Walmart (WMT) Stock Forecast & Price Target

Walmart's consolidated net sales reached $177.8 billion for the quarter, marking a year-over-year increase of 5.8%, while operating income is projected to grow between 8% and 11%, indicating strong financial performance. The company's adjusted operating margins improved by 27 basis points to 4.2%, driven by favorable changes in business mix and reduced losses in its e-commerce segment. Additionally, Walmart ended the quarter with $10.6 billion in cash and cash equivalents, reflecting a 5.3% increase, which underscores the company's solid liquidity position as it continues to expand its operations and e-commerce initiatives.

Walmart's financial performance in fiscal 2025 shows mixed results, with significant concerns affecting its outlook, particularly within its international segment, which experienced a 68 basis point decrease in gross margin to 20.9%. The company accrued an additional $450 million in expenses during Q2, resulting in a substantial 560 basis point headwind to adjusted operating income growth for the quarter, which could further dampen earnings per share estimates. Additionally, the average ticket size has declined by 0.1%, indicating weakening consumer spending patterns, and grocery inflation remains low compared to broader food CPI trends, suggesting challenges in maintaining price competitiveness.