Walmart (WMT) is the biggest company in the world in terms of revenue. Valued at $681 billion by market cap, the big-box discount retailer has delivered inflation-beating returns to long-term shareholders. In the past 20 years, Walmart stock has returned 583% in dividend-adjusted gains.
With earnings due out from the Dow Jones Industrial Average ($DOWI) constituent on Nov. 19, let’s see if the retail giant can continue to move higher based on its upcoming quarterly results.
What Do Analysts Expect from Walmart in Fiscal Q3?
Walmart is scheduled to announce its earnings results for fiscal Q3 of 2025 (ended in October) ahead of the opening bell on Tuesday, Nov. 19. According to consensus estimates, in Q3, Walmart is forecast to report revenue of $167.3 billion, up 4.6% year over year, and earnings per share of $0.53, up 12.8% year over year.
During its last earnings call, Walmart raised its forecast for fiscal 2025 due to higher store and online traffic. Walmart had forecast sales to rise between 3.75% and 4.75% for fiscal 2025, with adjusted earnings between $2.35 and $2.43 per share. Comparatively, its earlier sales growth forecast stood between 3% and 4%, with EPS between $2.23 and $2.37 per share.
For fiscal Q3, management forecast earnings between $0.51 and $0.52 per share, which was below estimates.
Notably, Walmart said that its revised outlook was due to a strong performance in the first half of the year, and the company remains cautious due to a challenging and volatile macro environment.
A Strong Performance in Fiscal Q2
In fiscal Q2 of 2025, Walmart’s comparable sales rose 4.2% year over year, topping consensus estimates. This metric includes sales from stores and clubs open for at least one year. Its Sam’s Club business notched 5.2% growth in comparable sales, while e-commerce revenue grew by 21% year over year.
Walmart said that sales of general merchandise products were positive for the first time in almost three years, which might indicate an improvement in consumer spending. The number of customers that visited its stores and website in the U.S. increased transactions by 3.6% year over year, while the average ticket size was up 0.6%.
Over the years, Walmart has gained traction by delivering value to consumers, allowing the company to thrive across economic cycles. Since Walmart is the world’s largest retailer, its performance provides us with insights into consumer spending patterns, which Wall Street watches closely.
Amid headwinds such as inflation and elevated interest rates, Walmart has focused on cost optimization and revenue diversification to drive growth. For instance, the company continues to add third-party sellers to its online marketplace. It is also looking to grow ad sales and expand its subscription base, which will drive recurring revenue higher. To compete with the quick-service restaurant category, Walmart recently launched Bettergoods, a grocery brand where the majority of food items are priced below $5, and includes easy meal solutions such as frozen pizzas.
Is WMT Stock a Good Buy Right Now?
Analysts tracking WMT stock expect adjusted earnings to expand from $2.03 per share in fiscal 2024 to $2.72 per share in fiscal 2026. So, priced at 34x forward earnings, the retail stock might seem expensive, given the average S&P 500 Index ($SPX) multiple is much lower at 23.8x.
Out of the 36 analysts covering WMT stock, 30 recommend “strong buy,” four recommend “moderate buy,” and two recommend “hold.” The average target price for the stock is $86.36, indicating an upside potential of less than 2% from current levels.
