Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
On Thursday, Citi analysts maintained their Buy rating and $120.00 price target for Walmart stock (NYSE:WMT), following the company’s recent performance report. According to InvestingPro data, this target aligns with the broader analyst consensus, as the stock currently maintains a "Strong Buy" recommendation with an average rating of 1.51 (where 1 is Strong Buy and 5 is Strong Sell). The retail giant surpassed market expectations with its sales and earnings per share (EPS), despite a gross margin (GM) that fell short due to product mix. With a substantial market capitalization of $775 billion and impressive revenue of $681 billion in the last twelve months, Walmart’s U.S. comparable sales grew by 4.5%, outperforming the consensus estimate of 3.9%. Additionally, Sam’s Club comparable sales saw a significant increase of 6.7%, compared to the anticipated 4.5%. International sales nearly matched expectations, registering a slight decline of 0.1% against the predicted 0.3% drop. InvestingPro analysis reveals that Walmart has maintained dividend payments for 53 consecutive years, showcasing its financial stability. Get access to 10+ more exclusive ProTips and comprehensive financial metrics with InvestingPro.
Walmart’s management team confirmed their annual guidance, a move which was anticipated by the market. They abstained from providing second-quarter operating income or EPS guidance, citing the current unpredictable economic landscape. Nevertheless, they projected a healthy increase in second-quarter sales, estimating a rise of between 3.5% to 4.5%. This suggests that the quarter has begun on a strong note.
According to the Citi analyst, the market held high expectations ahead of the quarterly report. The combination of robust first-quarter results, which included continued strong top-line trends, and the affirmation of the yearly outlook are expected to contribute to a slight uptick in Walmart’s stock price. The company’s ability to beat consensus sales across all divisions indicates a solid operational performance despite the challenging market conditions. InvestingPro’s Financial Health Score of 2.68 (rated as "GOOD") supports this positive outlook, with particularly strong scores in profitability (3.6) and price momentum (3.59). Discover detailed valuation metrics and access the comprehensive Pro Research Report, available for Walmart and 1,400+ other top stocks.
In other recent news, Walmart Inc. reported its financial results for the first quarter of fiscal year 2026, surpassing market expectations with earnings per share of $0.61 compared to a forecast of $0.58. The company’s revenue reached $165.61 billion, slightly above the anticipated $165.60 billion, marking a 4% year-over-year growth. Walmart’s e-commerce sales surged by 22%, contributing to its profitability, and the company maintained its full-year sales growth guidance of approximately 4%. Despite these positive earnings results, Walmart’s stock experienced a premarket decline. The company also achieved e-commerce profitability globally for the first time, highlighting its effective cost management and operational efficiency. Furthermore, Walmart reaffirmed its commitment to growing operating income faster than sales, indicating confidence in its strategic initiatives. The company is also navigating potential impacts from tariffs with flexible inventory management, which remains a critical focus amid economic uncertainties.
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