Walmart (WMT) Stock Forecast & Price Target

Walmart's net sales revenue for the 12 months ending July 2025 rose by 4.23%, reaching $693.15 billion, reflecting robust financial performance across its segments. The company's return on capital improved from 13.29% to 13.64%, indicating enhanced efficiency in generating returns on investments. Additionally, Walmart's e-commerce sales surged by 26%, bolstered by strong store-fulfilled delivery and advertising revenue, further solidifying a positive outlook for the firm.

Walmart's fiscal 2025 results showed a substantial top-line achievement of over $680 billion; however, it fell short of EBIT expectations by $800 million, primarily due to significant margin pressures stemming from various non-recurring expenses. The reliance on grocery sales, accounting for nearly 60% of its U.S. revenue, alongside increasing labor costs and competitive pressures from pure-play e-commerce retailers, contributes to a dim outlook. Additionally, the potential for macroeconomic headwinds, compounded by volatility in consumer spending and broader economic uncertainty, raises concerns regarding Walmart's ability to sustain operating profit growth moving forward.