Walmart eCommerce Up 24%: Can Digital Momentum Continue?

Walmart Inc.’s WMT fourth-quarter fiscal 2026 results highlighted a strong 24% surge in global eCommerce sales, underscoring the retailer’s steady transition into a tech-powered omnichannel leader. The digital growth was broad-based across segments, with Walmart U.S. eCommerce increasing even more strongly with 27% rise, reflecting continued traction in the company’s online channels.

The primary engines behind this momentum include store-fulfilled pickup and delivery, along with the company’s expanding marketplace and advertising businesses. In the United States, Walmart’s focus on convenience is yielding meaningful results, with expedited store-fulfilled delivery channels growing more than 50%. In addition, the number of customers choosing ultrafast delivery, defined as under three hours, increased more than 60% during the year. This convenience-driven model has helped attract a broader customer base, including higher-income households that continue to contribute meaningfully to share gains.

Technology investments are also strengthening Walmart’s digital ecosystem. The company’s AI shopping assistant, “Sparky,” is already driving higher engagement, with users generating average order values roughly 35% higher than non-users. By combining forward-deployed inventory, automation and AI-powered shopping experiences, Walmart is strengthening the connection between digital demand and physical fulfillment.

As these capabilities expand across markets, Walmart’s efforts to offer faster and more convenient online shopping experiences could continue to support its digital momentum. The company’s ability to integrate the vast store network with digital capabilities is also helping strengthen its omnichannel fulfillment model.

WMT and Peers: Target & Costco Strengthen Digital Ecosystems

Target Corporation’s TGT digital ecosystem continues to gain traction as the retailer focuses on speed and convenience to drive online engagement. The company noted that same-day services generated more than $14 billion in sales in 2025, accounting for roughly two-thirds of digital revenues. Target is also expanding next-day fulfillment capabilities to improve delivery speed. As digital adoption grows, Target continues to focus on enhancing convenience and strengthening its omnichannel capabilities.

Costco Wholesale Corporation COST reported a 22.6% increase in Digitally-Enabled comparable sales in the second quarter of fiscal 2026. This momentum for Costco is fueled by enhanced personalization efforts and a 45% surge in mobile app traffic. As digital engagement continues to grow, Costco is using its vast warehouse network to support omnichannel fulfillment and make shopping more convenient for customers.

WMT’s Price Performance, Valuation and Estimates

Shares of Walmart have fallen around 7.6% in the past month compared with the industry’s decline of 6%.

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From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 42.18X, significantly up from the industry’s average of 38.92X.

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The Zacks Consensus Estimate for WMT’s fiscal 2027 and 2028 earnings implies year-over-year growth of 9.5% and 12.7%, respectively.

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WMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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