Walmart Stock (NASDAQ:WMT) Price Dips Despite Analyst Raises

Walmart's stock (NASDAQ: WMT) experienced a slight dip this morning, despite receiving price target upgrades from two prominent Wall Street firms. The minor decline highlights the complex interplay of factors influencing market sentiment towards the retail giant.

The Walmart stock price of $112.42 is 0.30% down on the session, a somewhat muted reaction considering the positive adjustments made by Mizuho and Bernstein.

Mizuho analyst David Bellinger increased Mizuho's price target on Walmart to $125 from $115, reiterating an “Outperform” rating. This adjustment is part of a broader 2026 outlook for the retailing sector, with Mizuho noting “signs of strained consumer sentiment, although the key underpinnings of spending are still very much intact.” While maintaining a positive outlook on Walmart, Mizuho removed the stock from its Top Picks list, favoring Chewy (CHWY) instead. This shift suggests a recalibration of preferences within the retail space, possibly reflecting a greater emphasis on specific growth narratives.

Bernstein also raised its price target on Walmart, moving it to $129 from $122 while maintaining an “Outperform” rating. Bernstein anticipates that middle to high-income consumers will be better positioned in 2026. The firm's analysis points to the disproportionate impact of elevated inflation and a softening labor market on lower-income consumers. Furthermore, they believe that incremental tax refunds from the OBBBA are expected to disproportionately benefit middle to high-income cohorts. This perspective underscores the potential for a bifurcated retail environment, where different consumer segments experience varying levels of spending power.

Despite the day's slight stock decline, Walmart's underlying business continues to show strength. The company's strategic investments in e-commerce and membership programs are yielding positive results. U.S. e-commerce sales have surged 20%, driven by store-fulfilled delivery and marketplace platforms. Furthermore, high-margin businesses are creating a virtuous cycle with core retail operations, solidifying Walmart's omnichannel dominance. Advertising revenue has grown by 46%, and membership fee income rose by 15.3%, boosted by Walmart+ and international memberships.

Bolstering the positive outlook, Walmart has raised its fiscal year 2026 guidance. The company now expects full-year net sales growth of 3.75% to 4.75%, up from the prior 3% to 4%, and adjusted EPS raised from $2.50-$2.60 to $2.52-$2.62. This upward revision reflects the company's confidence in its operational excellence and strategic initiatives.

Markets appear to be carefully weighing analyst optimism against broader economic concerns and sector-specific dynamics. While the price target increases reflect a positive outlook on Walmart's long-term prospects, the market's immediate response indicates a degree of caution ahead of a fresh week of data.