Walmart reported significant growth in its global advertising business during the second quarter of fiscal 2027, driven primarily by Flipkart’s advertising vertical in India, highlighting the importance of ecommerce platforms in its international revenue strategy.
- Walmart global ad business grew 38% in Q2 FY27
- Flipkart Ads drove 20% growth in Walmart’s ad vertical
- Walmart International ecommerce sales up 19% led by India and China
What happened
In the second quarter of fiscal year 2027, Walmart's global advertising business experienced a 38% growth, primarily driven by Flipkart's advertising segment in India. The company highlighted that Flipkart Ads contributed a 20% increase during the quarter, marking a significant role for the Indian ecommerce giant within Walmart’s international advertising operations.
Alongside advertising growth, Walmart International’s net sales rose to $35.2 billion, an increase of 12.8% year-on-year, supported by a 19% rise in ecommerce sales. Key growth drivers included store-fulfilled pickup, delivery services, and marketplace expansion, especially in markets such as India and China. Operating income also increased notably by 28.8%, reflecting these strong regional performances.
Why it matters
The robust growth of Flipkart Ads underscores the increasing importance of ecommerce-based advertising platforms for global retailers like Walmart. As digital commerce expands rapidly in markets like India, advertising revenues generated through these platforms represent a valuable and scalable revenue stream beyond traditional retail sales.
Walmart’s performance in India also highlights the strategic priority placed on this fast-growing market. Continued investment in Flipkart’s ecommerce and related services signals Walmart’s commitment to strengthening its competitive position amid rising demand for omnichannel retail experiences and digital ad monetization.
What to watch next
Walmart has cautioned that Q3 growth could face a headwind due to a calendar shift of Flipkart’s flagship Big Billion Days sale, moving between third and fourth quarters. This timing adjustment could temporarily impact sequential sales growth, requiring close monitoring of quarterly results to assess the full-year impact.
Meanwhile, Flipkart’s strategic moves beyond core ecommerce, including the imminent launch of a food delivery service and expansion of its quick commerce grocery offerings, may open new avenues for growth and advertising opportunities. Additionally, Flipkart’s pause on IPO plans to focus on profitability efforts will be a key factor influencing investor sentiment and future capital strategies.