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Walmart Holds the Edge in an Uncertain Retail Environment
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Key Takeaways
Walmart delivered solid U.S. comparable sales growth, led by gains in grocery and essentials.
Walmart's e-commerce business posted strong double-digit growth, boosting digital momentum.
Walmart maintained tight inventory control while expanding permanent price reductions.
Walmart Inc. (WMT - Free Report) is reinforcing its competitive edge by staying focused on value, convenience and disciplined execution as retail conditions remain uncertain. Customers continue to spend, with upper and middle-income households driving growth, while lower-income shoppers face added pressure. Against this backdrop, Walmart is sharpening its price gaps and leaning on operational strengths to sustain momentum.
Price leadership remains the key. Walmart U.S. currently has about 7,400 active rollbacks, with more than half concentrated in grocery. Since the beginning of the fiscal year, more than 2,000 temporary rollbacks have transitioned into permanent, everyday low-price reductions. Like-for-like inflation in Walmart U.S. was 1.3% in the third quarter of fiscal 2026, reflecting ongoing efforts to manage cost pressures while maintaining affordability across key categories.
Traffic trends indicate continued relevance. Comparable sales in Walmart U.S., excluding fuel, rose 4.5%, driven by a 1.8% increase in transactions and a 2.7% gain in the average ticket. The company witnessed share gains across grocery, health and wellness, and general merchandise, signaling broad-based customer engagement.
Digital capabilities are further strengthening Walmart’s position. Global e-commerce sales surged 27% in the third quarter, with Walmart U.S. up 28%, marking the seventh consecutive quarter of more than 20% e-commerce growth in the segment. Approximately 35% of store-fulfilled U.S. orders were delivered in under three hours, and sales through expedited channels rose nearly 70%.
Inventory discipline supports this execution. WMT’s overall inventory increased 3.2% to $65.4 billion, while Walmart U.S. inventory rose 2.6%, roughly half the rate of sales growth. Together, these initiatives underscore Walmart’s ability to balance value, growth and operational discipline, reinforcing its resilience in a volatile retail landscape.
What the Latest Metrics Say About Walmart
Walmart, which competes with Costco Wholesale Corporation (COST - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares rally 28.7% in the past year compared with the industry’s growth of 27.9%. Shares of Costco and Target have declined 5% and 9.5%, respectively, in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 45.33, higher than the industry’s 41.2. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 14.86) while trading at a discount to Costco (48.4).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Walmart’s current fiscal-year sales and earnings per share implies year-over-year growth of 4.5% and 5.2%, respectively. The consensus mark for the next fiscal-year sales and EPS suggests a year-over-year increase of 4.6% and 11.5%, respectively.
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Walmart Holds the Edge in an Uncertain Retail Environment
Key Takeaways
Walmart Inc. (WMT - Free Report) is reinforcing its competitive edge by staying focused on value, convenience and disciplined execution as retail conditions remain uncertain. Customers continue to spend, with upper and middle-income households driving growth, while lower-income shoppers face added pressure. Against this backdrop, Walmart is sharpening its price gaps and leaning on operational strengths to sustain momentum.
Price leadership remains the key. Walmart U.S. currently has about 7,400 active rollbacks, with more than half concentrated in grocery. Since the beginning of the fiscal year, more than 2,000 temporary rollbacks have transitioned into permanent, everyday low-price reductions. Like-for-like inflation in Walmart U.S. was 1.3% in the third quarter of fiscal 2026, reflecting ongoing efforts to manage cost pressures while maintaining affordability across key categories.
Traffic trends indicate continued relevance. Comparable sales in Walmart U.S., excluding fuel, rose 4.5%, driven by a 1.8% increase in transactions and a 2.7% gain in the average ticket. The company witnessed share gains across grocery, health and wellness, and general merchandise, signaling broad-based customer engagement.
Digital capabilities are further strengthening Walmart’s position. Global e-commerce sales surged 27% in the third quarter, with Walmart U.S. up 28%, marking the seventh consecutive quarter of more than 20% e-commerce growth in the segment. Approximately 35% of store-fulfilled U.S. orders were delivered in under three hours, and sales through expedited channels rose nearly 70%.
Inventory discipline supports this execution. WMT’s overall inventory increased 3.2% to $65.4 billion, while Walmart U.S. inventory rose 2.6%, roughly half the rate of sales growth. Together, these initiatives underscore Walmart’s ability to balance value, growth and operational discipline, reinforcing its resilience in a volatile retail landscape.
What the Latest Metrics Say About Walmart
Walmart, which competes with Costco Wholesale Corporation (COST - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares rally 28.7% in the past year compared with the industry’s growth of 27.9%. Shares of Costco and Target have declined 5% and 9.5%, respectively, in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 45.33, higher than the industry’s 41.2. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 14.86) while trading at a discount to Costco (48.4).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Walmart’s current fiscal-year sales and earnings per share implies year-over-year growth of 4.5% and 5.2%, respectively. The consensus mark for the next fiscal-year sales and EPS suggests a year-over-year increase of 4.6% and 11.5%, respectively.
Walmart currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.