Walmart Stock: Bernstein Reiterates “Outperform” with $108 Target Amid Strong Q1 Results

Walmart Stock: Bernstein Reiterates “Outperform” with $108 Target Amid Strong Q1 Results

Walmart Inc. (NYSE:WMT) continues to earn analyst confidence, with Bernstein reiterating its Outperform rating and maintaining a price target of $108.00. This vote of confidence comes after Walmart’s strong first-quarter performance, which exceeded internal and market expectations on several key metrics.

Solid Performance Drives Analyst Optimism

According to data from InvestingPro, Walmart stock has surged over 52% in the past year, despite trading at a relatively high P/E ratio of 42.18. The retailer's performance in the first quarter was a key driver behind the continued bullish outlook.

Highlights from the Q1 earnings report include:

• Net sales growth (constant currency): +4.0%, topping the company’s forecast of 3–4%

• Adjusted EBIT growth (constant currency): +3.0%, exceeding the projected 0.5–2.0%

• U.S. comparable sales growth: +4.5%, beating the 3.9% consensus estimate

• Adjusted EPS: $0.61, outpacing expectations by $0.03

Walmart's earnings call reinforced the company’s resilience amid macroeconomic challenges like ongoing tariffs, with management reaffirming FY2026 guidance under the assumption that current tariff levels remain in place.

Confidence in Walmart’s Strategy and Fundamentals

Bernstein analysts highlighted Walmart’s strong execution and its ability to deliver results despite external headwinds. They view the company’s reaffirmed guidance as a positive signal of its operational strength and its adaptability to market volatility.

Walmart’s long-term potential also remains a key driver of analyst support. With a 30-year history of consecutive dividend increases and a solid financial health rating from InvestingPro, Walmart demonstrates a track record of consistent performance and shareholder value.

Broad Analyst Support Across Major Firms

The broader analyst community is also bullish on Walmart. Firms like TD Cowen, RBC Capital Markets, BMO Capital Markets, KeyBanc Capital Markets, and Goldman Sachs maintain positive ratings on the stock, reflecting broad confidence in the company’s strategy.

Noteworthy insights from these firms include:

• RBC Capital Markets: Slightly lowered Q2 sales forecast but raised EPS expectations

• BMO Capital Markets: Highlighted Walmart’s first-ever ecommerce profitability

• KeyBanc Capital Markets: Emphasized Walmart’s consistent performance amid macro challenges

• Goldman Sachs: Applauded improved inventory management and strategic planning

These affirmations underscore Walmart’s ability to navigate an increasingly complex retail landscape, particularly as it balances pricing strategies, supply chain management, and digital growth.

Looking Ahead: A Growth Story with Strong Fundamentals

Walmart’s results and analyst sentiment suggest that the company is operating under an improved earnings algorithm, offering more stability and upside potential. With its scale, operational efficiency, and continued focus on digital and omnichannel growth, Walmart is well-positioned to thrive in both favorable and challenging economic environments.

As the global retail sector evolves, Walmart’s strategy appears focused on sustainable growth, continued innovation, and delivering value to both consumers and investors.