Walmart’s recent quarterly results have left investors with a mixed bag, with the big-box retailer’s stock price falling over 9% despite rising revenue and profits.

Price Target Adjusted by JPMorgan

In response to the earnings report, JPMorgan has adjusted its stock price target for Walmart (WMT) to $125, down from $137. The investment bank maintains its ‘Overweight’ rating on the blue-chip stock.

At the time of writing, WMT stock trades around $104, with a market cap of $825 billion. Over the past decade, Walmart has returned over 400% to shareholders, with its stock price outperforming the market.

Why Walmart Stock is Under Pressure

The company’s health and wellness business has weighed on revenue and margins in fiscal Q2 of 2027. Walmart’s chief financial officer, John David Rainey, attributed the impact of new maximum fair pricing regulation on total comparable sales by 125 basis points in the quarter, worse than the 100 basis point hit the company had planned for entering the year.

Walmart U.S. comparable sales came in at 2.6% for the quarter, with the pharmacy headwind masking otherwise strong performance across grocery, general merchandise, and e-commerce. CEO John Furner called it a good quarter overall, with sales growth at the top end of guidance and adjusted operating income up 17.4% in constant currency.

Walmart’s C-Suite Looks Beyond Pharmacy Drag

JPMorgan’s decision to maintain an ‘Overweight’ rating on Walmart’s stock while cutting its short-term price target rests on the idea that the company has more ways to make money than it used to, and those newer businesses are growing fast enough to offset the pharmacy drag.

Some key growth drivers include:

• Global advertising revenue jumped 38% in the quarter.
• Marketplace sales in the U.S. climbed 52%.
• Membership income grew nearly 17% worldwide, with Walmart Plus posting its best first-half membership growth in the program’s history.

What Next for Walmart Stock Price?

Out of the 32 analysts covering Walmart stock, 29 recommend ‘Buy’, and three recommend ‘Hold’. The average WMT stock price target is $130, indicating an upside potential of 25% from current levels.

Notably, JPMorgan’s takeaway is that the selloff has run its course, and the firm expects Walmart’s trends to improve as advertising, marketplace, and membership keep scaling, giving the stock a path forward even with a lower price target attached.