Walmart Shares Approach Critical Juncture

As the retail behemoth prepares to release its quarterly earnings this week, investors face a dual catalyst that could determine the stock's trajectory: impending leadership transition coupled with crucial financial results.

Market attention centers on Thursday's third-quarter earnings report for fiscal year 2026. Financial experts project earnings per share of $0.61, representing 5.2% growth compared to the same period last year. Revenue expectations hover around $177 billion, marking a 4.5% increase year-over-year. Particularly noteworthy will be the performance of US comparable store sales excluding fuel stations, where analysts anticipate 4.0% growth—a moderation from the 5.3% expansion recorded in the previous year's quarter.

Leadership Transition Timeline

A significant changing of the guard approaches at Walmart's helm. Current CEO Doug McMillon will retire on January 31, 2026, concluding his longstanding tenure. Leadership responsibilities will transfer to John Furner, presently heading Walmart US operations, effective February 1. While McMillon remains available in an advisory capacity through 2027, Furner will assume strategic control. This carefully orchestrated succession signals stability rather than dramatic directional shifts.

Should investors sell immediately? Or is it worth buying Walmart?

Analyst Sentiment Remains Positive

Despite the looming executive transition, market researchers maintain notably bullish positions. The consensus price target ranges between $113 and $114, suggesting approximately 11% upside from current trading levels. Several prominent financial institutions recently reaffirmed their positive ratings, including JP Morgan ($128 target), UBS ($122), and RBC Capital ($116), all maintaining buy recommendations.

The critical question remains whether the incoming leadership can deliver against these elevated expectations. Thursday's earnings release may provide initial indications, offering insights into both financial performance and strategic direction under the new command structure.