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Walmart's Membership Gains Scale: Is It the Next Major Profit Engine?
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Key Takeaways
Walmart's global membership fee revenues rose 17% year over year in second-quarter fiscal 2027.
Walmart posted double-digit U.S. growth, with record second-quarter net additions and first-half gains.
Walmart says members spend about four times more than non-members, adding value beyond fee revenues.
Walmart Inc. (WMT - Free Report) continues to broaden its earnings mix beyond traditional retail, with membership becoming a more meaningful contributor to its overall business. Growth across Walmart+ and Sam’s Club is adding fee income while strengthening customer engagement and supporting the company’s expanding digital ecosystem.
Global membership fee revenues increased 17% year over year in the second quarter of fiscal 2027 and reached an all-time high. Walmart+ continued to post double-digit growth in the United States, supported by record second-quarter net additions. The program also delivered its strongest first-half membership growth since its launch. Walmart U.S. membership and other income rose 15.6%.
Membership momentum extended across other markets and formats. Sam’s Club U.S. membership fee revenues increased nearly 6%, driven by steady growth in member accounts and higher Plus penetration. International membership fee revenues climbed 28%, while Sam’s Club China reached record member counts. Walmart also launched Walmart+ in Canada during the quarter.
The broader economic value of membership goes beyond fee revenues. Walmart noted that members spend approximately four times more than non-members. Membership revenues also contributed to improving Walmart U.S. e-commerce economics, alongside advertising, delivery-network density, fee-based expedited delivery and automation.
Membership is taking on a larger role in Walmart’s evolving profit mix. Rising fee revenues, growing enrollment and higher spending by members strengthen its contribution to the broader 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 gain 4.8% over the past year compared with the industry’s 3.6% growth. Shares of Costco have climbed 0.6%, while Target has surged 77.2% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 34.79, higher than the industry’s 31.80. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 16.15) while trading at a discount to Costco (40.59).
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 5.3% and 8.7%, respectively.
View the Zacks #1 Rank List
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Walmart's Membership Gains Scale: Is It the Next Major Profit Engine?
Key Takeaways
Walmart Inc. (WMT - Free Report) continues to broaden its earnings mix beyond traditional retail, with membership becoming a more meaningful contributor to its overall business. Growth across Walmart+ and Sam’s Club is adding fee income while strengthening customer engagement and supporting the company’s expanding digital ecosystem.
Global membership fee revenues increased 17% year over year in the second quarter of fiscal 2027 and reached an all-time high. Walmart+ continued to post double-digit growth in the United States, supported by record second-quarter net additions. The program also delivered its strongest first-half membership growth since its launch. Walmart U.S. membership and other income rose 15.6%.
Membership momentum extended across other markets and formats. Sam’s Club U.S. membership fee revenues increased nearly 6%, driven by steady growth in member accounts and higher Plus penetration. International membership fee revenues climbed 28%, while Sam’s Club China reached record member counts. Walmart also launched Walmart+ in Canada during the quarter.
The broader economic value of membership goes beyond fee revenues. Walmart noted that members spend approximately four times more than non-members. Membership revenues also contributed to improving Walmart U.S. e-commerce economics, alongside advertising, delivery-network density, fee-based expedited delivery and automation.
Membership is taking on a larger role in Walmart’s evolving profit mix. Rising fee revenues, growing enrollment and higher spending by members strengthen its contribution to the broader 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 gain 4.8% over the past year compared with the industry’s 3.6% growth. Shares of Costco have climbed 0.6%, while Target has surged 77.2% in the aforementioned period.
Image Source: Zacks Investment Research
From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 34.79, higher than the industry’s 31.80. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 16.15) while trading at a discount to Costco (40.59).
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 5.3% and 8.7%, 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.