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.
Is Walmart's Health Business Signaling Pharmacy Strength?
Read MoreHide Full Article
Key Takeaways
Walmart's U.S. health and wellness sales delivered high single-digit comp growth in Q4.
WMT pharmacy growth was powered by rising script volumes, share gains and a richer branded-drug mix.
Maximum Fair Pricing rules dragged results, but script growth held up amid reimbursement pressures.
Walmart Inc. (WMT - Free Report) continues to see steady traction in its health and wellness business, with pharmacy emerging as a meaningful underlying driver of growth. The category’s performance reflects a combination of rising prescription volumes, share gains and a richer mix of branded drugs, indicating sustained customer engagement in pharmacy services.
Health and wellness sales in the United States saw high single-digit comparable growth in the fourth quarter of fiscal 2026, largely supported by stronger pharmacy script counts. This suggests that demand fundamentals remain intact, with customers increasingly relying on Walmart for prescription fulfillment. The gains also point to improving competitive positioning in pharmacy, particularly as higher-value branded drugs contribute to the sales mix.
However, changes related to drug pricing regulations, specifically the implementation of Maximum Fair Pricing, created a noticeable drag on the category. Despite this headwind, the business continued to deliver solid growth, highlighting the resilience of volume-driven expansion.
The broader takeaway is that pharmacy strength is currently being driven more by utilization and market share gains than by pricing. Even as reimbursement dynamics weigh on reported growth, the steady increase in script volumes signals that Walmart’s pharmacy offering is gaining relevance with customers.
Overall, the trajectory of Walmart’s health business suggests that pharmacy is not just contributing to growth but is becoming a structurally important component. The ability to sustain script growth amid pricing pressures reinforces its role as a consistent and dependable growth lever within the company’s evolving health ecosystem.
What Do 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 32.5% over the past year compared with the industry’s 30.3% growth. Shares of Costco have dipped 0.3%, while Target has gained 37.1% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 44.15, higher than the industry’s 40.49. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 15.84) while trading at a discount to Costco (46.65).
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 about 5% and 9.5%, respectively.
View the Zacks #1 Rank List
Image: Bigstock
Is Walmart's Health Business Signaling Pharmacy Strength?
Key Takeaways
Walmart Inc. (WMT - Free Report) continues to see steady traction in its health and wellness business, with pharmacy emerging as a meaningful underlying driver of growth. The category’s performance reflects a combination of rising prescription volumes, share gains and a richer mix of branded drugs, indicating sustained customer engagement in pharmacy services.
Health and wellness sales in the United States saw high single-digit comparable growth in the fourth quarter of fiscal 2026, largely supported by stronger pharmacy script counts. This suggests that demand fundamentals remain intact, with customers increasingly relying on Walmart for prescription fulfillment. The gains also point to improving competitive positioning in pharmacy, particularly as higher-value branded drugs contribute to the sales mix.
However, changes related to drug pricing regulations, specifically the implementation of Maximum Fair Pricing, created a noticeable drag on the category. Despite this headwind, the business continued to deliver solid growth, highlighting the resilience of volume-driven expansion.
The broader takeaway is that pharmacy strength is currently being driven more by utilization and market share gains than by pricing. Even as reimbursement dynamics weigh on reported growth, the steady increase in script volumes signals that Walmart’s pharmacy offering is gaining relevance with customers.
Overall, the trajectory of Walmart’s health business suggests that pharmacy is not just contributing to growth but is becoming a structurally important component. The ability to sustain script growth amid pricing pressures reinforces its role as a consistent and dependable growth lever within the company’s evolving health ecosystem.
What Do 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 32.5% over the past year compared with the industry’s 30.3% growth. Shares of Costco have dipped 0.3%, while Target has gained 37.1% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 44.15, higher than the industry’s 40.49. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 15.84) while trading at a discount to Costco (46.65).
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 about 5% and 9.5%, respectively.
Walmart currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.