Walmart (WMT) is looking into launching its own stablecoin. 

According to reports, retail giants Walmart and Amazon (AMZN) are both considering creating their own stablecoins as a way to avoid billions in credit card fees. Plus, stablecoins, which are digital currencies tied to the U.S. dollar or other stable assets, offer faster, cheaper, and more secure payments. 

If Walmart can add a stablecoin to its business, it could help protect profits from rising payment costs and make shopping smoother for its customers. This financial flexibility would also reinforce Walmart’s commitment to shareholders. The company’s recent 13% dividend hike to $0.94 per share marks its 52nd consecutive year of dividend growth, underscoring its Dividend King status and long-term financial strength.

With new rules like the proposed Genius Act moving through Congress to set clear standards for stablecoins, Walmart’s early move in this space could give it a real edge as payments keep changing. Let’s dive deeper. 

The Numbers Powering Walmart’s Market Dominance

Walmart’s (WMT) business model centers on keeping prices low and running its operations as efficiently as possible. The company uses its huge supply chain, wide store network, and growing digital platforms to reach millions of shoppers every day. 

This focus on efficiency shows up in Walmart’s stock performance. Over the last 52 weeks, the stock has climbed 39% and it’s up 4.3% so far this year. 

When it comes to valuation, Walmart has a forward price-earnings ratio of 36.4x, much higher than the sector average of 16.51x. This shows that investors are willing to pay more for Walmart’s steady performance and growth potential. Even with its massive size, Walmart keeps rewarding shareholders. The company recently raised its annual dividend by 13% to $0.94 per share, marking 52 straight years of increases. The current yield is 1%, with a payout ratio around 32%, which shows Walmart’s balance between stability and investing for the future.

The numbers back this up. In the most recent quarter, Walmart brought in $165.6 billion in revenue, up 2.5%. Global e-commerce sales jumped 22%, and its advertising business grew 50%. Membership income grew nearly 15%, and operating income rose 4.3%, thanks to stronger margins and growth in both physical and online sales.

Growth Catalysts and the Stablecoin Advantage

Walmart pays billions of dollars each year in credit card fees to payments giants like Visa (V) and Mastercard (MA). Moving to offer a proprietary stablecoin or an existing one as an option at checkout could help reduce these fees, something that Walmart has long been interested in doing. 

Additionally, Walmart has a large base of regular shoppers. It would have new access to transaction data through stablecoin payments, which it could use to optimize its offerings. It would potentially be able to incentivize customers by tying in some sort of payment rewards or loyalty program to the stablecoin. And, some experts think a Walmart stablecoin could help the retailer make a bigger move into offering financial services for its customers. Several years ago, the retailer sought an industrial bank charter but was shot down by regulators. 

Regulators will once again pose a challenge if Walmart decides to move forward with a stablecoin, and customer adoption could be hard to win. However, Wall Street seems generally enthusiastic about this opportunity for Walmart and other retailers like Amazon and even Expedia (EXPE), which has also explored a stablecoin. 

Analyst Insights and the Road Ahead

Walmart is sticking to its full-year forecast for its fiscal 2026, aiming for sales growth between 3% and 4%. The company expects Q2 sales growth of 3.5% to 4.5%. Analysts think earnings per share will keep rising, with the current quarter’s average estimate at $0.72, which is a 7.46% jump from last year. Looking ahead, the average forecast is $2.59 for 2026 and $2.90 for 2027, showing nearly 12% growth.

UBS analyst Michael Lasser is especially positive about Walmart. He’s kept his “Buy” rating and set a $110 price target for the stock. Lasser points to Walmart’s steady revenue growth, better operating income, and strong free cash flow as reasons for his confidence. 

The overall view among analysts is very upbeat. The 38 surveyed rate Walmart as a consensus “Strong Buy” with an average price target of $109.97. That implies roughly 16% upside potential from here. 

Conclusion 

Walmart‘s relentless push for innovation and rock-solid financials prove that this Dividend King can adapt and thrive in any environment. For investors looking for a strong, forward-thinking company that’s not afraid to shake up the status quo, Walmart stands out as a clear leader ready to shape the future of retail.