Walmart (WMT) remains "well-positioned" to gain share and expand margins, with the company's Q4 results largely in-line with expectations. RBC Capital Markets said in a research note.

Noting positives from the Q4 print, RBC said that the company's operating profit grew 10.5%, which was over double the pace of constant currency sales growth of 4.9%, aided by a business mix towards ecommerce with advertising and membership continuing to contribute one-third of the quarterly operating profit.

Walmart's fiscal 2027 guidance is "appropriately prudent," estimating constant currency net sales growth between 3.5% and 4.5% with constant currency adjusted operating income growing at 6% to 8%, according to the Thursday note.

RBC said it is modeling fiscal Q1 constant currency net sales growth of 5.4% and adjusted earnings per share of $0.70, compared to the company's guidance ranges of 3.5% to 4.5% and $0.63 to $0.65, respectively.

For fiscal 2027 and 2028, RBC expects constant currency net sales growth of 5.1% for each year and adjusted EPS of $2.98 and $3.34, higher than $2.97 and $3.33, previously.

RBC rated Walmart as outperform with a $140 price target.

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