10:56 AM EST, 11/21/2025 (MT Newswires) -- Walmart's ( WMT ) long-term profitability outlook is strengthening, supported by high-margin businesses such as digital advertising and its third-party marketplace, along with improving core e-commerce performance, BofA Securities said in a Friday note.

The firm said Walmart ( WMT ) topped expectations in Q3, reporting adjusted earnings per share of $0.62 versus estimates of $0.60, while US same-store sales ex-fuel rose 4.5%, ahead of the 3.8% forecast, driven by higher transactions and ticket growth.

BofA raised its 2026 adjusted EPS forecast to $2.61 and expects 4.2% US comps in Q4, supported by strong holiday momentum and broad gains across grocery, general merchandise, and health & wellness, aided by private-label and marketplace growth. Analysts surveyed by FactSet expect $2.63.

E-commerce jumped 28% year over year, while Sam's Club delivered 3.8% comp growth ex-fuel on 3.9% higher traffic. Gross margin inched up to 24.2% despite international headwinds, the report added.

The firm maintained a buy rating on the stock with a $125 price objective.

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