Walmart’s advertising revenue grew 20% year-on-year in Q2 FY27, primarily driven by Flipkart ads, according to the company’s earnings release. Overall, Walmart’s advertising business expanded 38% during the quarter, led by Walmart Connect in the US and Flipkart Ads in India. Walmart International recorded net sales of $35.2 billion, a 12.8% increase compared to the same quarter last year, with India and China contributing significantly to this growth, Medianama reported.
The growth in Walmart’s advertising revenue was supported by strong performance from Flipkart, Walmart’s horizontal e-commerce platform in India, alongside Myntra, its fashion e-commerce platform. Walmart International’s operating income reached $1.4 billion at the end of Q2 FY27, up 16.6% year-on-year, driven by lower losses in e-commerce and changes in business mix across markets. Walmart’s international e-commerce sales rose 19%, boosted by store-fulfilled pickup, delivery, and marketplace sales, Medianama detailed.
Flipkart and Myntra have also expanded into quick commerce with services like Flipkart Minutes and M-Now, enhancing their reach in India’s fast-growing e-commerce sector. Flipkart is further planning to enter the online food delivery market, signaling Walmart’s intent to diversify its offerings in India. This positions Walmart to capitalize on the rising demand for rapid delivery and integrated e-commerce services in one of its key international markets, Medianama noted.
Walmart’s next earnings update will provide further insights into the performance of its international operations, including Flipkart’s expansion into new verticals. The company’s strategic focus on quick commerce and advertising revenue growth in India continues to be a key driver of its international business results, as reflected in the Q2 FY27 financials released this week, Medianama confirmed.