Walmart stock (NYSE:WMT) faced volatility after releasing its fiscal 2026 second-quarter earnings on Aug. 21. The retail giant delivered stronger-than-expected revenue but missed earnings estimates for the first time since May 2022. Investors initially reacted with caution, sending shares down about 4.5%, yet long-term fundamentals remain encouraging.
Walmart Stock Earnings Highlights
Walmart’s Q2 2026 revenue rose 4.8% year-over-year (YOY) to $177.4 billion, beating Wall Street’s $176.16 billion forecast. Comparable sales at Walmart U.S. jumped 4.6%, above projections of 4%, while Sam’s Club’s 5.9% gain topped the expected 5.2%. The company’s online sales remained a key growth driver, with global e-commerce revenue up 25% and U.S. e-commerce sales increasing 26%.
Store-fulfilled deliveries surged nearly 50% YOY, with about one-third of orders expedited, highlighting Walmart’s ability to meet fast delivery expectations. Advertising revenue also strengthened results, growing 46% globally and 31% in the U.S. thanks to Walmart Connect and contributions from its $2.3 billion Vizio acquisition.
Despite strong top-line growth, adjusted earnings per share (EPS) came in at $0.68, below analyst expectations of $0.74. One-time restructuring costs, litigation settlements, and higher insurance claims weighed on net income, though underlying operations remained robust.
Walmart Stock Valuation and Dividends
With a $772 billion market cap, Walmart stock trades at 38x forward earnings, reflecting investor confidence in future profitability. Its 1.15x sales multiple remains slightly below the retail sector average, suggesting relative value.
Walmart has also increased its dividend for more than 50 consecutive years, ranking among the Dividend Aristocrats. The annual dividend of $0.94 per share yields about 0.97%. The next quarterly payout of $0.235 per share is scheduled for Jan. 5, 2026, to shareholders of record as of Dec. 12, 2025.
Over the past 52 weeks, Walmart stock gained 28%, outperforming the S&P 500’s (INDEXSP:SPX) 16% rise. Year-to-date, Walmart stock has increased 7%, slightly lagging the S&P 500’s 10% gain.
Walmart Stock Guidance and Analyst Targets
Management raised its full-year net sales growth forecast to 3.75%-4.75%, up from 3%-4%, and projected adjusted EPS between $2.52-$2.62. Analysts expect Q3 2026 EPS to grow 3.4% YOY to $0.60, with full-year EPS projected at $2.60 and 2027 EPS anticipated to rise 12.3% to $2.92.
Bernstein SocGen Group raised its Walmart stock price target from $113 to $117 with an “Outperform” rating, while Telsey Advisory Group reiterated its $118 target, citing Walmart’s strong e-commerce momentum and expanding customer base. JPMorgan lowered its target slightly from $130 to $127 but maintained an “Overweight” rating, noting temporary cost headwinds.
Overall, 37 analysts cover Walmart stock, with 30 assigning a “Strong Buy,” six recommending a “Moderate Buy,” and one suggesting “Hold.” The consensus price target is $112.50, implying a 16% upside, while the Street-high target of $130 suggests potential gains of 34%.
Should Investors Buy Walmart Stock?
Walmart’s Q2 results highlight both resilience and near-term challenges. The earnings miss was tied largely to one-off expenses rather than fundamental weakness. With strong e-commerce growth, an expanding advertising segment, consistent dividends, and raised guidance, Walmart stock remains attractive for long-term investors seeking stability and steady growth.
Bottom Line: While Walmart stock may face short-term volatility, its strong omnichannel strategy and shareholder-friendly policies make it a compelling long-term investment. Investors looking for exposure to a leading retail and e-commerce hybrid should consider Walmart stock as a potential “Buy” rather than a “Sell” or “Hold.”
Looking ahead, investors should monitor macroeconomic conditions, interest rate trends, and consumer spending patterns. These factors can influence Walmart’s margins and growth outlook. Continued innovation in e-commerce and advertising will be key catalysts supporting Walmart stock’s potential gains over the next several years, especially amid an evolving retail landscape.
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