From Bengaluru to Beijing: Flipkart and China Fuel Walmart’s Winning Quarter

Walmart International achieved strong first-quarter growth in FY26, with year-on-year sales increasing 7.8% to $32.1 billion in constant currency. The results were driven by strong growth in its Indian online retailing colossus Flipkart, alongside solid increases in China and Walmex division in Mexico and Central America.

E-commerce was the biggest growth driver, with overseas online sales rising 20%, driven by Flipkart's booming marketplace and store-fulfilled pickup and delivery programs. Flipkart also dominated Walmart International's advertisement business, which grew 20% during the quarter. Actually, Flipkart's ad revenue during the fiscal year ending March 2024 reached almost Rs 5,000 crore, surpassing its marketplace fee earnings.

Transaction volumes and unit values grew in international markets, indicating brisk consumer activity. Walmart leaders pointed to Flipkart's position as a driver of not only sales but also innovation, particularly in the quick commerce category, where fast delivery is increasingly becoming a differentiator in India's competitive market.

But the quarter wasn't smooth sailing. Walmart International's operating income fell 6.4% to $1.4 billion due to strategic growth investments in Flipkart, Walmex, and Canada. Currency also contributed to weighing on results, with sales and operating income hurt by $2.4 billion and $0.2 billion, respectively.

Internationally, Walmart's quarterly total revenue was $165.6 billion, up 2.5%, with e-commerce sales rising 22% globally. In spite of the decline in operating income, Walmart was optimistic about its global strategy and reaffirmed its guidance for the remainder of the fiscal year.

Walmart's controlling interest in Flipkart, now over 80%, continues to bear fruit as the Indian e-commerce market leader solidifies its position at the center of Walmart's global growth narrative.

Sources: Moneycontrol, Rediff, Economic Times, Inc42, The Week