Walmart Inc. (NYSE:WMT) stock fell Friday even after the retail giant topped quarterly profit expectations and lifted its outlook for the year ahead.
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On Thursday, Walmart reported third-quarter adjusted earnings of 62 cents per share, beating the Street's 60-cent estimate.
The company also raised its 2026 adjusted EPS forecast to $2.58–$2.63, up from a prior range of $2.52–$2.62.
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Analysts Stay Positive As Profit Mix Improves
Analysts broadly reiterated bullish views on Walmart, citing strong momentum in value, convenience, and higher-margin engines like advertising and marketplace services. They noted that Walmart continues to gain market share and is well-positioned heading into the holiday season and 2026.
Bank of America Securities analyst Robert F. Ohmes maintained a Buy rating with a $125 forecast, highlighting Walmart's strong value proposition and digital convenience. He added that expanding advertising and marketplace revenues should support long-term profitability. Ohmes also raised his fiscal 2026 adjusted EPS estimate by a cent to $2.61, in line with the company's new guidance.
Goldman Sachs analyst Kate McShane reiterated a Buy and lifted her forecast from $114 to $121, writing that Walmart is well-positioned to deliver solid earnings growth into 2026 on the back of share gains. She said the retailer's continued focus on value and convenience should further strengthen its profitability profile.
JPMorgan analyst Christopher Horvers, who reiterated an Overweight rating and raised his forecast from $128 to $129, said the results eased concerns about consumer health and Walmart's earnings momentum after last week's CEO surprise. He added that Walmart's aggressive pricing strategy going into expected grocery disinflation could intensify competitive pressure across the sector.
DA Davidson's Michael Baker reiterated a Buy rating and raised his forecast from $117 to $130, noting that while pricing has risen in general merchandise, Walmart continues to offer value through low-end grocery rollbacks. Baker increased his 2025 and 2026 EPS forecasts to $2.64 and $2.85, up from $2.62 and $2.82.
BTIG analyst Robert Drbul reaffirmed his Buy rating and lifted his forecast from $120 to $125. He said Walmart has the levers to hit its fiscal 2026 sales growth goal of 3% to 4%, and expects operating income to rise faster than sales over the coming years. Advertising, memberships, marketplace activity, and Walmart Fulfillment Services will remain central to expanding profitability, he added.
Guggenheim's John Heinbockel maintained a Buy rating and raised his forecast from $115 to $120, noting that Walmart's top-line-driven EBIT beat stood out amid volatile large-cap retail results. He highlighted that the stock recently outperformed the S&P 500 by 800 basis points, an unusually strong showing given its size.
KeyBanc Capital Markets analyst Bradley B. Thomas reiterated an Overweight rating and raised his forecast from $110 to $120, citing Walmart's various growth initiatives and supply chain automation as drivers of faster sales and margin expansion. Thomas increased his 2025 EPS estimate to $2.61 from $2.59 while keeping 2026 unchanged at $2.95.
RBC Capital Markets analyst Steven Shemesh kept an Outperform rating with a $116 forecast, saying Walmart's third-party marketplace improves working-capital efficiency while offering merchants focus and consumers broader choice, strengthening the retailer's overall brand positioning.
Telsey Advisory Group's Joseph Feldman reiterated his Outperform rating and lifted his forecast from $118 to $130. Feldman said he remains encouraged by Walmart's push beyond core retail and e-commerce into a wider ecosystem that continues to broaden its growth runway.
Price Action: WMT shares were trading lower by 1.41% to $105.60 at last check Friday.
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