Walmart Inc. (NASDAQ:WMT) is included among the 16 Best Dividend Stocks with Rising Payouts.
Niloo / Shutterstock.com
On February 17, Rothschild & Co Redburn raised its price recommendation on Walmart Inc. (NASDAQ:WMT) to $150 from $110. The firm reiterated a Buy rating on the shares. In a research note, the firm said Walmart’s digital initiatives could support 14% annual earnings growth through 2028. The analyst also said the company has “multiple levers” to drive that expansion, with AI offering additional upside over time.
During Walmart’s Q4 2025 earnings call, CEO John Furner said the company delivered steady growth. Revenue increased 4.9% in constant currency, with eCommerce playing a key role. Online sales rose 24%, while adjusted operating income grew even faster, up 10.5%. He also noted that each of Walmart’s three business segments posted profit growth that exceeded its respective sales gains.
Furner pointed to disciplined inventory management as another positive sign. Inventory rose 2.6% at the end of the quarter, which was about half the pace of sales growth. He said Walmart continued to gain market share and saw strong performance across its marketplace platform, advertising business, and membership programs. The company also reported increased use of its fast delivery services. The number of customers choosing delivery within three hours climbed more than 60% over the past year.
Furner also spoke about the impact of Sparky, Walmart’s AI-powered shopping assistant. He said customer engagement improved with the tool, and shoppers who used Sparky had an average order value about 35% higher than those who did not.
Walmart Inc. (NASDAQ:WMT) operates as a technology-driven omnichannel retailer. The company runs retail stores, wholesale clubs, eCommerce platforms, and mobile apps across the United States and international markets, including Africa, Canada, Central America, Chile, China, India, and Mexico.
While we acknowledge the potential of WMT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 13 Best Roth IRA Stocks to Buy Now and 13 Cheapest Dividend Aristocrats to Invest in
Disclosure: None.
