Bernstein SocGen Group analyst reiterated Walmart’s (NYSE:WMT) Outperform rating, emphasizing the company's ability to leverage its scale to deliver value to consumers while achieving profitability in its e-commerce operations.

Proprietary analysis suggested that Walmart’s U.S. e-commerce business is nearing breakeven on a subsidized contribution basis. The retailer’s ongoing investments in fulfillment automation, economies of scale for last-mile delivery, and the expansion of high-margin alternative revenue streams are expected to push its U.S. e-commerce segment into profitability within the next one to two years.

Walmart’s strategic focus on omni-channel retailing is anticipated to drive meaningful improvements in operational efficiency. As these investments mature, the company’s earnings before interest and taxes (EBIT) growth is projected to significantly outpace its sales growth, underscoring the long-term benefits of its strategy.