UBS Raises Price Target to $135 After Walmart’s $681B Fiscal 2025 Revenue
UBS maintained its Buy rating on Walmart and raised its price target to $135 from $122. Walmart delivered $681 billion in fiscal 2025 revenue with a 4.3% operating margin ($29.3 billion operating income) and sits on a roughly $937 billion market cap.
1. UBS Reaffirms Buy Rating with Enhanced Price Target
On January 30, UBS reiterated its Buy recommendation on Walmart, increasing its price target from 122 to 135. This upgrade reflects confidence in Walmart’s robust fiscal 2025 performance—$681 billion in revenue and a 4.3% operating margin, up from 3.3% in fiscal 2023—and signals expectations for continued margin expansion driven by higher-growth initiatives such as digital advertising, pharmacy services and supply-chain efficiencies. UBS analysts cited Walmart’s ability to generate over $1.8 billion in revenue per day and sustain operating income north of $29 billion as key factors underpinning their bullish outlook.
2. Leadership Transition Underscores Digital Expansion Ambitions
Walmart announced that John Furner, currently president and CEO of Walmart U.S., will succeed Doug McMillon as CEO of Walmart Inc. effective February 1. Furner’s appointment is viewed by investors as a strategic signal of Walmart’s intent to accelerate its digital transformation: he is known for championing robotics in supply chains, integrating artificial intelligence tools into retail operations and forging partnerships with Silicon Valley technology firms. Under Furner’s leadership, Walmart’s shares have climbed approximately 20% year-over-year, driving the company toward a near-trillion-dollar market valuation and positioning it to compete more aggressively with pure-play e-commerce rivals.
3. Pharmacy Investment Drives Margin and Engagement Growth
Walmart is boosting its healthcare segment by elevating 3,000 associates to pharmacy operations team lead roles, increasing average hourly pay from $28 up to $42 with bonus eligibility, and raising technician compensation ceilings to $40.50 an hour. This initiative aims to free pharmacists for clinical services, strengthen in-store engagement and tap higher-margin healthcare offerings. Since 2016, Walmart has funded over 22,000 pharmacy technician certifications, and the enhanced career pathways—including new clinical research site rollouts this spring—are expected to drive more frequent store visits, bolster recurring prescription revenue and further support Walmart’s goal of extracting more profit per dollar of sales.