operates discount stores, supercenters, and neighborhood markets offering a wide range of merchandise to customers worldwide, Walmart‘s focus on growth and market momentum bodes well for its future prospects.

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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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