Looking ahead, Walmart issued guidance for the third quarter, with net sales expected to increase 3.75%-4.75% and operating income to increase 3%-6%. For fiscal 2026, the company raised its outlook for net sales growth to the range of 3.75%-4.75% (was 3%-4%) and adjusted earnings per share in the range of $2.52-$2.62 (was $2.50-$2.60) versus the $2.62 consensus mark. Walmart’s guidance for adjusted operating income growth of 3.5%-5.5% remained unchanged. We liked the guidance revisions at Walmart, but we remain cautious on the tariff impact on its business given an unchanged adjusted operating income growth target, despite a better top-line view. The high end of our fair value range stands at $113 per share.
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