Telsey raises Walmart target to $140, cites 24% e-commerce growth and 10.5% profit jump
Telsey Advisory lifted its price target on Walmart to $140 from $135, reiterating an Outperform rating and highlighting its tech strategy that boosts market share. In Q4 FY26 Walmart’s revenue rose 4.9% constant currency with e-commerce up 24% and adjusted operating income up 10.5% as fast-delivery users climbed over 60%.
1. Analyst Upgrade
Telsey Advisory increased its price target on Walmart from $135 to $140 and maintained an Outperform rating, noting the company’s ongoing shift toward a technology-driven retail model. The firm pointed to Walmart’s strategies in marketplace, advertising and membership as key drivers of its expanding market share.
2. Q4 Financial Results
In fiscal Q4 2026, Walmart delivered 4.9% revenue growth on a constant-currency basis, fueled by a 24% surge in e-commerce sales. Adjusted operating income rose 10.5%, with all three business segments reporting profit growth that outpaced their sales increases.
3. Operational Efficiency
Inventory levels at quarter-end increased by just 2.6%, roughly half the pace of sales growth, reflecting disciplined stock management. The number of customers using fast three-hour delivery services grew by more than 60%, underscoring rising demand for rapid fulfillment.
4. Tech Initiatives
Walmart highlighted Sparky, its AI-powered shopping assistant, which drove average order values about 35% higher among users. The company continues to invest in technology enhancements to deepen customer engagement and support long-term efficiency gains.