Walmart (NASDAQ:WMT) Releases Earnings Results, Beats Estimates By $0.07 EPS

Walmart (NASDAQ:WMT) issued its earnings results on Thursday. The retailer reported $0.81 EPS for the quarter, topping analysts’ consensus estimates of $0.74 by $0.07, Zacks reports. Walmart had a net margin of 3.13% and a return on equity of 21.25%. Walmart updated its Q3 2027 guidance to 0.620-0.640 EPS and its FY 2027 guidance to 2.800-2.870 EPS.

Walmart Stock Down 0.8%

NASDAQ:WMT opened at $114.30 on Thursday. The company’s 50-day simple moving average is $114.03 and its 200-day simple moving average is $121.49. The company has a debt-to-equity ratio of 0.42, a quick ratio of 0.23 and a current ratio of 0.77. Walmart has a fifty-two week low of $95.42 and a fifty-two week high of $135.15. The stock has a market capitalization of $909.61 billion, a P/E ratio of 40.11, a P/E/G ratio of 4.31 and a beta of 0.61.

Insider Activity

In other news, EVP Daniel J. Bartlett sold 3,775 shares of the firm’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $109.64, for a total value of $413,891.00. Following the completion of the sale, the executive vice president owned 630,009 shares of the company’s stock, valued at $69,074,186.76. This trade represents a 0.60% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP David W. Guggina sold 11,978 shares of the business’s stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $119.82, for a total value of $1,435,203.96. Following the transaction, the executive vice president owned 125,067 shares in the company, valued at approximately $14,985,527.94. This trade represents a 8.74% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 54,164 shares of company stock worth $6,389,402 over the last 90 days. 0.09% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Walmart

Several hedge funds have recently modified their holdings of WMT. T. Rowe Price Investment Management Inc. boosted its stake in Walmart by 55.8% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 25,241 shares of the retailer’s stock worth $2,813,000 after purchasing an additional 9,041 shares in the last quarter. Birchwood Financial Partners Inc. acquired a new position in Walmart during the 4th quarter valued at approximately $50,000. Alpine Woods Capital Investors LLC purchased a new position in shares of Walmart in the fourth quarter worth $269,000. Strive Financial Group LLC purchased a new position in shares of Walmart in the fourth quarter worth $2,522,000. Finally, Ameriflex Group Inc. lifted its stake in shares of Walmart by 38.3% during the fourth quarter. Ameriflex Group Inc. now owns 7,834 shares of the retailer’s stock worth $873,000 after buying an additional 2,168 shares during the period. Institutional investors and hedge funds own 26.76% of the company’s stock.

Analysts Set New Price Targets

Several research firms have commented on WMT. Royal Bank Of Canada restated an “outperform” rating and set a $137.00 price objective on shares of Walmart in a report on Wednesday, August 12th. TD Cowen reiterated a “buy” rating and issued a $150.00 target price (up from $145.00) on shares of Walmart in a report on Thursday, May 7th. Weiss Ratings downgraded Walmart from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday, July 31st. BNP Paribas Exane cut their price target on Walmart from $147.00 to $146.00 and set an “outperform” rating on the stock in a research note on Friday, May 22nd. Finally, Evercore restated an “outperform” rating on shares of Walmart in a report on Monday, May 18th. One research analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating, four have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $138.50.

Key Headlines Impacting Walmart

Here are the key news stories impacting Walmart this week:

• Positive Sentiment: Walmart’s long record of revenue beats and solid e-commerce momentum could support an earnings surprise. Analysts expect approximately $0.73 in adjusted EPS and nearly $185 billion in revenue, representing more than 5% year-over-year sales growth. Walmart Q2 Preview
• Positive Sentiment: Higher-margin businesses, particularly Walmart Connect advertising and e-commerce, are expected to help offset the cost of competitive pricing and delivery investments. DA Davidson also reiterated a Buy rating. Walmart Advertising Growth
• Neutral Sentiment: Options traders are anticipating a sizable post-earnings move, making the results and management’s updated outlook more important than the headline quarterly figures. Expected Walmart Earnings Move
• Negative Sentiment: Investor caution reflects Walmart’s previously weaker-than-expected full-year outlook, moderating same-store sales momentum and thousands of price cuts intended to protect customer traffic. Slower sales growth could pressure margins if advertising and other higher-profit businesses do not compensate. Walmart Sales Growth Outlook
• Negative Sentiment: Valuation is another headwind: Walmart trades at roughly 40 times earnings, leaving limited room for disappointment. Analysts and market data have flagged downside risk if guidance remains cautious or the earnings report fails to exceed elevated expectations. Walmart Valuation Concern

Walmart Company Profile

Walmart is a multinational retail corporation that operates a broad portfolio of store formats and digital services. Its core business includes large-format supercenters, discount department stores, neighborhood grocery stores and a membership warehouse chain, Sam’s Club. The company’s merchandising mix covers groceries, household goods, apparel, electronics and pharmacy services, supplemented by private-label products and category-specific offerings. Walmart pairs its physical store network with online platforms and mobile applications to provide omnichannel shopping, fulfillment and delivery options for consumers and businesses.

The company was founded by Sam Walton, who opened the first store in Rogers, Arkansas in 1962; it is headquartered in Bentonville, Arkansas.