Walmart (WMT) Stock Forecast & Price Target

Walmart reported consolidated net sales for the quarter of $177.8 billion, reflecting a year-over-year increase of 5.8%, with an adjusted operating margin up 27 basis points to 4.2%. For the 12 months ending October 2025, net sales revenue rose to $703.06 billion, marking a 4.34% increase from the previous year. Additionally, the company's cash and cash equivalents expanded to $10.6 billion, up 5.3% year-over-year, underscoring a solid financial position amidst growing operational profitability.

Walmart's financial health has shown concerning signs, particularly with a notable decline in Economic Profit, which fell 10.92% year-over-year, from $9.76 billion to $8.70 billion. Additionally, the Return on Capital (ROC) has decreased from 13.33% to 12.03% over the last twelve months, suggesting a diminishing efficiency in generating profit from its capital. Furthermore, despite a flat gross margin at 24.2%, the operating margin continues to face downward pressure, exacerbated by challenges such as the acquisition of VIZIO and a declining average ticket size in the U.S. market.