Walmart (WMT) Stock Forecast & Price Target

Walmart reported consolidated net sales of $177.8 billion for the quarter, reflecting a year-over-year increase of 5.8%, with an overall fiscal 2025 net sales revenue rise of 4.34%, from $673.82 billion to $703.06 billion. The company demonstrated operational strength with adjusted operating margins increasing by 27 basis points to 4.2%, partly attributed to favorable changes in business mix and reduced losses in e-commerce. Additionally, Walmart's cash position strengthened, ending the quarter with $10.6 billion in cash and cash equivalents, up 5.3% year-over-year, bolstering its financial stability and future growth potential.

Walmart reported a decline in Economic Profit of 10.92% year-over-year, falling from $9.76 billion to $8.70 billion, indicating challenges in profitability. The company also experienced a drop in Return on Capital (ROC) from 13.33% to 12.03%, suggesting decreased efficiency in generating returns on investments. Furthermore, the consolidated operating margin continues to face pressure due to the acquisition of VIZIO and a slight decline in average ticket sales, which could negatively impact future revenue growth.