Shares of Walmart, a household name in retail, have demonstrated strong performance in 2025, surpassing broader market indexes. As the world’s largest retailer, according to the National Retail Federation, Walmart’s transition to the Nasdaq-100 marks a significant milestone in its ongoing evolution. This shift occurs just as the company has seen substantial growth, with its stock appreciating by 28% over the past year.
Joining the Nasdaq-100 before the market opens on January 20, Walmart takes the place of biopharmaceutical firm AstraZeneca. This move follows Walmart’s recent decision to relocate its listing to the Nasdaq, a platform that boasts a tech-focused investor base. Despite not being a traditional tech company, Walmart’s Chief Financial Officer David Rainey emphasized that this transition aligns with the company’s strategy of integrating advanced technology into its operations. By harnessing automation and artificial intelligence, Walmart aims to enhance customer experience and empower its workforce.
The recent financial results further validate Walmart’s robust position in the market. In its fiscal 2026 third quarter, ending October 31, the retail giant reported net sales of $177 billion, reflecting a year-over-year increase of 5.8%. Adjusted earnings per share rose 7%, amounting to $0.62. Notably, the company’s e-commerce sales surged by 27%, indicating a substantial growth trajectory as it gains market share. Comparable sales across U.S. stores increased by 4.8%, driven by a combination of transaction volume and higher average ticket sizes.
Walmart’s optimistic outlook is underscored by a revised sales forecast, now predicting a net sales increase of around 5% for the upcoming period, an upgrade from the previous estimate of 3.5%. The company’s Walmart+ membership program is also thriving, with record growth in net additions during the third quarter, which sets the stage for continued revenue expansion.
Analysts on Wall Street have largely maintained a bullish stance on Walmart. From a group of 43 analysts, 93% recommend buying the stock or rate it as a strong buy, with no sell recommendations. Notably, TD Cowen’s Oliver Chen stands out as an optimistic voice, recently raising his price target for Walmart shares to $136, suggesting an upside potential of approximately 15% relative to current prices.
However, the company’s valuation presents a conversation point, as Walmart’s stock trades at 42 times earnings, exceeding its five-year average of 35. Despite this premium, its long-term performance remains compelling, with gains of 465% over the past decade. This growth trajectory outpaces both the Nasdaq Composite and the S&P 500, which rose by 407% and 260%, respectively, during the same timeframe.
As Walmart continues to innovate and adapt in the competitive retail landscape, it appears poised for ongoing success, making it an attractive option for investors looking to tap into a blend of retail stability and technological advancement. With predictions suggesting it could join the trillion-dollar valuation club by 2026, Walmart’s future looks promising.
