New York, May 26, 2026, 11:01 EDT
Walmart Inc. (WMT) stayed at Outperform with a $140 target at Evercore ISI on Tuesday, as the analyst pointed to record first-quarter Walmart+ sign-ups and the retailer’s digital operation topping $100 billion. Walmart shares fell 1.1% to $118.91 by late morning.
Walmart is under scrutiny as some investors question if its low-price strategy is enough with U.S. consumers feeling the pinch. The Conference Board’s consumer confidence index dropped to 93.1 in May. Gasoline in the U.S. was averaging $4.49 a gallon. About two-thirds of consumers polled said rising prices are making them cut back on spending.
Walmart’s Q1 numbers gave bulls and bears ammo. Sales were up 7.3% to $177.8 billion. Global e-commerce jumped 26%. Operating income gained 5.0%. But the company put Q2 adjusted EPS at just 72 to 74 cents and kept its fiscal 2027 targets as they were. Walmart expects Q2 net sales to climb 4% to 5% in constant currency, cutting out FX.
Morgan Stanley’s Simeon Gutman and Pedro Gil left their Overweight rating and $140 price target unchanged after the report, TheStreet said. The analysts pointed to Walmart’s e-commerce “flywheel”—a term the bank uses for its mix of online sales, ads, marketplace, and membership income. Online sales climbed about 25%, Walmart Connect ads jumped 44%, membership income rose 28%, and marketplace gross merchandise value added around 50% for the quarter. TheStreet
BofA cut its Walmart target to $144 from $150 and kept a Buy. The bank sliced its valuation multiple after earnings, saying the consumer backdrop looks tougher now. But BofA still thinks Walmart can win more share as shoppers hunt for value, and says that “should drive a return to a beat/raise cycle assuming the freight environment doesn’t worsen.” Piper Sandler’s Peter Keith went the other way, bumping his target up to $137 from $130, holding his Overweight. Insider Monkey
Walmart CFO John David Rainey said the company isn’t “immune” or “bulletproof” to what’s happening in the economy, and warned that continued high costs could mean “somewhat higher retail price inflation” for the second quarter and later in the year. First-quarter operating income was cut by about $175 million due to fuel costs, and average fuel purchases at Walmart gas stations dropped below 10 gallons for the first time since 2022, according to Reuters. Reuters
Target is upping its annual sales growth forecast to around 4%, though CEO Michael Fiddelke said he’s “not wanting to swing too hard too quickly” given recent weakness in consumer sentiment. The company is dropping prices on 3,000 products and pushing same-day delivery, trying to match Walmart and Amazon as shoppers want more convenience and help cutting fuel costs. Reuters
Walmart is a narrow trade for analysts at the moment. They think gains in traffic, advertising, membership and delivery scale can make up for higher fuel, healthcare and fulfillment costs. But if costs remain elevated, the $140 target looks less like a sales bet and more about how much profit Walmart can hold onto without raising prices.
