Walmart (WMT) opened its Q1 2027 reporting season with investors still focused on its recent run of quarterly results, which saw Q4 2026 revenue at about US$190.7b, basic EPS of US$0.53 and net income of US$4.2b. Over the last year, quarterly revenue moved from roughly US$165.6b in Q1 2026 to US$190.7b in Q4 2026, while basic EPS ranged between US$0.53 and US$0.88 as the retailer cycled through different trading periods. With trailing 12 month earnings growth of 12.6% and profit margins nudging higher in the supplied data, this latest update keeps the spotlight firmly on how efficiently Walmart is turning large sales volumes into bottom line profits.

See our full analysis for Walmart.

With the headline numbers set, the next step is to see how this earnings profile lines up with the main narratives around Walmart's growth, profitability and risks, and where the story in the data pushes back on those views.

3.1% net margin and earnings growth in focus

• Over the last 12 months, Walmart earned US$21.9b of net income on US$713.2b of revenue, giving a 3.1% net margin compared with 2.9% a year earlier and 12.6% earnings growth over that period.
• Analysts' consensus view sees omni channel investments and higher margin streams as key drivers, and the margin shift in the data partly supports that,
  • Advertising, marketplace and membership are described as higher margin activities, and the move from a 2.9% to 3.1% net margin lines up with that focus even as revenue growth in the data is mid single digit.
  • At the same time, the consensus narrative flags rising costs and international challenges, and the still low 3.1% margin leaves limited room for error compared with higher margin business models.

Same store sales around 4% and trading patterns

• Same store sales growth in the supplied quarters sits between 3% and 4.9%, with Q1 2026 at 3%, Q2 2026 at 4.4%, Q3 2026 at 4.5% and earlier Q3 2025 at 4.9%, while revenue moved from US$165.6b in Q1 2026 to US$190.7b in Q4 2026.
• Consensus narrative links these sales trends to e commerce and rapid delivery, and the figures both support and test that bullish angle,
  • Growth in global e commerce and rapid delivery is said to underpin sustained customer retention, and mid single digit same store sales and rising quarterly revenue give some numerical backing to that story.
  • However, management commentary in the narrative notes that parts of international e commerce remain loss making and that delivery and logistics costs on grocery still pressure margins, which tempers how much of the sales growth may drop to the bottom line.

Rich valuation versus 44.2x P/E and DCF fair value

• The stock trades at US$121.34 with a P/E of 44.2x, compared with an industry average of 18x and peer average of 26.8x, and the DCF fair value in the data is US$69.66 while the single allowed analyst price target figure is US$137.69.
• Bears focus on elevated pricing and cost risks, and the valuation metrics in the data give that cautious view some clear reference points,
  • The P/E premium versus peers and the DCF fair value of US$69.66, which is well below the current share price, both align with the concern that investors are paying a high multiple for earnings that are forecast to grow about 8.5% per year.
  • At the same time, the consensus narrative notes that higher margin advertising and memberships are growing and that earnings grew 12.6% over the last year, so the key question for bears is how long that earnings profile can justify a multiple meaningfully above the sector.

On these numbers, if you want to see how other investors are weighing Walmart's growth, margin profile and valuation, it is worth reading both the bullish and cautious takes side by side 🐂 Walmart Bull Case and 🐻 Walmart Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Walmart on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With that mix of optimism and caution in mind, it helps to look at the raw figures yourself and test how the story stacks up. If you want to see what specific strengths analysts are highlighting, take a closer look at the company's 2 key rewards

Explore Alternatives

Walmart combines a relatively low 3.1% net margin with a high 44.2x P/E and a DCF fair value of US$69.66 that trails the current share price.

If that mix of thin profitability and rich pricing feels uncomfortable, it is worth balancing your watchlist with companies trading closer to their earnings and cash flows by checking out the 53 high quality undervalued stocks

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.