Does Walmart's International Strength Signal Growth Ahead?

Walmart Inc.’s WMT second-quarter fiscal 2026 results highlighted the growing importance of its international business, which delivered strong sales growth and continued to solidify the company’s overall performance. 

On a constant currency (cc) basis, international net sales rose 10.5%, led by strength in China, Walmex and Flipkart. These markets not only provided a top-line lift but also demonstrated how Walmart’s global operations are becoming an increasingly vital growth engine. Segment e-commerce sales advanced 22%, driven by store-fulfilled pickup & delivery and marketplace.

China remains a standout, with sales climbing 30% in the quarter. More than half of Walmart’s sales in the market are initiated online, supported by 455 cloud stores that allow the company to reach customers within an hour. This rapid delivery model has given Walmart an edge in meeting rising consumer expectations for convenience. In India, momentum is being driven by quick-commerce capabilities through Flipkart and Myntra.

Mexico and Canada also contributed meaningfully, with Walmart expanding its e-commerce platforms to create more unified shopping experiences across first-party and third-party sellers. Walmex saw comparable sales rise 4.4%, backed by double-digit e-commerce growth and festive event strength.

Despite the solid top-line gains, profitability in the international segment faced some pressure. The segment’s operating income declined 2.8% on a cc basis, reflecting investments in wages, technology and quick commerce infrastructure. These costs highlight Walmart’s strategy of prioritizing long-term capability building over near-term margin expansion.

Final Words on WMT

Walmart’s international markets are becoming central to its growth story. With strong performance across China, India, Mexico and Canada, the Zacks Rank #3 (Hold) company is proving that its global operations can not only deliver sales momentum but also lay the groundwork for sustainable growth in the years ahead.
 

Shares of WMT have rallied 27.8% in the past year compared with the industry’s growth of 27.1%.

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This article originally published on Zacks Investment Research (zacks.com).

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