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

Walmart (NASDAQ:WMT) announced its quarterly earnings data on Thursday. The retailer reported $0.81 earnings per share for the quarter, beating analysts’ consensus estimates of $0.74 by $0.07, Zacks reports. Walmart had a return on equity of 21.25% and a net margin of 3.13%. 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 Performance

NASDAQ WMT opened at $114.30 on Thursday. The stock has a market capitalization of $909.61 billion, a price-to-earnings ratio of 40.11, a PEG ratio of 4.31 and a beta of 0.61. Walmart has a twelve month low of $95.42 and a twelve month high of $135.15. The company has a current ratio of 0.77, a quick ratio of 0.23 and a debt-to-equity ratio of 0.42. The stock has a 50-day moving average of $114.03 and a 200 day moving average of $121.49.

Analyst Upgrades and Downgrades

A number of brokerages recently commented on WMT. Oppenheimer lowered Walmart from a “market perform” rating to a “cautious” rating in a research report on Wednesday. Wolfe Research reissued an “outperform” rating and set a $137.00 price target (up from $135.00) on shares of Walmart in a research report on Monday, May 11th. Erste Group Bank cut shares of Walmart from a “buy” rating to a “hold” rating in a research note on Friday, June 5th. DA Davidson restated a “buy” rating and set a $150.00 price objective on shares of Walmart in a research note on Monday. Finally, Morgan Stanley upped their price objective on shares of Walmart from $135.00 to $140.00 and gave the company an “overweight” rating in a report on Wednesday, April 22nd. One analyst has rated the stock with a Strong Buy rating, thirty have assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Walmart presently has an average rating of “Moderate Buy” and an average target price of $138.50.

Key Walmart News

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

Insider Activity at Walmart

In other news, EVP Latriece Watkins sold 11,000 shares of the stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $118.97, for a total transaction of $1,308,670.00. Following the transaction, the executive vice president owned 120,203 shares in the company, valued at $14,300,550.91. This trade represents a 8.38% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Daniel J. Bartlett sold 3,775 shares of the business’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $109.64, for a total transaction of $413,891.00. Following the completion of the sale, the executive vice president directly owned 630,009 shares of the company’s stock, valued at approximately $69,074,186.76. The trade was a 0.60% decrease in their position. 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 valued at $6,389,402 in the last ninety days. 0.09% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Walmart

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

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.