US retail giant Walmart has reported that its international business saw a significant 7.8 percent growth in net sales during the first quarter of fiscal year 2026, primarily driven by strong performances from its Indian e-commerce arm Flipkart, the China market, and Walmex (Walmart’s Mexico and Central America division).
According to the company’s earnings statement, the growth in Walmart International’s sales on a constant currency basis was also supported by increased transaction counts and higher unit volumes. The international segment’s e-commerce sales witnessed a substantial 20 percent jump, with Flipkart playing a leading role in this expansion, along with store-fulfilled pickup and delivery services, and the marketplace.
Walmart International, which operates across 18 countries outside the US, also saw its advertising business grow by 20 percent, again led by Flipkart. The international segment’s net sales reached $29.8 billion in the reported quarter.
However, Walmart’s operating income for its international operations, on a constant currency basis, saw a decline of 6.4 percent to $1.4 billion. The company attributed this to strategic growth investments in Flipkart, Walmex, and Canada. Additionally, currency rate fluctuations negatively impacted Walmart International’s sales by $2.4 billion and its operating income by $0.2 billion.
Globally, Walmart’s total revenue for the first quarter reached $165.6 billion, marking a 2.5 percent increase. The company’s global e-commerce sales grew by 22 percent, driven by store-fulfilled pickup and delivery, as well as marketplace growth.
Walmart acquired a controlling 77 percent stake in Flipkart in 2018 for $16 billion and has since increased its shareholding to over 80 percent in the Bengaluru-headquartered e-commerce major.
Key Highlights:
- Walmart International’s net sales grew by 7.8% in Q1 FY26, boosted by Flipkart and China.
- E-commerce sales for Walmart International surged by 20%, with Flipkart as a key driver.
- Flipkart’s advertising business also contributed to a 20% growth in the international segment’s advertising revenue.
- Despite strong sales, Walmart International’s operating income saw a decline due to strategic investments.