We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Walmart Achieves eCommerce Profitability: Is it Just the Start?
Read MoreHide Full Article
Key Takeaways
Walmart reports its first-ever profitability in global eCommerce in first-quarter fiscal 2026.
Lower delivery costs and rising demand for faster shipping boosted WMT's digital margins.
Global eCommerce sales rose 22%, led by store-fulfilled orders, marketplace and advertising.
Walmart Inc.’s (WMT - Free Report) announcement of achieving profitability in its global eCommerce operations marks a pivotal turning point, not just for the retailer, but for the broader digital retail landscape. For the first time, the company reported positive contributions from its U.S. and global enterprise in the first quarter of fiscal 2026, an important milestone reflecting years of investment and strategic evolution.
A denser delivery network and a more efficient supply chain played central roles in this achievement. More customers are opting and paying for faster delivery, including one and three-hour windows, which has further supported margin improvement.
Walmart is also capitalizing on higher-margin digital services. In the fiscal first quarter, global advertising revenues surged 50%, while membership income rose 14.8%, fueled by the growing adoption of Walmart+ and Sam’s Club Plus. These business lines are becoming increasingly central to Walmart’s digital profit engine.
Notably, global e-commerce sales rose 22%, led by store-fulfilled pickup and delivery, marketplace momentum and digital advertising. Walmart U.S. eCommerce grew 21%, Sam’s Club U.S. saw a 27% increase and International eCommerce rose 20%, with strong digital mix expansion across markets.
WMT Rivals Expand eCommerce Amid Strong Demand
Target Corporation (TGT - Free Report) continues to build its eCommerce presence through services like same-day delivery, which jumped 36% in the first quarter of 2025. Its digital sales grew in the mid-single digits, supported by strength in Drive Up and Order Pickup. Target’s retail ad business, Roundel, also delivered double-digit growth. Fulfillment and operational costs remain a factor as the company expands its digital capabilities.
Costco Wholesale Corporation (COST - Free Report) reported a 14.8% increase in eCommerce comparable sales in the third quarter of fiscal 2025. This growth was largely driven by Costco Logistics, its platform that specializes in large, bulky items such as appliances and furniture. Notably, Costco Logistics deliveries surged 31%, driven by increasing volumes of large and bulky items. As digital sales expand, overall performance will depend on Costco’s ability to scale these operations efficiently.
WMT’s Price Performance, Valuation and Estimates
Shares of Walmart have gained around 0.6% in the past three months compared with the industry’s growth of 0.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 35.56X, significantly up from the industry’s average of 32.67X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for WMT’s fiscal 2026 and 2027 earnings implies year-over-year growth of 3.6% and 11.7%, respectively.
Image: Bigstock
Walmart Achieves eCommerce Profitability: Is it Just the Start?
Key Takeaways
Walmart Inc.’s (WMT - Free Report) announcement of achieving profitability in its global eCommerce operations marks a pivotal turning point, not just for the retailer, but for the broader digital retail landscape. For the first time, the company reported positive contributions from its U.S. and global enterprise in the first quarter of fiscal 2026, an important milestone reflecting years of investment and strategic evolution.
A denser delivery network and a more efficient supply chain played central roles in this achievement. More customers are opting and paying for faster delivery, including one and three-hour windows, which has further supported margin improvement.
Walmart is also capitalizing on higher-margin digital services. In the fiscal first quarter, global advertising revenues surged 50%, while membership income rose 14.8%, fueled by the growing adoption of Walmart+ and Sam’s Club Plus. These business lines are becoming increasingly central to Walmart’s digital profit engine.
Notably, global e-commerce sales rose 22%, led by store-fulfilled pickup and delivery, marketplace momentum and digital advertising. Walmart U.S. eCommerce grew 21%, Sam’s Club U.S. saw a 27% increase and International eCommerce rose 20%, with strong digital mix expansion across markets.
WMT Rivals Expand eCommerce Amid Strong Demand
Target Corporation (TGT - Free Report) continues to build its eCommerce presence through services like same-day delivery, which jumped 36% in the first quarter of 2025. Its digital sales grew in the mid-single digits, supported by strength in Drive Up and Order Pickup. Target’s retail ad business, Roundel, also delivered double-digit growth. Fulfillment and operational costs remain a factor as the company expands its digital capabilities.
Costco Wholesale Corporation (COST - Free Report) reported a 14.8% increase in eCommerce comparable sales in the third quarter of fiscal 2025. This growth was largely driven by Costco Logistics, its platform that specializes in large, bulky items such as appliances and furniture. Notably, Costco Logistics deliveries surged 31%, driven by increasing volumes of large and bulky items. As digital sales expand, overall performance will depend on Costco’s ability to scale these operations efficiently.
WMT’s Price Performance, Valuation and Estimates
Shares of Walmart have gained around 0.6% in the past three months compared with the industry’s growth of 0.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 35.56X, significantly up from the industry’s average of 32.67X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for WMT’s fiscal 2026 and 2027 earnings implies year-over-year growth of 3.6% and 11.7%, respectively.
Image Source: Zacks Investment Research
WMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.