Walmart Inc. (WMT)

Price—Loading quote

AI: Overvalued

Price checkThe share price asks investors to pay heavily for steady but modest cash growth.

At $115.27, Walmart trades at about 42 times FY2026 diluted earnings of $2.73 and 41 times management’s FY2027 adjusted earnings midpoint. FY2026 free cash flow—cash left after operations and capital spending—was $14.9 billion, only 1.6% of the $917 billion market value. An illustrative valuation allowing 10% annual cash growth for ten years, 5% growth thereafter and an 8% required return produces roughly $99 per share after debt. Even those generous assumptions support an Overvalued verdict.

Big pictureSales and profit have risen steadily, but heavy investment has limited cash growth.

From FY2021 through FY2026, revenue increased from $555.2 billion to $706.4 billion, while operating income rose from $22.5 billion to $29.8 billion. Operating cash flow grew more slowly, from $36.1 billion to $41.6 billion, as capital spending climbed from $10.3 billion to $26.6 billion. Consequently, free cash flow fell from $25.8 billion to $14.9 billion, although it improved from $12.7 billion in FY2025. Grocery and essential-goods demand is defensive, but first-quarter fuel costs showed that Walmart’s thin retail profits remain sensitive to operating shocks.

Business strengthWalmart’s scale and finances are sturdy, though shareholder spending leaves little cash cushion.

At April 2026, Walmart had $10.7 billion of cash and $51.5 billion of debt. The resulting $40.7 billion net debt—debt minus cash—was less than one year of recent operating earnings before interest, taxes and noncash charges. Current liabilities exceeded current assets by $26.2 billion, making reliable inventory turnover and supplier credit important. FY2026 buybacks of $8.1 billion plus $7.5 billion of dividends slightly exceeded $14.9 billion of free cash flow. Stock compensation rose 30% to $3.6 billion; unavailable share-count history prevents confirming whether buybacks eliminated dilution.

What could change the storyFaster advertising growth could justify today’s price, while weak cash conversion would expose it.

The strongest bull case is Walmart’s shift toward more profitable services: first-quarter online sales grew 26%, advertising 37% and membership-fee revenue 17.4%. If these businesses lift margins while store investment slows, annual free cash flow could sustainably exceed $20 billion. The bear case is that capital spending remains heavy while FY2027 adjusted earnings stay near the guided $2.75–$2.85. At today’s price, the illustrative valuation requires roughly 12% annual cash growth for a decade under generous long-term assumptions, far above Walmart’s recent cash-growth record. The August 20 results are the next major test.

$115.27 price considered

AI: News

Growth met cautious guidanceSales beat expectations, but cautious profit guidance showed that fuel costs were squeezing growth.

On May 21, 2026, Walmart reported first-quarter revenue of $177.8 billion, up 7.3%, while adjusted profit per share—excluding selected unusual items—matched expectations at $0.66. Higher fuel costs reduced operating-income growth by about 2.5 percentage points. Second-quarter profit guidance of $0.72–$0.74 was below the $0.75 analyst estimate, and full-year guidance of $2.75–$2.85 trailed the $2.92 consensus. Investing.com reported a 2.1% premarket decline, linking the reaction to the cautious outlook rather than weak sales.

Vibe advertising acquisitionWalmart agreed to buy Vibe to expand a faster-growing, higher-profit advertising business.

On June 23, 2026, Walmart agreed to acquire Vibe.co, a self-service streaming-television advertising platform serving more than 10,000 advertisers. Walmart did not disclose the price; Retail Dive cited reporting of approximately $1.4 billion, which remains unconfirmed. The deal is expected to close by the end of FY2027 and will not affect current-year guidance. Combining Vibe with Walmart’s shopper data and Vizio could broaden advertising profits, but the undisclosed economics and integration needs make the eventual return uncertain. No reliable one-day stock reaction was established.

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Financial statements

	2026	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2010	2009	2008	2007
Revenue	$706.41B	$674.54B	$642.64B	$605.88B	$567.76B	$555.23B	$519.93B	$510.33B	$495.76B	$481.32B	$482.13B	$485.65B	$476.29B	$468.65B	$421.85B	$408.08B	$404.25B	$377.02B
Operating income	$29.82B	$29.35B	$27.01B	$20.43B	$25.94B	$22.55B	$20.57B	$21.96B	$20.44B	$22.76B	$24.11B	$27.15B	$26.87B	$27.73B	$25.54B	$24.00B	$22.77B	$21.95B
EBITDAderived	$44.03B	$42.32B	$38.87B	$31.37B	$36.60B	$33.70B	$31.55B	$32.63B	$30.97B	$32.84B	$33.56B	$36.32B	$35.74B	$36.20B	$33.18B	$31.16B	$29.51B	$28.27B
Net income	$21.89B	$19.44B	$15.51B	$11.68B	$13.67B	$13.51B	$14.88B	$6.67B	$9.86B	$13.64B	$14.69B	$16.36B	$16.02B	$17.00B	$16.39B	$14.37B	$13.38B	$12.73B
Basic EPSper diluted share	$2.74	$2.42	$1.92	$1.43	$1.63	$4.77	$5.22	$2.28	$3.29	$4.40	$4.58	$5.07	$4.90	$5.04	$4.48	$3.72	$3.40	$3.13
Diluted EPSper diluted share	$2.73	$2.41	$1.91	$1.42	$1.62	$4.75	$5.19	$2.26	$3.28	$4.38	$4.57	$5.05	$4.88	$5.02	$4.47	$3.71	$3.39	$3.13

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$500.0K disclosed value

Sells (SEC code S)270$11.47B disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 18, 2026Form 4 · 10b5-1	Nicholas Christopher JamesExecutive Vice President	SellCommon	2.9K	$118.19	$342.8K	575.0K
Jun 16, 2026Form 4	Walton Family Holdings TrustTenPercentOwner	SellCommon	24.7K	$122.42	$3.03M	502.31M
Jun 16, 2026Form 4	Walton Family Holdings TrustTenPercentOwner	SellCommon	539.7K	$121.78	$65.73M	502.33M
Jun 16, 2026Form 4	Walton Family Holdings TrustTenPercentOwner	SellCommon	3.86M	$120.99	$467.05M	502.87M
Jun 15, 2026Form 4 · 10b5-1	Bartlett Daniel JExecutive Vice President	SellCommon	1.4K	$119.83	$166.0K	633.8K

Review ownership filings at SEC.gov ↗

Walmart Inc. (WMT)

Financial charts

Financial statements

Insider buys & sells