Walmart's No. 2 Ranking Hides a Digital Transformation Story

The article argues that Walmart’s ranking as the No. 2 revenue company behind Amazon obscures a more important story: its ongoing digital transformation. Walmart Connect is becoming a major profit engine, with FY2026 ad revenue up 46% to $6.4 billion and now contributing roughly one-third of operating profit alongside membership income. The company’s 4,600+ stores support same-day delivery and curbside pickup, giving it a fulfillment advantage that strengthens omnichannel growth. Sam’s Club is presented as proof of concept, with digital engagement, Scan & Go adoption, and membership growth all rising sharply. Despite a post-earnings selloff of about 7% after FY2027 Q1 guidance disappointed, the stock found support near its 200-day moving average, and analysts still see upside to a $138.85 consensus target. Overall, the piece is bullish on Walmart’s long-term rerating potential as digital and ad revenue reshape the business mix.