Is Walmart stock a buy ahead of earnings?

One of the top-performing blue-chip stocks of 2026, Walmart (NYSE: WMT), is scheduled to unveil its next quarterly earnings report on February 19, raising the question of whether WMT stock is a buy ahead of the event.

Possibly the biggest reason for concern for investors ahead of the retail giant’s next filing is the equity’s staggering success in recent weeks. 

Indeed, while most of the typical top-performing blue-chips have been struggling to retain their high valuation, Walmart has been soaring and even made history by becoming the first retailer to cross a $1 trillion market capitalization.

Additionally, comparing WMT shares with the broader market demonstrates just how much of a standout the supermarket giant has been since 2026 started. 

Walmart stock is up 20.18% in the year-to-date (YTD) chart, while the S&P 500 and Dow Jones Industrial Average (DJIA) benchmark indices are down 0.33% and up 2.31% within the same timeframe. 

Is Walmart stock a buy ahead of  February earnings?

The elevated valuation strongly indicates that WMT equity is at risk of a sudden pullback should the earnings report even moderately disappoint. Recent filings by other major firms demonstrated just how vulnerable stocks even if the majority of a publication is positive.

Microsoft (NASDAQ: MSFT) is a standout example of the trend since the firm wiped more than $300 billion from its market cap within a day despite strong quarterly results, and thanks to the revelation that the technology giant is severely exposed to OpenAI.

While Walmart would traditionally be safe from such artificial intelligence (AI)-related shocks, the firm recently underwent a business transformation that saw it lean into e-commerce and technology.

Fortunately for hopeful WMT investors, however, the retailer remains a relatively safe bet in both the near-term and the long-term. To begin with, Walmart beat analyst earnings per share forecasts in three out of the last four quarters, meaning another beat is relatively likely.

Additionally, the blue-chip giant is in an enviable position where it can benefit from a strong economy and market as much as from wider weakness. 

Indeed, under favorable conditions, Walmart is likely to see its business volume – and especially its more novel divisions such as e-commerce – grow. During a downturn, however, Walmart can also expect strong demand as more consumers would feel compelled to leverage the giant’s trademark ‘great value’ prices.

Wall Street weighs in on Walmart stock ahead of next earnings

Still, despite the momentum it had accrued, WMT stock is perhaps better seen as a defensive pick. While Wall Street as a whole is positive toward the firm with an average ‘Strong Buy’ rating, the 12-month price targets are, as a rule of thumb, more measured.

Overall, Walmart shares are expected to retrace 0.63% to $133.04 in the next year, and even some of the February ‘Buy’ ratings forecast a moderate pullback. 

For example, Bernstein’s Zhihan Ma forecasted that WMT would drop to $129 despite reiterating the ‘Buy’ rating on February 12. Additionally, even the most bullish forecast of $147, assigned earlier this month by Citi (NYSE: C), estimated that Walmart stock would rally by only another 9.79% in 2026.

Though meeting the target would itself constitute a respectable rise, it is worth noting that WMT shares are already up 20% in 2026 despite the year being less than two months old.

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