Walmart’s Revenue Growth and Stock Performance
Walmart (NASDAQ: WMT) reported a 5.8% year-over-year revenue growth in its third quarter of fiscal 2026, up from 4.8% in the prior quarter. A notable highlight was the 27% increase in global e-commerce sales and a 53% growth in its global advertising business during the same period. Additionally, membership income rose by 17%, driven by the success of Walmart+ subscriptions in the U.S. and a 34% increase in international membership income, particularly from Sam’s Club in China.
Over the last year, Walmart’s stock has surged over 30%, substantially outpacing the S&P 500. However, the price-to-earnings ratio stands at 42, raising concerns about overvaluation, especially compared to tech giants like Meta and Alphabet, which have lower forward price-to-earnings ratios of 21 and 30, respectively. This high valuation also impacts Walmart’s dividend yield, currently at 0.8%. Analysts caution that any sign of economic weakness could lead to significant stock depreciation.
