Walmart hits $1 trillion valuation as e-commerce boom accelerates
Retail giant joins exclusive club after 14 consecutive quarters of double-digit online sales growth
Walmart joined the elite ranks of American companies worth $1 trillion on Tuesday, as the retail giant's relentless digital transformation convinced investors its e-commerce business can compete with the sector's dominant players. The Bentonville, Arkansas-based retailer's market capitalization crossed the threshold at 10:17 a.m. Eastern time, marking the first time the 62-year-old company has achieved the milestone, according to MarketScreener.
The achievement caps a remarkable evolution for a company once dismissed by Wall Street as an aging brick-and-mortar giant unable to adapt to the digital age. Walmart shares have climbed more than 58% over the past year, hitting new intraday records above $125 on Tuesday. The stock now trades at 40.9 times trailing earnings, reflecting investor confidence in the company's growth trajectory despite its traditional retail roots.
Driving the valuation surge is Walmart's e-commerce business, which has now delivered 14 consecutive quarters of double-digit growth. In the fiscal third quarter ended October 31, total online sales increased 27% year-over-year, while U.S. e-commerce sales jumped 28%—the seventh straight quarter of growth exceeding 20%. This sustained digital performance has positioned Walmart as a legitimate challenger to Amazon's e-commerce dominance, leveraging its massive physical store footprint for omnichannel capabilities that pure-play online competitors cannot match.
The company's Walmart+ membership program has emerged as a critical growth engine, reaching 28.4 million members in January, a 12% increase from a year earlier. The subscription service, which offers perks like free shipping and fuel discounts, provides Walmart with recurring revenue and higher customer loyalty while creating a data-rich ecosystem to personalize the shopping experience.
Walmart's transformation has extended beyond e-commerce into advertising, healthcare, and financial services, all designed to extract more value from its massive customer base of more than 230 million weekly shoppers. The company's advertising business has grown particularly rapidly, with brands increasingly spending to reach consumers across Walmart's digital platforms and in-store screens. This high-margin revenue stream has helped boost quarterly earnings growth to 35.2% year-over-year, even as overall revenue growth remains modest at 5.8%.
Analysts have largely embraced Walmart's strategy, with 40 of 42 analysts covering the stock rating it a buy or strong buy. The consensus target price of $124.28 suggests limited upside from current levels, but investors continue to reward the company's execution and its ability to generate growth in a challenging retail environment characterized by inflation-conscious consumers and fierce competition.
Walmart becomes one of only a handful of U.S. companies to achieve a $1 trillion valuation, joining technology giants Apple, Microsoft, Alphabet, Amazon, and Nvidia. The milestone underscores how the line between traditional retail and technology has blurred, with Walmart effectively reinventing itself as a hybrid retailer that combines physical scale with digital sophistication. The company's success offers a blueprint for other legacy retailers seeking to navigate the digital transition without abandoning the strengths that built their businesses.
Looking ahead, investors will be watching whether Walmart can maintain its e-commerce growth momentum as the post-pandemic retail environment normalizes. The company faces ongoing competition from Amazon, Target, and emerging digital players, all of which are investing heavily in their online capabilities. However, Walmart's unique combination of store density, supply chain expertise, and growing digital platform provides it with competitive advantages that could sustain its premium valuation for years to come.