Walmart (WMT) stock price rose 1.73% to $119.14 today as the retail giant announced a pay raise for its pharmacy workers. The raise will benefit about 3,000 pharmacy technicians and other workers across 4,600 stores in America. The move aims to attract more skilled workers and strengthen Walmart’s healthcare services.
Investors see this as a signal that indicates the company’s plan to allocate more resources to the health care sector, especially online services and deliveries. Walmart recorded $179.5 billion in revenue in the last quarter. The report indicated significant growth in revenue from the health care sector. Investors are closely watching for the Q4 2026 earnings due on February 19.
3,000 Workers to Benefit From the Pay Rise
Walmart will promote 3,000 pharmacy technicians to a new role of “Pharmacy operations team lead”. Their average hourly pay will be raised to $28 from the previous $22/hour. This can go as high as $42/ hour, depending on store location. These pay raise structures do not include bonuses, implying that workers can potentially earn more.
Regular pharmacy technicians also stand to benefit since they can now earn up to $40.5/ hour. The pay raise, along with Walmart’s programs that pay for certification of skilled workers without degrees, is likely to attract more and more skilled workers, which will take up its service quality by several notches.
Walmart Doubles Down on Healthcare Amid Amazon Rivalry
In 2023, Walmart announced 28 new health centres, and it doubled the number (75+) in 2024. It has invested aggressively in the healthcare sector in recent years by ramping up primary care, dental labs, and telehealth services. Moreover, it sees Amazon as a major rival that can eat up its market share in many sectors.
Amazon is moving into fast-delivery strategies where customers receive same-day delivery for prescriptions. Amazon’s sales of Novo Nordisk ( manufacturer of a blockbuster weight-loss pill) have caught significant attention and seen its increasing penetration into the health care sector. Amazon’s swift “digital fulfillment” strategy has positioned it in head-on competition with Walmart in the $100B+ obesity market.
Walmart continues to double down on the healthcare sector as competition becomes fierce. It is swiftly integrating digital care services with Eli Lilly’s LillyDirect program, expanding telehealth, providing $15 consultation discounts, and offering free delivery for Walmart+ members. The guidance for the next quarter is likely to advance these moves, bolstering its health care market share.
Wall Street Rates WMT ‘Strong Buy’
Wall Street sees an average upside of 6.49% for the Walmart share price with a target price of $126.87. The forecast goes as high as $135 for the target price. Zihan Ma, a top analyst from Bernstein, projects an upside of 8.28% with a target price set at $129. Simeon Gutman from Morgan Stanley projects a better future with target prices going as high as $135 ( a 13.31% upside). Investors are closely watching the earnings report to see how big the retail powerhouse will bet on health care.
