Walmart International delivered robust growth in Q2 fiscal 2027, with net sales rising nearly 8% in constant currency. China led international growth with a 9.7% increase, followed by gains in India, while e-commerce sales grew 19% across the segment. According to the latest earnings call, the advertising business within International operations grew 38%, with Flipkart Ads identified as a leading contributor alongside Walmart Connect in the US. Chief financial officer John David Rainey noted that International, along with Sam's Club US, was accretive to enterprise sales growth during the quarter. India remained a key growth driver for Walmart's International Business during the reported quarter, with the company's International business reporting double-digit growth of 7.9% to USD 33.7 billion in the second quarter of FY27.
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%. The company expanded its Marketplace platform into Mexico and Canada during the quarter and launched Walmart+ in Canada, extending capabilities first built in the US. Chief executive officer John Furner emphasized the company's strategy of building capabilities once and scaling them globally, making the organization faster and more efficient. The retailer also reported robust growth in its advertising business, with Flipkart Ads emerging as a major contributor to the 20% growth in the advertising segment during the quarter.
Walmart expects the timing shift of Flipkart's Big Billion Days sale between Q3 and Q4 to create a more than 100-basis-point headwind to Q3 sales growth. As reported by Business Standard, CFO John David Rainey stated: "For Q3 sales guidance, we expect a headwind of over 100bps to growth related to a timing shift of Flipkart's Big Billion Days between Q3 and Q4." The event is expected to start on September 23, 2026, with early access for Plus members on September 22, 2026 and run through October 2, 2026. Rainey noted that "this year, we expect a Q3 headwind of over 100 basis points in sales growth as we lap last year's event," while Q4 sales growth will benefit by a similar amount. The timing shift will "impact the cadence of Q3 and Q4 sales" growth, with overall Q3 sales growth expected between 3% and 3.75% for the enterprise.
Despite the expected Q3 impact from the Flipkart event timing, Walmart raised its fiscal 2027 outlook. According to CNBC TV18, the company now expects consolidated net sales to grow 4% to 5% in constant currency, compared with its earlier guidance of 3.5% to 4.5%. Adjusted operating income growth guidance was raised to 7% to 8.5% from 6% to 8%, while adjusted EPS guidance was increased to $2.80-$2.87 from $2.75-$2.85. Walmart said its operating income outlook reflects the continued prioritisation of tariff refunds received in Q2 towards customer experience and price investments in the second half.
Walmart US reported net sales of $125.2 billion, up 3.5% year-on-year. Comparable sales excluding fuel increased 2.6%, while transactions rose 1.5% and average ticket increased 1.1%. US e-commerce sales increased 24%, supported by store-fulfilled delivery, advertising and marketplace operations. According to CNBC TV18, US operating income rose 20.6% to $8.1 billion. The company noted that a 125-basis-point headwind to comparable sales came from pharmacy deflation related to new maximum fair price regulation effective January 1.
Shares of Walmart fell as much as 7.4% shortly after 4:30 pm IST (7 am New York) on Thursday following the quarterly results, according to Bloomberg. The stock had gained 2.6% so far in 2026 through Wednesday's close. According to CNBC TV18, John David Rainey, Walmart's executive vice president and chief financial officer, said: "Our business model is only getting stronger and more durable, and we're pleased to raise our guidance for the year."
