Walmart Inc: Recently announced price investments were part of the original plan

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Walmart Inc: Recently announced price investments were part of the original plan

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Walmart Inc

Recently announced price investments

were part of the original plan

Maintain Rating: BUY | PO: 144.00 USD | Price: 110.65 USD

WMT investing in pricing…as they always do 07 July 2026

Walmart’s news release that hit yesterday highlighting select price investments across Equity

grocery, household essentials, and general merchandise does not impact guidance and

we see no incremental margin risk from these actions. The dollars used to fund the price Christopher Nardone Research Analyst

investments will come from a combination of dollars already incorporated in the initial BofAS

guidance provided in February in addition to tariff refunds that are starting to trickle in +1christopher.nardone@bofa.com646 743 2016

(which were not contemplated when the original guidance was provided). Madeline Cech

Tariff refunds to help fund price investments ResearchBofAS Analyst

On the 1Q earnings call, WMT sized the expected tariff refunds at “less than half of one +1madeline.cech@bofa.com646 855 5219

percent of annual US sales”. Including WMT US and Sam’s Club, this accounts for

roughly $3bn. Walmart is making price investments across the business but the release

highlights an added focus on grocery. In our view, this is the quickest way for the

Stock Datacompany to get money back to consumers and signals the company is playing offense in

a highly competitive grocery environment. This investment in price is consistent with Price 110.65 USD

Walmart’s long-standing strategy of investing in price to help drive volume growth. Price Objective 144.00 USD

2Q comps incorporate improving LFL grocery inflation Date Established 21-May-2026

Investment Opinion B-1-7