Walmart Names John Furner CEO as Shares Up 20% Near $1 Trillion
Walmart has appointed John Furner to succeed Doug McMillon as CEO of Walmart Inc. on February 1, 2026, marking a leadership shift towards a tech-savvy management approach. Shares have risen 20% year over year as the company nears a $1 trillion market valuation.
1. UBS Reaffirms Buy Rating and Lifts Price Target
On January 30, global investment bank UBS maintained its Buy rating on Walmart while raising its 12-month price target from $122 to $135. The upgrade reflects confidence in Walmart’s fiscal 2025 results, which featured a record $681 billion in revenue and a 4.3% operating margin. UBS analysts highlighted that Walmart’s revenue growth and margin expansion place it favorably between peers in the discount retail sector, underscoring the company’s ability to convert scale into profitability.
2. Leadership Change Underscores Digital Ambition
Walmart has announced that John Furner, currently head of Walmart U.S., will succeed Doug McMillon as CEO of the entire organization on February 1. Furner’s track record of championing emerging technologies—ranging from in-store drones to AI-assisted logistics—signals management’s intent to accelerate digital transformation. His replacement at Walmart U.S., David Guggina, brings deep eCommerce and supply chain expertise, indicating a strategic shift toward integrating Walmart’s online and bricks-and-mortar operations.
3. Operating Margin Expansion Drives Profitability
Over the past two fiscal years, Walmart has increased its operating margin from 3.3% to 4.3%, generating an additional $6.8 billion in operating income on the same $681 billion revenue base. Management attributes this improvement to higher-margin initiatives, including growth in advertising services, expansion of the pharmacy division, and efficiency gains from AI-driven inventory management. Sustained margin gains will be critical for investors watching potential pressure from inflation and competitive pricing.
4. Healthcare Investment Accelerates Through Pharmacy Pay Hikes
Walmart has elevated 3,000 pharmacy roles to operations team lead positions, boosting average hourly wages from $28 to as much as $42 and enabling pharmacists to focus on patient care. Simultaneously, the company expanded its pharmacy technician pay scale to a maximum of $40.50 per hour and has sponsored over 22,000 technician certifications since 2016. These measures aim to strengthen service delivery across nearly 4,600 in-store pharmacies and position Walmart as a growing player in health and wellness services.