We lift our 12-month target to $72 from $68, 27.2x our FY 26 (Jan.) EPS of $2.65 (up from $2.61; FY 25’s up to $2.46 from $2.42) vs. the 24x historical average. FQ1 (Apr-Q) adj-EPS of $0.60 (+22% Y/Y) beat the $0.52 consensus, with Walmart U.S. comp sales up 3.8% (+3.8% transactions; 0% average ticket) vs. 3.5% consensus. Adj-operating income grew 14% Y/Y, with margin +30 bps Y/Y to 4.4%. While WMT raised its FY 25 guidance, we think it is still conservative given the strength and momentum in all three segments (i.e., Walmart U.S.; International; Sam’s Club). We keep a Buy, as we see market share gains continuing, not just in grocery, but also in general merchandise due to WMT’s rapidly growing online marketplace. We believe WMT has plenty of long-term growth in its higher-margin services streams (e.g., advertising, fulfillment services, data analytics, subscriptions), which, in addition to changes in mix and investments in automation, should result in strong operating margin expansion over the next few years.