0907 ET - Walmart's initial guidance for the year set a low bar for new CEO John Furner to beat in his first year in the job, according to Mizuho in a note. Other expectations for the year include like-for-like inflation of about 1%, with higher prices across general merchandise being offset by food disinflation, analyst David Bellinger says. He expects food prices to come down as suppliers such as PepsiCo cut prices, and Walmart laps last year's "eggflation." Tech is the other key component of 2026, Bellinger says. The retailer's CapEx intensity should peak this year, as the company continues to invest in automation and AI. While these technologies are still in early innings, the analyst notes they're already beginning to pay off. Automation is boosting margins, and Walmart's AI agent, Sparky, is helping boost average order values. (connor.hart@wsj.com)

(END) Dow Jones Newswires

February 20, 2026 09:07 ET (14:07 GMT)

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