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Walmart dips 10% post-earnings but digital growth and buybacks support long-term upside.

Analyst Insights
06 Jun 2026
24/7 Wall Street
View Source
Neutral
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Walmart shares fell over 10% after Q1 FY27 earnings showed a slight EPS beat but negative free cash flow and inventory buildup raised concerns. Despite this, its digital business—eCommerce, advertising, and memberships—is growing rapidly, driving higher-margin revenue and supporting a strong long-term growth outlook. Management maintained FY27 EPS guidance and authorized a $30B buyback, providing a valuation floor. Investors await Q2 results for clearer direction, with risks including tariffs and continued cash flow weakness.

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