TLDRs;
- Walmart stock remains under pressure after a disappointing comparable-sales performance.
- Tap-to-Pay launches August 24 across selected Walmart and Sam’s Club stores.
- Strong e-commerce growth provides some support for Walmart’s broader growth outlook.
- Analysts remain bullish despite cutting several Walmart price targets.
Walmart Inc. (WMT) stock remained under pressure after a difficult earnings week, with investors digesting softer-than-expected U.S. comparable sales even as the retailer prepares to introduce contactless payments at stores across the country. The company’s shares finished the week down roughly 9.8%, wiping an estimated $90 billion from its market value.
The pressure came despite several areas of strength in Walmart’s latest quarterly results. Revenue climbed 5.9% to $187.9 billion, while U.S. e-commerce increased 24% and store-fulfilled delivery jumped 40%. However, U.S. comparable sales excluding fuel grew only 2.6%, below the 3.8% increase analysts had expected.
The disappointing sales figure overshadowed the retailer’s stronger digital performance and contributed to a sharp reassessment of the stock. Walmart closed around $103.94 on August 21, compared with $115.27 a week earlier.
Tap-to-Pay Rollout Begins Monday
Against that backdrop, Walmart is moving ahead with a major payment convenience upgrade. Beginning August 24, selected Walmart and Sam’s Club locations in the United States will begin accepting contactless payments using cards, smartphones and smartwatches.
The rollout will also support Google Pay, giving customers another way to complete purchases without relying exclusively on Walmart’s proprietary payment system.
Walmart expects the feature to reach all U.S. Walmart and Sam’s Club locations by the end of 2026. Contactless payments are then expected to expand to Walmart and Sam’s Club fuel stations by mid-2027.
The move addresses a long-standing gap in Walmart’s checkout experience. However, its financial significance remains uncertain because the company has not provided specific estimates for additional revenue, cost savings or customer adoption.
Instead, the immediate benefit could come from making transactions faster and more convenient. For a retailer processing enormous numbers of purchases, even small improvements in checkout efficiency could potentially improve the customer experience.
Earnings Results Remain Mixed
Nevertheless, the market reaction shows that investors are currently more focused on sales momentum than payment technology.
Walmart generated $187.9 billion in revenue during the quarter ended July 31, representing 5.9% year-over-year growth. Its U.S. e-commerce business delivered particularly strong momentum, rising 24%, while store-fulfilled delivery increased 40%.
Global advertising also performed strongly, increasing 38%. Adjusted operating income grew 17.4% on a constant-currency basis.
However, the 2.6% increase in U.S. comparable sales became the central concern. The result missed expectations and raised questions about whether Walmart can maintain the pace of growth investors have come to expect from the retail giant.
Furthermore, some of the reported improvement in operating income benefited from tariff refunds. Walmart indicated that it intends to use the remaining refunds to support lower prices, meaning investors may continue watching underlying operating performance closely.
Analysts Remain Bullish Despite Cuts
Even after the stock’s sharp decline, Wall Street analysts have generally maintained positive views on Walmart.Goldman Sachs retained a Buy rating while setting a $130 price target. BofA Securities also maintained a Buy rating with a $126 target, while BMO Capital Markets kept an Outperform rating with the same target.
Baird and Wolfe Research likewise maintained Outperform ratings, although their targets were lowered to $120 and $115, respectively.
Those targets suggest analysts still see potential upside from Walmart’s depressed post-earnings price. However, the reductions also indicate that expectations for near-term sales growth have become more cautious.
For investors, the key question is whether Walmart can translate its strong e-commerce and delivery growth into broader sales momentum. The company’s digital businesses remain important strengths, but weaker comparable-store growth could make it harder to justify the stock’s previous valuation.
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