WMT Shares Slip After-Hours On Weak Guidance, So Why Did This Analyst Raise Its Price Target?

• Truist said that Walmart ended 2025 on "a strong note," adding that the company’s Q4 U.S. comparative sales increased 4.6% and it also posted a slight acceleration in stacked transactions.
• Given its track record of continuous share gains and an increasingly profitable business model that is also one of the biggest "real asset" plays in the market, Truist said that it remains a buyer of the company. 
• In its latest quarterly report, the retailer said that it expects revenue of $164 billion in the upcoming quarter, versus a street expectation of $172.8 billion, according to data from Fiscal.ai.

Walmart Inc. (WMT) shares extended their decline in after-hours trading on Thursday, slipping 0.06% after ending the day 1.38% lower amid weak first-quarter (Q1) guidance.

In its latest quarterly report, the retailer said that it expects revenue of $164 billion in the upcoming quarter, versus a street expectation of $172.8 billion, according to data from Fiscal.ai. The company forecast adjusted earnings per share of $0.61, compared to expectations of $0.73.

Despite the lackluster outlook, Truist raised its price target on Walmart to $139 from $127 and kept a ‘Buy’ rating on the shares.

Analyst Rationale

Truist said that Walmart ended 2025 on "a strong note," noting that the company’s fourth-quarter (Q4) U.S. comparative sales increased 4.6% and it also posted a slight acceleration in stacked transactions, the analyst told investors in a note, according to TheFly.

Given its track record of continuous share gains and an increasingly profitable business model that is also one of the biggest "real asset" plays in the market, Truist said that it remains a buyer of the company.

Earnings Snapshot

Walmart posted Q4 revenues of $190.7 billion, a 4.9% growth in constant currency. Analysts expected the company to post $175.17 billion in revenues for the quarter.

The company said that its global eCommerce sales grew 24%, led by store-fulfilled pickup and delivery, and marketplace, while its global advertising business grew 37%.

“The pace of change in retail is accelerating. It’s exciting. And our financial results show that we’re not only embracing this change, we’re leading it. For our customers and members, the future is fast, convenient, and personalized,” said John Furner, President and CEO of Walmart.

Meanwhile, Amazon.com Inc. (AMZN) overtook Walmart to become the world’s largest company by sales on Thursday, ending the retailer’s 13-year reign at the top in terms of revenue.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around WMT shares jumped from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours amid ‘extremely high’ message volumes.

Shares of WMT have gained more than 20% in the past year.

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