TD Cowen maintains Walmart stock Buy rating, $115 target post-earnings

On Thursday, TD Cowen reaffirmed its positive stance on Walmart Inc. (NYSE:WMT), maintaining a Buy rating and a $115.00 price target following the retail giant’s first-quarter earnings report. The company, currently valued at $771 billion, maintains a "GOOD" overall financial health rating according to InvestingPro analysis. Walmart’s earnings per share (EPS) of 61 cents exceeded the average analyst expectation of 58 cents, driven by a robust 4.5% increase in U.S. comparable sales, which outpaced the forecasted 3.9%. The company also reported a healthy 1.6% rise in customer traffic and a 2.8% growth in average ticket size. This performance contributes to Walmart’s impressive revenue of $681 billion over the last twelve months, with a steady revenue growth of 5.07%.

The analyst from TD Cowen highlighted that Walmart continues to gain market share through its competitive pricing strategy, which also contributes positively to its margins. This growth has been supported by an increase in profits from the company’s marketplace, advertising, and e-commerce segments. Despite facing some headwinds from additional costs due to tariffs and liability claims included in selling, general, and administrative expenses (SG&A), Walmart has maintained its full-year guidance, projecting an EPS growth of 0-4%.

The earnings report indicates that Walmart is successfully navigating the challenges of a competitive retail environment and managing external pressures such as tariffs. The company’s focus on maintaining low prices has been a key factor in attracting and retaining customers, contributing to the positive performance in both traffic and ticket growth.

Walmart’s ability to leverage its marketplace and advertising platforms, along with its e-commerce operations, has been instrumental in driving profitability. These segments have provided a buffer against the extra costs incurred, allowing the retailer to sustain its growth trajectory.

In conclusion, Walmart’s first-quarter results have underlined its strategic initiatives and operational efficiency. The company remains committed to its full-year outlook, suggesting confidence in its ability to continue delivering shareholder value amidst a dynamic retail landscape. The reiteration of the Buy rating and price target by TD Cowen reflects the firm’s optimism about Walmart’s prospects and its continued performance in the market. According to InvestingPro, Walmart has maintained dividend payments for 53 consecutive years, demonstrating consistent shareholder returns. For deeper insights into Walmart’s valuation and 12 additional ProTips, including detailed financial analysis and future growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Walmart’s financial performance has been a focal point for investors, as the company reported earnings per share (EPS) of $0.61 for the first quarter of fiscal year 2026, surpassing the forecasted $0.58. Walmart’s revenue reached $165.61 billion, slightly exceeding expectations, and marked a 4% year-over-year increase. The company’s U.S. comparable sales grew by 4.5%, with Sam’s Club comparable sales showing a notable 6.7% increase. Analysts from Citi have maintained a Buy rating with a $120 price target, citing Walmart’s strong sales and EPS performance despite a lower gross margin due to product mix. Truist Securities also adjusted Walmart’s price target to $111, up from $107, while retaining a Buy rating, highlighting the company’s resilience and market share growth.

Walmart’s management confirmed their annual guidance but refrained from providing specific second-quarter earnings guidance, citing economic unpredictability. The company is optimistic about a 3.5% to 4.5% rise in second-quarter sales. Analysts have noted Walmart’s ability to navigate challenges such as tariffs and inventory management, with the company reaffirming its full-year sales growth guidance of approximately 4%. Walmart’s e-commerce segment achieved profitability for the first time globally, contributing to the company’s robust performance.

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