Walmart (WMT) Stock Forecast & Price Target

Walmart demonstrated strong financial performance with consolidated net sales of $178.8 billion for the quarter, reflecting a year-over-year growth of 4.0%, and an increase of 5.2% in constant currency. The company achieved gross margin expansion in both its U.S. and international segments due to effective inventory management and an improved business mix, with Walmart U.S. alone seeing a 53 basis points increase in gross margin. Moreover, the significant rise in e-commerce sales by 20% and the 10% growth in advertising highlights Walmart's successful adaptation to changing market dynamics and underscores its robust operational efficiency.

Walmart International reported net sales of $32.2 billion, experiencing a decline of 0.7%, which was exacerbated by adverse currency fluctuations amounting to $2.1 billion and a decrease in sales from Flipkart’s The Big Billion Days. The company's overall operational performance indicated a guided deceleration in margin expansion due to consumer spending weakness and increasing competition, leading to operating margins falling short of expectations at 4.4%, a reduction of 8 basis points year-over-year. Additionally, while debt levels decreased by 3.4% year-over-year to $39.1 billion, the lower-than-expected fiscal 2026 guidance has raised concerns among investors.