Walmart (WMT) Stock Forecast & Price Target

Walmart has demonstrated notable financial strength, with net sales revenue increasing by 4.23% year-over-year, rising from $665.04 billion to $693.15 billion for the 12 months ending July 2025. Additionally, the company's eCommerce sales soared by 25% year-over-year, bolstered by robust performance in store-fulfilled delivery, advertising, and marketplace services, while Walmart International net sales also grew by 5.5% year-over-year to reach $31.2 billion. Furthermore, Walmart's Return on Capital (ROC) improved from 13.29% to 13.64%, and economic profit increased 2.47% year-over-year, highlighting sustained operational efficiency and profitability.

Walmart's fiscal performance has revealed concerning trends, with EBIT falling $800 million short of expectations even when excluding a significant one-time legal expense, indicating underlying operational challenges. The company's gross margins have also disappointed, as a combination of fewer markups and ongoing inflationary pressures have led to margin compression, which may hinder Walmart's ability to maintain its low-price strategy effectively. Furthermore, the absence of a typical mid-year guidance raise and the potential for demand destruction due to inflation create a negative outlook for the retailer, suggesting that its thin operating margins may continue to strain financial results in the competitive retail landscape.