Raymond James on Walmart (WMT): 'continues to gain share (across income cohorts)'
Raymond James analyst Bobby Griffin reiterated an Outperform rating and $105.00 price target on Walmart (NYSE: WMT).
The analyst comments "This morning, before the market open, Outperform-rated WMT reported F2Q26 results that were mixed relative to expectations — EPS of $0.68 came in below consensus ($0.73) due to higher-than-expected claims costs (~$450M EBIT drag in 2Q), but comps beat, and the quarter showed continued strength across high-margin growth vectors (advertising +46% including VIZIO, membership income +15%) and another impressive quarter in eCommerce (+25% globally). Walmart U.S. comp sales growth ex-fuel of +4.6% came in above consensus (+3.4%), with balanced contributions from transactions (+1.5%) and ticket (+3.1%). While EPS missed slightly, WMT raised full-year guidance for both top-line and EPS, including some FX relief. Shares are trading modestly lower pre-market after the print (stock was +14% YTD heading into the event, on top of 72% in 2024). While the YTD results have some noise in them with the claims headwinds, we believe the underlying results (removing the ~$730M in YTD higher claims headwind), reinforces the fundamental case in owning Walmart (EBIT growth > CC sales growth). Walmart continues to gain share (across income cohorts), drive profitable omni-channel growth across the entire enterprise, and execute on a favorable mix shift, particularly in ads, marketplace, and membership — all of which support a long-term margin expansion opportunity."
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Shares of Walmart closed at $102.57 yesterday.