Walmart Earnings: Digital Fulfillment Options and Attractive Prices Drive Further Market Share Wins

We plan to raise our $56 fair value estimate on wide-moat Walmart by a low- to- mid-single-digit percentage following its solid fiscal 2025 third-quarter earnings release that featured further market share wins at both its namesake banner and Sam’s Club. Growth in alternative profit streams such as membership fees and advertising also contributed favorably to the bottom line as the retail behemoth saw adjusted EPS expand 14% annually to $0.58 (outpacing our $0.54 forecast). While we acknowledge that Walmart’s attractive price points and burgeoning online presence should translate into continued growth on the top and bottom lines for years to come, we think shares look very overvalued, trading at more than 30 times our forecast for fiscal 2026 adjusted EPS.