Walmart Achieves eCommerce Profitability: Is it Just the Start?
A denser delivery network and a more efficient supply chain played central roles in this achievement. More customers are opting and paying for faster delivery, including one and three-hour windows, which has further supported margin improvement.
Walmart is also capitalizing on higher-margin digital services. In the fiscal first quarter, global advertising revenues surged 50%, while membership income rose 14.8%, fueled by the growing adoption of Walmart+ and Sam's Club Plus. These business lines are becoming increasingly central to Walmart's digital profit engine.
Notably, global e-commerce sales rose 22%, led by store-fulfilled pickup and delivery, marketplace momentum and digital advertising. Walmart U.S. eCommerce grew 21%, Sam's Club U.S. saw a 27% increase and International eCommerce rose 20%, with strong digital mix expansion across markets.
WMT Rivals Expand eCommerce Amid Strong Demand
Target Corporation TGT continues to build its eCommerce presence through services like same-day delivery, which jumped 36% in the first quarter of 2025. Its digital sales grew in the mid-single digits, supported by strength in Drive Up and Order Pickup. Target's retail ad business, Roundel, also delivered double-digit growth. Fulfillment and operational costs remain a factor as the company expands its digital capabilities.
Costco Wholesale Corporation COST reported a 14.8% increase in eCommerce comparable sales in the third quarter of fiscal 2025. This growth was largely driven by Costco Logistics, its platform that specializes in large, bulky items such as appliances and furniture. Notably, Costco Logistics deliveries surged 31%, driven by increasing volumes of large and bulky items. As digital sales expand, overall performance will depend on Costco's ability to scale these operations efficiently.
WMT's Price Performance, Valuation and Estimates
Shares of Walmart have gained around 0.6% in the past three months compared with the industry 's growth of 0.4%.
From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 35.56X, significantly up from the industry's average of 32.67X.
The Zacks Consensus Estimate for WMT's fiscal 2026 and 2027 earnings implies year-over-year growth of 3.6% and 11.7%, respectively.
WMT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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