Walmart May Return to Beat-And-Raise Cycle

Walmart Inc. (NASDAQ: WMT ) is scheduled to release its fiscal 2027 second-quarter earnings results on Aug. 20 before the market opens, with Bank of America Securities analyst Christopher Nardone expecting the retail giant could return to a beat-and-raise cycle despite signs of softer spending among lower-income consumers. Nardone reiterated a Buy rating and $144 price forecast on Walmart ahead of the report.

S. comparable-sales growth slows. Walmart Earnings Beat Still In Play Bank of America forecasts second-quarter adjusted earnings of 74 cents per share. S.

5% from 4%. S. comparable sales would reduce Walmart's full-year net sales growth by about 10 basis points. Still, strength elsewhere in the business could allow Walmart to beat expectations and raise its outlook.

7% growth. 6% growth. The firm said the slowdown reflects the end of tax-refund benefits, less help from general merchandise pricing and some moderation among lower-income consumers. Price Cuts Could Fuel Market-Share Gains The analyst expects Walmart's July 6 price investments to help the retailer gain market share in the second half of the year.

A larger Marketplace assortment and faster delivery should also support those gains. Bank of America said the investments were already included in Walmart's guidance and should not create additional margin risk. Tariff-related refunds could create a margin headwind next year as Walmart laps those benefits. However, high-growth, high-margin businesses such as advertising could help fund further price investments.

Digital Business Becomes A Bigger Profit Driver The analyst also highlighted Walmart's digital businesses as an increasingly important part of the investment case. Global advertising revenue grew 36% in the first quarter, while Marketplace sales jumped nearly 50%. Membership fee revenue also remained strong. S.

comparable-sales growth remains in the 3% to 4% range. 53 in fiscal 2029. 42 billion. Bank of America's $144 price forecast is based on 45 times its fiscal 2028 adjusted earnings estimate.

S. comparable sales, continued market-share gains and operating income growth at nearly twice the pace of sales growth. 11. Recent analyst actions include: RBC Capital Markets: Outperform, with a $137 price forecast on Aug.

12. Oppenheimer: Upgraded Walmart to Perform on Aug. 4. Bernstein: Outperform; lowered its price forecast to $142 from $145 on July 31.

BTIG: Buy, with a $145 price forecast on June 8. Tigress Financial: Buy; raised its price forecast to $155 from $150 on May 29. UBS: Buy; lowered its price forecast to $141 from $147 on May 22. BNP Paribas: Outperform; lowered its price forecast to $146 from $147 on May 22.

Walmart Q2 Earnings Preview Wall Street expects Walmart to report second-quarter adjusted earnings of 74 cents per share, up from 68 cents a year earlier. 40 billion. Investors will closely watch margins, consumer demand and comparable sales. Walmart's ability to protect profitability while maintaining traffic could play a key role in the market's reaction.

Valuation also raises the stakes. 9 times earnings, leaving less room for weaker-than-expected results or a cautious outlook. 9%. In the most recent quarter, reported May 21, Walmart posted earnings of 66 cents per share, matching estimates.

75 billion estimate. On Feb. 19, Walmart reported earnings of 74 cents per share, beating the 73-cent estimate. 18 billion.

However, Walmart missed earnings expectations on Aug. 21, 2025. 80 billion forecast. The recent pattern suggests Walmart's revenue performance has been more consistent than its earnings results.

That could put greater focus on margins and forward guidance when the retailer reports its latest quarter. 45 at the time of publication on Wednesday, according to Pro data. Photo via Shutterstock