Walmart's AI Push and Strong Sales Trends Signal Confidence In Long-Term Growth: Analyst

Walmart (NYSE:WMT) showcased stronger sales trends, growing customer demand, and early leadership in artificial intelligence during investor meetings in Bentonville.

With expanding omnichannel capabilities, rising private-label adoption, and Sam’s Club momentum, Walmart signaled confidence in long-term growth.

Bank of America Securities analyst Robert Ohmes maintained Walmart with a Buy and raised the price forecast from $120 to $125.

Also Read: Walmart Pushes AI Strategy to Boost Growth, Efficiency, and Workforce Skills

Ohmes highlighted Walmart's long-term strength after investor meetings at its Bentonville headquarters. He cited stronger-than-expected revenue and profit trends, driven by scale, omnichannel execution, and early leadership in AI.

Ohmes noted Walmart's AI agent, Sparky, is evolving from answering questions to taking action, positioning the company at the "top of funnel" in AI-driven commerce. With data from 180 million customers, broad online and offline reach, and automated distribution, Walmart is well-positioned to capture share in retail media and transactions.

Consumer trends show steady growth in new customers, pharmacy expansion, and adoption of private-label products, with grocery penetration in the mid-20% range. Omnichannel momentum remains strong, with 95% of U.S. households reachable within three hours and a quarter within 30 minutes. Store remodels and expanded space are expected to accelerate delivery and localized fulfillment.

Sam's Club continues to attract Millennials and Gen Z, with higher renewal rates and premium assortments. Integration with Walmart's Spark driver network should boost sales and ROI faster than the core business.

Internationally, Walmart sees upside in Mexico, Canada, India, and China, aiming to double e-commerce penetration from under 30%, with Sam's Club units generating $300–$400 million annually.

WMT Price Action: Walmart shares were up 2.21% at $105.72 at the time of publication on Wednesday.

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