Walmart's global advertising business grew 38% year over year in the second quarter of fiscal 2027, with Walmart U.S. advertising, including VIZIO, also up 38%, led by a 43% rise in Walmart Connect, while international advertising advanced 20% on Flipkart Ads. The growth contributed to a 96-basis-point expansion in gross profit rate to 25.4%, and adjusted operating income rose 17.4% in constant currency, though tariff refunds provided a significant benefit. Walmart is expanding its advertising reach through the acquisition of Vibe, which adds self-service tools for small and medium advertisers, but integration costs are expected to create an approximately 20-basis-point headwind to fiscal 2027 operating income growth. The company's shares have gained 4.8% over the past year, compared with the industry's 3.5%, and its forward price-to-earnings ratio stands at 34.75, above the industry's 31.79 but below Costco's 44.77. The Zacks Consensus Estimate for current fiscal-year sales and earnings per share implies year-over-year growth of 5.3% and 8.7%, respectively.
Walmart Inc.Walmart's advertising business grew 38%, driving gross margin expansion and operating income growth.
Costco Wholesale Corp
Target CorporationFlipkart Ads contributed to international advertising growth of 20%.
