Prediction: Walmart Will Rejoin the $1 Trillion Club by 2027. Here's Why It's a Great Buy Now.

Walmart (NASDAQ: WMT), the world's largest brick-and-mortar retailer, became a trillion-dollar company on Feb. 3, 2026. But by May 21, it had dropped out of that elite club. Let's see why that happened -- and why Walmart will become a trillion-dollar company again by 2027.

What happened to Walmart over the past few years?

Walmart operates more than 10,800 stores and warehouse clubs across 19 countries. Most of its revenue comes from its namesake U.S. stores. The company's Sam's Club stores compete against Costco in the warehouse club market, and it operates a wide range of e-commerce websites and smaller regional banners overseas.

Image source: Walmart.

Walmart pulled ahead of other brick-and-mortar retailers and kept pace with Amazon (NASDAQ: AMZN) by upgrading its e-commerce platform, using its stores to fulfill online orders, launching more private-label products, and renovating its stores. It also matched Amazon's prices, expanded its own Walmart+ subscription service to counter Amazon Prime, and used AI to upgrade its shopping app, logistics services, and inventory management capabilities.

From fiscal 2022 to fiscal 2026 (which ended this January), Walmart's revenue and adjusted EPS grew at CAGRs of 5.6% and 5.3%, respectively. It achieved that stable growth even as inflation, trade conflicts, and other macro headwinds curbed consumer spending.

During that period, its Walmart U.S. and Sam's Club banners grew steadily. Its international sales growth stalled in fiscal 2022 and 2023 as it divested some of the segment's weaker businesses, but that leaner business thrived again over the following three years.

Data source: Walmart. Comps growth excludes fuel sales.

What will happen to Walmart over the next few years?

For fiscal 2027, Walmart expects its net sales to rise 3.5%-4.5%, its adjusted operating income to improve 6%-8%, and its adjusted EPS to grow 4.2%-8%.

Walmart's outlook remains stable, but concerns about rising fuel and fulfillment costs, weaker consumer sentiment, and its high valuation caused it to drop out of the trillion-dollar club after it reported first-quarter earnings on May 21. However, Walmart has bounced back from plenty of recessions and economic downturns since its public debut in 1970 -- and its ongoing brick-and-mortar, digital, and AI upgrades should support its long-term growth.

For fiscal 2027, analysts expect Walmart's revenue and adjusted EPS to grow 6.5% and 10.1%, respectively. Those higher average estimates suggest that analysts believe Walmart is underpromising to overdeliver. The ceasefire and peace talks between the U.S. and Iran could also reduce oil prices -- which would reduce inflation, take rate hikes off the table, and stabilize consumer spending. Those catalysts could all help Walmart easily beat its own estimates.

For fiscal 2028, analysts expect Walmart's revenue and adjusted EPS to rise 4.6% and 13.1%, respectively. The bulls expect its AI and automation efforts, expansion of its higher-margin advertising business, and rising retention of more affluent customers to boost its profits.

Why can Walmart easily rejoin the $1 trillion club?

As of this writing, Walmart trades at $117 per share with a market cap of $932 billion. Its stock isn't cheap at 40 times forward earnings, but it usually trades at a premium to its peers because it's considered a safe-haven stock and a "best in breed" play in the retail sector.

If Walmart matches analysts' estimates for fiscal 2028 and still trades at 40 times its current year's earnings next June, its stock will rise 13% and boost its market cap to $1.05 trillion. Therefore, if you expect Walmart to keep growing -- as it did for decades -- it's a great time to buy its stock as investors fret over its near-term challenges.

Leo Sun has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Costco Wholesale, and Walmart. The Motley Fool has a disclosure policy.