The Future of Walmart’s Stock is Looking “Sparky”…
September 19, 2025
Written by Arjun Shekdar
In the past few weeks, Walmart has done a lot that makes it seem like one of the safer big companies to invest in right now compared to some others.
Walmart (WMT) just released its Q2 FY26 earnings report, which covered the three months ending on July 31, 2025. The company said its total revenue grew by about 4.8% compared to last year, reaching roughly $177.4 billion. In the U.S., sales at stores open at least a year went up 4.6%, which was stronger than most experts predicted. This is important because many retailers are struggling to keep sales steady while shoppers are being careful with their money.
Sales outside the U.S. also improved, especially from Walmart’s eCommerce business and international markets. Even with those gains, the company’s operating income dropped due to higher liability claims and costs. But when looking at adjusted numbers and constant currency, income stayed pretty stable. Walmart also gave better guidance for the future, raising its outlook for full-year growth. They now expect net sales to grow between 3.75% and 4.75% in fiscal 2026, showing they feel confident about the rest of the year.
Another headline recently is Walmart’s push into artificial intelligence (AI). The company is working on what they call “agentic AI.” That means AI systems that can take action on their own with less supervision. Walmart believes this can make a big difference in areas like tracking inventory, improving store operations, and even offering support directly to customers.
One clear example is Walmart’s new AI assistant named “Sparky.” Sparky is being built to help automate different parts of the Walmart app. Over time, it might expand to do even more for shoppers and workers, making Walmart faster and more efficient.
Walmart’s stock price has reacted well to all this. The shares recently reached a 12-month high after analysts raised their ratings and bumped up their price targets, which are now somewhere between $106 and $118. While not every part of Walmart’s earnings beat expectations, the overall guidance and its new AI projects have kept investors feeling positive.
Walmart is also focusing on discounts, or “rollbacks,” especially in grocery items. This helps them draw in shoppers who are watching prices closely. On top of that, about two-thirds of Walmart’s products in the U.S. are sourced domestically, which shields them from tariffs and extra import costs that competitors may face.
Putting this all together—revenue growth, stronger same-store sales, raised outlook, new AI tools, rising stock price, discounting strategies, and smart sourcing—Walmart looks like a relatively low-risk choice. The company seems better prepared than many rivals to handle inflation, cautious spending, and global cost pressures in the months ahead.
Sources:
https://www.retaildive.com/news/walmart-revenue-grows-q2-absorb-tariff-hikes/758267/
https://corporate.walmart.com/news/2025/08/21/walmart-releases-q2-fy26-earnings
https://www.barrons.com/articles/walmart-stock-agentic-ai-6b35e498
https://www.businessinsider.com/why-walmart-is-emerging-as-an-ai-powerhouse-2025-9
