Flipkart Ads Drive Walmart’s Advertising Business Growth In Q2

Walmart's advertising business grew by 20% during Q2 FY27, fueled by Flipkart Ads, as reported in the company's earnings release. In the same period, Walmart's global advertising business expanded by 38%. The company's total sales for Q2 amounted to $35.2 Bn, a 12.8% increase compared to the previous year. On a constant currency basis, sales rose by 7.9% to $33.7 Bn.

Walmart's operating income grew by 28.8%, driven mainly by China and India. The e-commerce segment saw a 19% increase in sales during Q2 FY27, with store-fulfilled pickup and delivery, as well as a marketplace playing a key role. However, Walmart anticipates a slowdown in growth for Q3 due to the timing difference of Flipkart's Big Billion Days event between Q3 and Q4.

The company's CFO, John David Rainey, mentioned that this headwind will offset the tariff refunds received in Q2, which were utilized for customer experience improvements and price-related initiatives in the second half. Flipkart is now concentrating on growth beyond e-commerce and quick commerce. The company's group CEO, Kalyan Krishnamurthy, revealed that Flipkart will launch its food delivery service in the near future.

Additionally, Flipkart Minutes, its quick commerce segment, will launch premium grocery and specialty food products under the private label brand Pykd, with a pilot program set to begin in Bengaluru. Flipkart has postponed its IPO plans until at least the following year as it prioritizes profitability. The company's proposed $2-2.5 Bn pre-IPO funding round was delayed to focus on margin improvement efforts.