Walmart (WMT) is no longer just a place to shop for groceries. The retailer now also offers prescription drugs, online orders, advertising, and even AI-powered shopping.
Last week, John Furner, the president and CEO of Walmart, alongside Steph Wissink, the company’s senior vice president of investor relations, met with Bank of America in Boston. During the meeting, they talked about the company’s market share, pricing, pharmacy pressure, and its push into agentic commerce.
After listening to their explanations, BofA has a clearer view of where the retailer could be heading next. Here’s what Furner’s message was all about.
Walmart’s share gains in grocery and general merchandise
Furner told BofA that Walmart’s market share gains in the first half of 2026 were actually stronger than in any of the past three or four years, even though its reported comparable sales growth slowed down. BofA research analyst Christopher Nardone, who covers the retail sector, wrote in a BofA Global Research report shared with me that management “struck a positive tone when discussing the pace at which the company is taking market share in grocery and general merchandise.”
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In the grocery business, Walmart’s prices are becoming lower than its rivals’, and the company’s same-store sales are growing in the mid-single digits, which is faster than the broader market.
When it comes to general merchandise, Walmart’s online marketplace is up 50%. Stripping out its fast-growing marketplace, BofA estimates Walmart’s general-merchandise comps rose 5% to 6% in the quarter — well above the low-single-digit figure in the headline number.
Furner also said customer spending was quite stable. The business saw enough sales during the back-to-school season, and unlike the 2022 oil crisis, which caused shoppers to drastically cut back on spending, customers remain steady this time around.
The pharmacy pressure that will weigh on Walmart’s reported comps
The CEO mentioned that the health and wellness business will affect overall sales for the next six quarters. This is mostly due to the Most Favored Nation (MFN) drug pricing policy.
Walmart confirmed that the government’s MFN drug pricing policy removed about 80 basis points from its U.S. same-store sales growth.
The company also expects a reduction of around an 80-basis-point hit in the second half, rising to about 125 basis points next year as some GLP-1 drugs come under the policy.
Walmart runs one of the biggest pharmacy networks in the country, so these kinds of price cuts affect its sales even when the number of prescriptions remains stable.
Why Walmart’s e-commerce margins are catching up to its stores
The company’s e-commerce business now brings in more than $150 billion in annual sales, Yahoo Finance reported, and is still growing above 20%.
Nardone wrote that the whole e-commerce business, when you exclude advertising, should start making a profit this year. BofA believes Walmart is only a couple of years away from the point where its online business and its physical stores earn similar profit.
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In the second quarter, Walmart reported revenue of $187.94 billion, an increase of 5.9% from a year earlier, according to Yahoo Finance. The company also beat expectations on both earnings and revenue.
How Walmart is positioning for agentic commerce
BofA wrote that the recent launch of Muse, Meta’s new shopping assistant, had “resurfaced the conversation of who are the winners and laggards in retail in an agentic commerce world.” Walmart officially partnered with Meta as a retail/commerce connector for Muse, which means it allows the tool to shop on Walmart’s site.
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Walmart has already linked up with several AI platforms and partnered with outside agents so the company shows up wherever shoppers are looking. It even launched its own shopping assistant called Sparky, Walmart announced. “Low pricing, a wide product assortment, and fast delivery speeds should move WMT ahead of most retailers,” Nardone wrote.
BofA also noted that Vizio, Walmart’s smart TV maker, and the company’s link to the Vibe.co ad platform serve as good sources of customer data and ad reach that most other retailers don’t have.
What Walmart’s outlook means for WMT stock
BofA kept its Buy rating on WMT and held its target at $126, down from $144 before the August quarter. That target still suggests the bank expects more than 20% in potential gains from recent levels. However, for that to happen, Walmart needs to grow faster than its near-term pressures.
The pharmacy pricing issue will keep showing up in the company’s reports until the end of 2027. Pressure from oil prices could also reduce profit margins if Walmart absorbs some vendor price increases. Although the agentic commerce opportunity is promising, it is still unproven on a large scale.
