Walmart International Advertising Business Grows 20 Percent
Walmart International’s advertising business grew 20percent year-on-year in the second quarter of fiscal 2027, driven primarily by strong performance from Flipkart Ads, as the US retail giant reported higher revenue and raised its full-year outlook.
Walmart reported consolidated revenue of $187.9 billion for Q2FY27, up 5.9percent from a year earlier. Global e-commerce sales increased 23percent, while operating income rose 28.8percent. Adjusted earnings per share stood at $0.81. Walmart US comparable sales increased 2.6percent, despite an 80-basis-point impact from health and wellness.
Walmart International recorded net sales of $35.2 billion, representing 12.8percent year-on-year growth. On a constant-currency basis, sales increased 7.9percent to $33.7 billion. E-commerce sales in the international segment rose 19percent, supported by store-fulfilled pickup and delivery, while digital penetration increased across markets.
The segment’s advertising business expanded 20percent, with Flipkart Ads identified as the leading contributor. Operating income rose 16.6percent to $1.4 billion, while constant-currency operating income increased 5.7percent to $1.3 billion, helped by lower e-commerce losses and changes in business mix.
However, Walmart expects a timing change for Flipkart’s Big Billion Days sale to weigh on third-quarter comparisons. The event has shifted between the third and fourth quarters this year, which is expected to reduce Q3 sales growth by more than 100 basis points.
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Walmart CFO John David Rainey said investors should assess the second and third quarters together to better understand the underlying growth rate, given the timing impact.
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For Q3FY27, Walmart expects consolidated net sales to rise 3percent to 3.75percent in constant currency, with operating income growth of 2percent to 4percent and adjusted EPS of $0.62-$0.64.
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Despite the expected Q3 headwind, Walmart raised its fiscal 2027 guidance. It now expects consolidated net sales growth of 4percent to 5percent in constant currency, compared with its earlier forecast of 3.5percent to 4.5percent. Adjusted operating income growth guidance was raised to 7percent to 8.5percent, while adjusted EPS guidance increased to $2.80-$2.87.