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The Retail Model Is Changing. Here's What Investors Need to Know About What's Driving Growth at Walmart and Target.

Growth isn't just coming from store purchases.

The Retail Model Is Changing. Here's What Investors Need to Know About What's Driving Growth at Walmart and Target.

Published August 26, 2026 · Category: Finance

Overview

Walmart (NASDAQ: WMT) and Target (NYSE: TGT) both released earnings last week, and while they both reported strong growth, they got very different market reactions. Walmart stock fell 10% after earnings in one day, while Target stock gained 10%.

The market was unimpressed by Walmart's 5.9% sales growth in the 2026 fiscal second quarter (ended July 31), as U.S. comparable sales (comps) growth decelerated to 2.6% due to lower-priced pharmaceuticals. Target, on the other hand, had some of its best performance in years, with a 5.3% increase in sales in fiscal Q2 2026 (ended Aug. 1), driven by a 3.8% increase in comps. Target is in recovery mode, and investors are excited about its turnaround.

Image source: Walmart.

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Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.