Earnings Brief
Walmart (WMT) FY2026 Annual Earnings Brief
Summary
In its most recent quarter (Q3, ending October 31, 2025), Walmart reported revenue of $177.8B and net income of $6.1B. E-commerce and advertising are growing rapidly, market cap has broken $1 trillion, and a P/E near 50x reflects high market expectations for its digital transformation.
📊 Stock Price & Market Cap
Data as of: May 14, 2026
Stock Price (WMT) $132.44 52-week range: $91.89 — $134.69
Market Cap $1.06T World's largest brick-and-mortar retailer
P/E Ratio 48.2x Forward P/E: 45.0x
In Plain Language
- Walmart's current market cap of $1.06 trillion puts it among the world's most valuable companies and makes it the world's largest physical retailer
- At $132.44, the stock is near its 52-week high of $134.69 — money keeps flowing in
- A P/E near 48x is extremely high for a traditional retailer — typical grocery chains trade at 15-20x. The market isn't just pricing Walmart as a retailer, but as a tech + retail + advertising company in transformation
- A forward P/E of 45x suggests analysts expect earnings to keep growing
🏦 What Does Wall Street Think?
Data as of: May 2026 · Source: stockanalysis.com
Consensus Rating Strong Buy 29 analysts covering
12-Month Average Price Target $134.48 ↑ +1.5% vs. current price
In Plain Language
- Analysts are almost universally bullish: 28 of 29 recommend buying, 0 recommend selling
- But note: analysts expect Walmart to reach $134 over the next 12 months on average — almost exactly the current price of $132! The stock has already fully priced in analyst optimism
- The most optimistic analyst believes Walmart will reach $150 in a year (~13% upside); the most conservative thinks it could fall to $112 (below current price)
- Note: Analyst forecasts are for reference only — historically, analyst price targets are often inaccurate. Investing involves risk; make your own judgment
💰 How Much Did They Earn? (Latest Quarter Q3 FY2026)
The following is Walmart's most recent quarterly data (August 1, 2025 — October 31, 2025):
| Metric | Q3 FY2026 | Notes |
|---|---|---|
| Total Revenue | $177.8B | Single quarter, excluding membership fee revenue |
| Operating Income | $6.7B | Core operating profitability |
| Net Income | $6.1B | Bottom line profit |
| Earnings Per Share (EPS) | $0.77 | Basic EPS |
In Plain Language
- Walmart's quarterly revenue is approaching $180B — about $1.9B in goods and services sold every day
- Net margin is about 3.4% — retail is inherently thin-margin, keeping only $3.40 per $100 sold, but the scale is massive
- Operating income of $6.7B is higher than net income; the gap is mainly interest, taxes, and other items
🏢 Three Business Segments
Walmart's business is divided into three segments, each with a distinct focus:
Walmart U.S.
All U.S. domestic stores and e-commerce, excluding Sam's Club
Largest Segment ~$130B+ ↑ Core pillar
E-commerce Growth Rapid Growth ↑ Sustained double-digit
Ad Revenue Walmart Connect ↑ Fast growing
In Plain Language
- The most stable base: U.S. retail is Walmart's largest revenue source, with over 4,600 stores nationwide
- E-commerce continues double-digit growth; Walmart+ membership service competes with Amazon Prime and is building a loyal user base
- Advertising (Walmart Connect) is a new growth engine — using shopping data to charge brand advertisers high-margin fees
Walmart International
China, India (Flipkart), Mexico, Canada, Chile, and more
Market Coverage 19+ Countries ↑ Global footprint
Standout Market India Flipkart ↑ High growth
Revenue Share ~20% ↑ Stable contribution
In Plain Language
- India is the future: Flipkart is one of India's largest e-commerce platforms, benefiting from India's 1.4B-person growth dividend
- Mexico (Walmex) is another large, consistently profitable market
- Walmart has exited some markets (UK, Japan) to focus on high-potential regions
Sam's Club
Membership warehouse club, competing with Costco
Model Annual Membership ↑ High margin
Locations ~600 ↑ Steady expansion
Renewal Rate Very High ↑ Sticky customers
In Plain Language
- Membership fees are pure profit: Sam's Club membership revenue is almost entirely profit — the highest-quality earnings in the portfolio
- Customers willingly pay an annual fee, signaling strong perceived value — very similar to Costco's model
- Sam's Club is also aggressively growing e-commerce, with delivery and pickup constantly improving
🏦 How Strong is the Balance Sheet?
| Metric | Amount | Notes |
|---|---|---|
| Total Assets | $284.7B | All assets on the books (as of January 31, 2026) |
| Cash & Short-term Investments | $10.7B | Money in the bank |
| Long-term Debt | $38.2B | Long-term borrowings |
| Market Cap | $1.06T | Stock price × shares outstanding — market's valuation |
In Plain Language
- Note: Book value of $284.7B ≠ Walmart's market value. Walmart's market cap is about $1.06 trillion — about 3.7x book value. The gap reflects brand value, global supply chain, membership ecosystem, and data assets that don't appear on the balance sheet
- Cash of $10.7B against long-term debt of $38.2B (net debt ~$27.5B) — for a company with over $600B in annual revenue, this debt level is very healthy and manageable
- Walmart is America's largest private employer, with over 1.6 million employees — a true "super-elephant" enterprise
📈 Walmart's New Growth Engines
Accelerating Businesses
- E-commerce: Sustained double-digit growth, U.S. e-commerce market share second only to Amazon
- Advertising (Walmart Connect): Charging brand advertisers using shopping data — high-margin business
- Membership (Walmart+): Subscription revenue growing steadily, increasing customer stickiness
Risks to Watch
- Very high P/E valuation: ~50x P/E is expensive for traditional retail, requiring high growth to sustain
- Thin margins: Retail net margins ~3%, leaving little room for error
- Stock near all-time highs: Analyst target almost identical to current price, limited near-term upside
📅 Why Does the Market Give Walmart a ~50x P/E?
In Plain Language
- Not just a supermarket — a data company: Walmart collects hundreds of millions of shopping data points daily. This is invaluable and can power advertising and financial services
- Chasing Amazon in e-commerce: Walmart's U.S. e-commerce market share is ~15%, second only to Amazon's ~38%, and the gap is narrowing
- Defensive + growth: People shop at Walmart to save money when the economy is weak (defensive); when the economy is good, consumption upgrades also help (growth)
- Global footprint: Assets like India's Flipkart are hugely valuable and could potentially go public independently in the future
- But beware: a 50x P/E means the market has already "priced in" many years of future growth. If growth disappoints, the risk of a price correction is significant
🎯 Key Points for Investors
1
A retail empire in transformation
E-commerce, advertising, and membership are changing Walmart's profit structure; high P/E reflects market expectations
2
Stock near all-time highs
Current price $132 is near the 52-week high of $134; analyst target is only $134 — limited short-term upside
3
The trillion-dollar club
Market cap has surpassed $1 trillion, making Walmart one of the few companies globally to reach this milestone
4
Defensive + growth
As the world's largest retailer, Walmart offers both stable cash flows and a digital transformation growth story