Walmart's International Sales Up 10.5%: China & Walmex Drive Gains

Walmart Inc.’s WMT International business was a standout performer in the second quarter of fiscal 2026, with sales climbing 10.5% year over year in constant currency to $32.7 billion. The robust growth was powered by double-digit gains in China and sustained momentum at Walmex and Flipkart. Together, these markets offset currency headwinds that shaved $1.5 billion off reported sales. 

China emerged as the quarter’s brightest spot, delivering a 30.1% increase in constant currency, as Sam’s Club and the broader omnichannel network capitalized on strong consumer demand. More than half of sales were digital, underscoring Walmart’s progress in integrating physical and online channels. 

Walmex posted 6.1% growth, benefiting from higher traffic and solid e-commerce adoption driven by pickup and delivery services. Festive sales and growth in Bodega and Sam’s Club contributed to the solid showing, while 25 new store openings added to the region’s scale.

Flipkart contributed with solid marketplace and advertising growth, extending Walmart’s digital ecosystem in India. International e-commerce sales advanced 22%, led by store-fulfilled pickup and delivery as well as marketplace. Meanwhile, membership income jumped 27%, contributing to 2.7% growth in membership and other income.

Operating income in constant currency slipped 2.8% as Walmart continued to invest in technology, wages, and growth priorities in India, Canada and Mexico. Nonetheless, the underlying sales momentum across international markets reinforced the segment’s growing role in driving Walmart’s global top line.

What the Latest Metrics Say About Walmart

Walmart, which competes with Costco Wholesale Corporation COST and Target Corporation TGT, has been a standout performer, with shares rallying 32% in the past year compared with the industry’s growth of 25.4%. Shares of Costco have advanced 6.6%, while Target declined 44% in the aforementioned period.
 

From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 37.93, higher than the industry’s 33.04. WMT carries a Value Score of C. Walmart is trading at a premium to Target (with a forward 12-month P/E ratio of 11.22) but at a discount to Costco (46.83). 
 

The Zacks Consensus Estimate for Walmart’s current financial-year sales and earnings per share implies year-over-year growth of 4% and 3.6%, respectively. 
 

Walmart currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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