Walmart raises FY27 outlook as India, China and Flipkart Ads fuel international growth
Walmart’s international sales rose nearly 8% in constant currency in Q2 FY27, led by 9.7% growth in China and momentum in India. Global advertising revenue climbed 38%, with Flipkart Ads contributing, prompting higher full-year sales and operating-income guidance.
What happened
Walmart said India supported international growth through retail and Flipkart Ads, which helped lift global advertising revenue 38%. The company flagged Big
Key facts
- International sales rose nearly 8% in constant currency in Q2 fiscal 2027
- China growth was 9.7%
- Global advertising revenue grew 38%
- Walmart US advertising grew 38%
- Walmart Connect grew 43%
- International e-commerce grew 19%
- Global membership income grew nearly 17%
- Flipkart Big Billion Days timing is expected to create a Q3 sales-growth headwind of over 100 basis points
- Full-year sales growth guidance raised to 4-5% from 3.5-4.5%
- Full-year operating income growth guidance raised to 7-8.5% from 6-8%
Why this matters
Walmart’s results validate India and China as strategic growth platforms and make marketplace, retail-media and local digital-commerce capabilities especially attractive partnership or acquisition targets.
What to watch
- India and China constant-currency sales growth versus the nearly 8% international baseline.
- Flipkart Ads growth, ad revenue as a share of GMV, advertiser retention and evidence of incremental operating-margin contribution.
- Q3 sales deceleration and the size of the expected Q4 Big Billion Days rebound.
- International operating-income growth relative to sales growth, including fulfillment, promotional and local sourcing costs.
- India marketplace regulatory developments, foreign-investment restrictions and competitive actions from Amazon, Reliance and Meesho.
- China traffic, comparable-sales trends and price competition from domestic omnichannel and value retailers.
- FX movements affecting reported international revenue and guidance conversion.
- Increase investment in Flipkart seller tools, ad formats, measurement and closed-loop attribution to raise ad yield without materially increasing consumer acquisition costs.
- Use India marketplace data to deepen Walmart Connect-style retail media offerings across international banners and expand third-party seller services.
- Prioritize supply-chain automation, local sourcing and fulfillment density in India and China to protect margins as order volumes and assortment breadth grow.
- Manage investor expectations around the Big Billion Days calendar effect by separating reported quarterly growth from underlying demand and profit trends.
- Deploy incremental international cash flow toward higher-return marketplace, advertising and omnichannel capabilities rather than broad-based price investment.