Walmart's Resilience Shines With Broad EBIT Forecast And Strong Growth Engines, Analyst Says

BofA Securities analyst Robert F. Ohmes reiterated a Buy rating on the shares of Walmart Inc WMT with a price forecast of $120.00.

At the Investment Community Meeting in Dallas, the company reiterated its full-year fiscal 2026 guidance, initially shared during its fourth-quarter results in February.

While the sales outlook for the first quarter remains intact, Walmart has adjusted its EBIT growth projection for the period to reflect a wider range.

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This revision comes amid a weaker product mix early in the quarter, particularly in general merchandise, although trends improved as the quarter progressed.

Additionally, the company is accounting for roughly $200 million in increased casualty-related costs and aims to preserve the ability to adjust pricing strategies in response to potential tariff impacts, which could support accelerated market share growth, said the analyst.

The analyst opined that despite ongoing ambiguity surrounding the scale and rollout of new tariffs, WMT appears better equipped than many peers to manage potential fallout.

The retailer highlighted that more than two-thirds of its U.S. merchandise is sourced domestically. For the rest, China and Mexico represent its primary import partners.

Walmart's strong supplier network, pricing and automation systems, along with efficient inventory management, offer meaningful strategic advantages.

Early-stage growth engines are also beginning to take effect including improved profitability in e-commerce, expansion in digital advertising and Marketplace, pharmacy delivery services, continued momentum in India through Flipkart, and gains at Sam's Club in both the U.S. and China.

Importantly, Walmart has not seen any notable anti-American sentiment across its international markets such as Walmex and Sam's Club China, further supporting its global positioning, noted the analyst.

Walmart's digital advertising revenue, which reached $4.4 billion in fiscal 2025, continues to grow despite economic headwinds. The company benefits from its large omni-channel footprint and increasing third-party marketplace participation.

Walmart's U.S. e-commerce segment turned profitable in the first quarter and is expected to remain profitable throughout the year.

With plans to reach 95% of U.S. households with same-day delivery and expand ultra-fast service, Walmart is also seeing strong gains from digital ads, fintech, automation, and membership programs, the analyst observed.

Price Action: WMT shares closed at $90.61 on Thursday.

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