Wesfarmers share price down 11% from its peak: Buy, hold or sell for 2026?

The Wesfarmers Ltd (ASX: WES) share price is in the green in Tuesday lunchtime trade. At the time of writing, the shares are 2.23% higher for the day, at $84.65 a piece.

For the year-to-date, the shares are now 3.59% higher, and for the year, they are just over 12% higher. But after peaking at an all-time high of $94.76 in August last year, the Wesfarmers share price has dropped 10.83%.

What happened?

Following its peak in 2025, the Wesfarmers share price hopped around a little until the company’s annual general meeting in late October slashed investor confidence and triggered a sharp 15% sell-off. The update revealed that some of Wesfarmers’ business segments saw year-to-date growth, while others faced challenging trading conditions.

The share price has recovered some ground since then, but Wesfarmers was pushed back into the spotlight last week when the AFR reported that it had abruptly called off plans to support the largest franchisee in its Priceline pharmacy network, Infinity Pharmacy Group. 

In a later update, the AFR also said that Wesfarmers reportedly “accused the owner of the largest Priceline franchisee of embarking on a debt-fuelled acquisition spree even as the business teetered on the brink and was falling behind in paying suppliers”.

The news appeared to have temporarily knocked investor confidence, but it quickly rebounded. On Wednesday last week, the shares closed 2.65% lower for the day and have climbed over 4% since. 

All eyes are now on the company’s next update, scheduled for the 19th of February. 

What’s ahead for Wesfarmers in 2026?

Wesfarmers’ growth plans for 2026 centre on strengthening its core retail businesses while improving efficiency. It’s clear from this month’s news that management is willing to exit from a business that doesn’t fit the group’s long-term plans.

Wesfarmers is moving away from weaker assets and instead plans to allocate more capital to opportunities with the potential for higher returns.

The business also plans to continue improving its stores and product ranges across its key divisions, including Bunnings, Kmart and Officeworks.

Is the Wesfarmers share price a buy, hold or sell this year?

TradingView data shows that analysts aren’t too optimistic about whether Wesfarmers can deliver this year, though.

Out of 15 analysts, 7 have a sell or strong sell rating on Wesfarmers shares, and another 6 have a hold rating.

The average target price is $81.64, implying a 3.71% downside over the next 12 months at the time of writing. However, some analysts think the shares could fall another 24.96% to $63.60 over the next 12 months, and others are much more optimistic and expect the Wesfarmers share price to jump 18.01% to $100 per share.

The post Wesfarmers share price down 11% from its peak: Buy, hold or sell for 2026? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.