- Walmart's international sales grew nearly 8% in constant currency in Q2 fiscal 2027
- China led international growth with a 9.7% increase, followed by gains in India
- Global advertising revenue rose 38%, driven by Walmart Connect and Flipkart Ads
Walmart Inc's international business emerged as a key growth driver in the second quarter of fiscal 2027, with sales rising nearly 8% in constant currency, led by China and India, the retail giant said on its earnings call on August 20.
China posted growth of 9.7%, the strongest among Walmart's international markets, while India contributed through both retail and digital advertising. Chief financial officer John David Rainey said International, along with Sam's Club US, was accretive to enterprise sales growth during the quarter.
Global advertising revenue rose 38%, driven by strong performances from Walmart Connect in the US and Flipkart Ads in India. Walmart US advertising, including VIZIO, also grew 38%, with Walmart Connect up 43%.
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Chief executive officer John Furner said the company was increasingly building capabilities once and scaling them globally, rather than developing them market by market. "That makes us faster and more efficient and allows customers in more markets to benefit from innovations developed anywhere across Walmart," he said.
Walmart is relying on India and China for its growth momentum.
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The company also expanded its Marketplace platform into Mexico and Canada during the quarter and launched Walmart+ in Canada, extending capabilities first built in the US.
eCommerce growth in the International segment came in at 19%, led by China, India and Canada. Sam's Club China hit record member counts during the quarter, while membership income grew nearly 17% globally.
Looking ahead, Rainey flagged that the timing of Flipkart's Big Billion Days event would affect the cadence of sales growth in the second half. Walmart expects a headwind of over 100 basis points to Q3 sales growth as it laps last year's event, with a similar benefit expected in Q4 this year.
Walmart raised its full-year sales guidance to 4-5% from 3.5-4.5% previously, and lifted its operating income growth guidance to 7-8.5% from 6-8%.
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