Walmart Incorporated (NYSE: WMT), the global retail giant, has garnered attention once again with its resilient performance and strategic growth initiatives. Argus Research has reaffirmed a BUY recommendation for Walmart, increasing its target price to $100 from the previous $80. This confidence reflects Walmart’s robust financial performance, innovative growth strategies, and its ability to navigate a challenging retail environment.

Key Performance Metrics Reflect Growth
Strong Quarterly Results Surpass Market Expectations
In fiscal Q3 2025, Walmart delivered standout results. Revenue surged by 5.5% to $169.6 billion, driven by a 22% increase in U.S. e-commerce sales. Operating income rose by 8.2% to $6.7 billion, with gross margins expanding to 24.2%, showcasing effective inventory management and profitability from digital channels.

Revised Guidance Indicates Continued Momentum
Walmart raised its FY25 EPS guidance to $2.47, with FY26 projections at $2.72. This upward revision highlights the company’s confidence in sustaining its growth trajectory amid volatile market conditions.

Strategic Growth Drivers
Walmart+ Memberships Expand
The company’s subscription service, Walmart+, continues to gain traction. Expanded offerings, including partnerships like Paramount for streaming services, have enhanced the program's value proposition, driving customer loyalty.

E-Commerce Innovation Drives Revenue
Walmart's e-commerce strategy remains a key growth pillar. Global online sales grew 27%, fueled by third-party marketplace transactions and optimized store-fulfilled deliveries.

Focus on Higher-Income Customers
Approximately 75% of Walmart’s Q3 market-share gains came from households earning over $100,000 annually, underscoring the company’s ability to attract and retain affluent shoppers.

Competitive Positioning in a Dynamic Market
Balancing Physical and Digital Retail
Walmart's hybrid model of physical stores complemented by a strong digital presence sets it apart. While competitors like Amazon and Costco present challenges, Walmart's logistics network and competitive pricing strengthen its market position.

International Growth Enhances Revenue Diversification
With 19% of revenue from international markets, Walmart continues to expand its global footprint, focusing on high-growth regions and optimizing operations for profitability.

Financial Strength and Valuation
Solid Balance Sheet Supports Growth
Walmart maintains $10 billion in cash reserves with a debt-to-capital ratio of 40%. The company’s consistent dividend growth since 1974 and AA credit ratings underscore its financial resilience.

Attractive Valuation Metrics
Currently trading at 36 times FY25 EPS, Walmart presents an attractive valuation for long-term investors, considering its steady growth and robust dividend history.

Risks and Challenges to Monitor
Macroeconomic and Competitive Risks
Inflationary pressures and shifts in consumer discretionary spending could challenge profitability. Additionally, Walmart faces ongoing competition from Amazon’s aggressive expansion in groceries and general merchandise.

Currency Volatility in International Markets
With nearly one-fifth of revenue derived internationally, currency fluctuations remain a potential headwind.

Why Walmart Remains a Strong Buy
Walmart’s ability to consistently deliver strong financial performance, coupled with its innovative strategies and focus on customer satisfaction, cements its position as a market leader. The raised target price of $100 reflects Argus Research’s confidence in Walmart's continued growth and value for investors.