Truist Securities has increased its 12-month price objective for Walmart Inc. to $139 from $127 while retaining a Buy recommendation on the shares. The firm cited a strong fourth-quarter operating performance and several indicators of improving profitability across the business.
Truist highlighted U.S. comparable sales growth of 4.6% in the quarter, narrowly above the broker's internal estimate of 4.5%. The company also recorded a modest acceleration in stacked transactions, which helped Walmart finish calendar year 2025 on a positive trajectory.
Over the last twelve months, Walmart generated total revenue of $703 billion, a 4.3% increase year-over-year. According to Truist, each of Walmart’s operating segments posted solid growth accompanied by margin expansion. The firm pointed to rising e-commerce profitability and faster growth in higher-margin alternative revenue streams as drivers that outpaced the core retailing segment.
Management metrics cited by Truist paint a picture of high profitability: return on equity stands at approximately 25%, and advertising plus membership revenues together comprised roughly one-third of total EBIT dollars in the fourth quarter. InvestingPro data referenced in Truist’s note show that 10 analysts have revised their earnings estimates upward for the upcoming period, reinforcing the recent positive momentum around the stock.
Truist noted that the higher-margin alternative businesses provide the company with flexibility to reinvest in the core retail operations while continuing to expand overall margins. The firm also observed that Walmart appears to be gaining market share across its channels.
From a valuation standpoint, Walmart carries a market capitalization of $976.9 billion and trades at a price-to-earnings ratio of 42.9. InvestingPro analysis quoted by Truist suggests the stock is trading above its Fair Value. At the same time, Truist described Walmart’s calendar year 2026 guidance as likely conservative, implying potential upside if results exceed those targets.
Truist also pointed readers toward Walmart’s Pro Research Report for more detailed analysis; the report is available for Walmart and more than 1,400 other U.S. equities via the InvestingPro service referenced in the note.
Other sell-side activity has reflected a similar shift in sentiment. DA Davidson increased its price target to $150, attributing part of the upward revision to automation and artificial intelligence initiatives that are helping margins. TD Cowen lifted its target to $145, highlighting Walmart’s position in artificial intelligence and its potential to change retail through conversational commerce. Telsey raised its target to $140, pointing to the company’s value-oriented product assortments and technology investments as key contributors to market share gains.
KeyBanc maintained an Overweight rating and set a $145 target, citing the strong fourth-quarter showing and growth in alternative businesses. Bernstein moved its target to $134, referencing improvements in e-commerce profitability and notable expansion in global advertising revenue, especially via Walmart Connect. Together, these analyst actions underscore a market view that Walmart’s strategic emphasis on technology and e-commerce is beginning to drive measurable financial benefits.
Sector and market context - The developments are most directly relevant to the retail sector, digital advertising markets and technology providers that support retail automation and e-commerce platforms.
Balance of risks - While consensus estimates and analyst actions have turned more positive, valuation measures indicate the stock may be trading at a premium to Fair Value, introducing potential valuation risk for investors.