Walmart (WMT) Stock Forecast & Price Target

Walmart has demonstrated robust financial performance, with consolidated net sales reaching $177.8 billion for the most recent quarter, reflecting a year-over-year increase of 5.8%, and total sales for the 12 months ending October 2025 growing from $673.82 billion to $703.06 billion, marking a 4.34% increase year-over-year. The company's adjusted operating margins improved by 9 basis points to 4.0%, supported by favorable business mix changes and reduced losses in e-commerce, while consolidated operating income is projected to grow by 8-11% in constant currency. Additionally, Walmart's cash and cash equivalents stood at $10.6 billion, up 5.3%, underscoring its strong liquidity position amidst sustained revenue growth.

Walmart's financial performance exhibits several concerning trends that contribute to a negative outlook, particularly highlighted by a 10.92% decline in Economic Profit year-over-year and a drop in Return on Capital from 13.33% to 12.03%. Despite robust overall revenues exceeding $680 billion in fiscal 2025, the company's operational challenges are evident as the international gross margin decreased by 68 basis points to 20.9%, which reflects adverse impacts from channel mix shifts and economic pressures. Additionally, the consolidated operating margin continues to face constraints, in part due to the acquisition of VIZIO, indicating ongoing difficulties in maintaining profitability amidst fluctuating consumer behavior and competitive pressures.