Can WMT sustain its EPS growth into 2026?

**Walmart's ability to sustain its EPS growth into 2026 is uncertain based on current trends and challenges.** Here's a detailed analysis: 1. **Recent Performance and Challenges**: - Walmart's most recent reported EPS was $0.65 for the fiscal quarter ending December 31, 2025, which represents a year-over-year decrease of 4.41%. - The company has faced challenges, including a disappointing outlook amid economic concerns, which has impacted investor sentiment. 2. **Financial Metrics and Growth Rates**: - Despite the EPS decline, Walmart has shown revenue growth, with a 4.13% year-over-year increase in total revenue, reaching $180.55 billion. - The company's e-commerce segment has seen significant momentum, with a 16% increase in revenue. 3. **Cost Factors and Profitability**: - Walmart has experienced higher costs of sales and operating, selling, general, and administrative expenses. - The company's diluted EPS is projected to be $0.59 for the upcoming quarter, indicating a potential decrease of 1.67% from the same quarter last year. 4. **Strategic Investments and Future Outlook**: - Walmart has been investing strategically in e-commerce and technology, which could position it for future growth. - The company's global presence and omni-channel strategy provide a competitive edge. 5. **Market Conditions and Analyst Sentiment**: - The retail sector faces intense competition and the need to adapt to evolving consumer preferences. - Analysts have adjusted their estimates downward, reflecting a more cautious outlook. 6. **Conclusion and Uncertainty**: - While Walmart has shown resilience in revenue growth and strategic positioning, the potential EPS decline and higher costs suggest challenges ahead. - The sustainability of EPS growth into 2026 will depend on the company's ability to manage costs, maintain market share, and continue to grow its e-commerce segment. In conclusion, while Walmart has a solid foundation in terms of revenue growth and strategic positioning, the potential EPS decline and external economic pressures make it uncertain whether the company can sustain its EPS growth into 2026 without significant improvements in profitability and market conditions.