Retail giant Walmart (WMT) saw its stock price edge up on Monday, pushing its market capitalization above that of Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) for the first time since 2013, returning it to the upper echelons of U.S. market values. As of Monday’s close, Walmart’s stock rose 0.33% to $127.92, giving it a total market capitalization of approximately $1.02 trillion, higher than Berkshire’s roughly $1.017 trillion, making it the ninth-largest publicly traded company in the United States. On the same day, Berkshire’s Class B shares fell 0.53% to $472.08, while its Class A shares declined 0.68% to $706,750.
Over the past year, Walmart’s market cap had significantly trailed Berkshire’s, but as its stock price continued to rise, the gap gradually narrowed. So far this year, Walmart’s stock has accumulated a gain of about 15%, with its market value rapidly increasing from approximately $887.9 billion at the start of 2026 to over $1 trillion, achieving the overtake. This marks Walmart’s first time ranking as the ninth-largest U.S. company by market cap since January 2021, and its first time surpassing Berkshire in market value since April 2013.
Market analysts believe Walmart’s recent strong stock performance is closely related to fundamental improvements and heightened growth expectations. The company announced last week that it would increase investment in its U.S. stores, planning to renovate 650 locations and open about 20 new stores by early 2027. Analysts have recently upgraded Walmart’s rating to “buy,” anticipating that the company’s sales and operating profits for the current fiscal year could exceed previous guidance. Walmart expects earnings per share for fiscal year 2027 to be between $2.75 and $2.85, higher than the $2.64 reported for fiscal year 2026; operating profit is projected to be between $32.96 billion and $33.58 billion, also above the previous fiscal year’s $31.1 billion.
Walmart has increased its dividend for 53 consecutive years, a period that includes wars, financial crises, and a pandemic. Its pricing power is a key factor: with 270 million customers visiting stores and its online site each week, the company can dictate costs to suppliers to maintain its low-price reputation. Its private label brands also help set low prices, forcing suppliers to think twice before raising prices significantly. Additionally, Walmart generates several billion dollars in net income annually, which can be used for share buybacks and dividend payments. The current dividend yield of about 0.7% is not eye-catching, but it indicates that the company is not overextending itself by paying an unsustainable dividend. Beyond its core business, Walmart’s global advertising operation generated $6.4 billion in revenue during the fiscal year ending January 31, 2026, and the Walmart+ membership service brings in direct revenue while increasing average transaction size.
Based on a current forward price-to-earnings ratio of 42.3 times, the stock does appear expensive. However, with its pricing power, consistent net income, and reliable dividend growth, Walmart may be worth paying a premium for in uncertain times.
