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Walmart (NYSE: WMT) currently has a market capitalization of approximately $780 billion. Despite managing to outpace the S&P 500 over the previous five years, questions arise about its ability to maintain this growth trajectory moving forward.
In the first quarter of fiscal 2026, which ended on April 30, Walmart reported revenue of almost $166 billion, a 2.5% increase from the previous year. However, net income dropped to $4.5 billion, reflecting a 12% decline year-over-year. The company’s guidance for net sales growth remains steady, projected between 3% and 4% for fiscal Q2, attributing this consistency to its efficient cost management.
Walmart’s eCommerce segment saw a growth of 22% globally during the same period, although it has faced challenges with international physical stores. Rising tariffs, particularly related to imports from China, pose additional risks to its pricing strategy. Moreover, Walmart’s P/E ratio of 42, significantly above its five-year average of 33, raises concerns about future stock performance.
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