Walmart stock (NYSE:WMT) is preparing to report its third-quarter fiscal 2026 results on Thursday, Nov. 20. Despite steady performance, the shares have seen little movement recently, rising only about 1.6% over the past three months. Investors are focused on whether the retailer’s broad revenue mix and growth in higher-margin businesses can continue to support profitability in a volatile consumer environment.
Rising costs, including tariffs, have pressured margins, keeping Walmart stock’s momentum subdued. Options markets are pricing in a potential 4.9% swing post-earnings for contracts expiring Nov. 28, slightly above the four-quarter average of 4%. Historically, Walmart stock has seen mixed reactions, falling in two of the past four earnings periods.
Q3 Expectations for Walmart Stock
Walmart heads into Q3 with steady momentum amid economic uncertainty. The company’s value pricing, broad product range, convenience, and diversified revenue streams continue to drive top-line growth. Management forecasts Q3 revenue growth between 3.75% and 4.75%, helped by the VIZIO acquisition.
The retailer’s expansive store network supports both physical and digital sales. In Q2, online sales jumped 25% year-over-year, with U.S. digital sales growing 26%, showing acceleration from previous quarters. Delivery from stores surged 50%, with one in three orders arriving in under three hours and one in five in just 30 minutes. This fast delivery system is powered by Walmart stock’s large store base, which doubles as an efficient fulfillment network.
Walmart’s marketplace business is also expanding, with third-party sales rising nearly 20% as sellers leverage the company’s fulfillment services.
Profitability and Higher-Margin Growth
Despite rising costs, Walmart stock is supported by higher-margin segments like advertising and memberships. Improvements in e-commerce profitability are expected, aided by efficient delivery operations and the growth of Walmart’s advertising business. Membership fees, including Walmart+, are increasingly contributing to the bottom line through higher-tier subscriptions, renewals, and adoption.
Analysts anticipate Walmart will report $0.61 earnings per share in Q3, a 5.2% increase from last year. While Walmart has beaten Wall Street estimates in three of the past four quarters, the most recent results missed expectations by 6.9%.
Is Walmart Stock a Buy, Sell, or Hold?
Walmart stock benefits from its competitive pricing, expanding digital footprint, and higher-margin business segments. The combination of a massive store network with an increasingly efficient online operation positions the retailer for steady long-term growth.
Analysts remain optimistic about Walmart stock ahead of Q3 earnings. However, with a forward price-to-earnings ratio near 39.3 times and projected earnings growth of about 11.9% in fiscal 2027, the stock is not undervalued. Investors may view Walmart as a solid long-term holding, but caution is advised before the earnings release.
In summary, Walmart stock appears well-positioned for continued growth, bolstered by its digital expansion, advertising revenue, and membership offerings. Yet, traders should weigh near-term earnings risks and valuation before making a move.
Featured Image: Megapixl
Author Stephanie Bédard-Châteauneuf 
