Walmart Inc. (NYSE:WMT) Posts Strong Q4 Results, Analysts Raise Targets

Walmart Inc. (NYSE:WMT) has released its annual results for fiscal 2025, with analysts updating their estimates in response to the company's strong performance. The retail giant reported revenue of $180.3 billion for the fourth quarter, up nearly 4% year-over-year, and adjusted earnings per share (EPS) of $0.64, up 7% from the year-ago quarter. These results exceeded analysts' expectations and marked the first time that Walmart's quarterly revenue was lower than that of Amazon (AMZN), which reported $187.8 billion earlier this month.

Analysts' average price target for Walmart stock is $109, suggesting little upside from Wednesday's closing price near record highs. However, several analysts have recently lifted their price targets, citing expectations that Walmart could continue gaining market share and topping analysts' estimates. Morgan Stanley and Deutsche Bank analysts each raised their targets to $115, while JPMorgan and Bank of America lifted their targets to $112 and $120, respectively. Melius Research analysts expect Walmart to "meaningfully beat" fourth-quarter estimates and maintain its conservative approach to initial projections for fiscal 2026.



Walmart's strong performance in recent quarters has been driven by factors such as increased market share and superior supply chains. The company's shares have gained nearly 80% over the past 12 months, reaching $104 on Wednesday, not far from last Thursday's record close at $105.05. Despite the positive outlook, some analysts expect Walmart to stick to its past trend of being conservative in its initial projections for the next fiscal year. This cautious approach may be due to the uncertainty surrounding economic conditions and potential policy headwinds.

In an investor call, Walmart's CEO, Doug McMillon, stated that the company is well-positioned to continue gaining market share and maintaining its competitive edge. He highlighted Walmart's focus on operational excellence, continuous improvement, and customer-centric strategies as key drivers of the company's success. McMillon also noted that Walmart is committed to investing in its employees, technology, and infrastructure to ensure long-term growth and sustainability.

Walmart's conservative approach to forecasting could have positive implications for the company's long-term growth prospects. By setting lower expectations, Walmart may be able to exceed them more easily, leading to positive surprises and increased investor confidence. Additionally, this strategy could help Walmart maintain its competitive edge by focusing on operational excellence and continuous improvement, rather than relying on aggressive growth targets.

In conclusion, Walmart's latest earnings results demonstrate the company's ability to maintain its market position and manage its costs effectively. Analysts are optimistic about Walmart's growth prospects, but the company is expected to maintain a conservative approach to its forecasts. This cautious strategy could have positive implications for Walmart's long-term growth prospects, as it allows the company to exceed expectations and maintain its competitive edge.