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Walmart International's Sales Gain Momentum: Can the Growth Continue?

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Key Takeaways

  • Walmart International net sales rose 18% to $35.1B on higher transactions and unit volumes.
  • Walmart e-commerce sales climbed 27%, reaching 29% of International net sales constant-currency.
  • China, Flipkart and faster fulfillment helped, with 65% of e-commerce units same or next day.

Walmart Inc. (WMT - Free Report) continues to build momentum in its international business through a combination of stronger store performance, expanding digital capabilities and growing customer engagement across key markets. The company’s first-quarter fiscal 2027 results highlighted broad-based strength across Walmart International, reinforcing the role of the segment as an increasingly important growth driver.

International net sales increased 18% year over year to $35.1 billion. Excluding currency impacts, net sales rose 10.1% to $32.8 billion, supported by higher transaction counts and unit volumes across all categories. Growth was generated through both physical stores and digital channels, reflecting continued progress in Walmart’s omnichannel strategy across international markets.

A key contributor was e-commerce, with sales climbing 27% during the quarter. Store-fulfilled pickup and delivery services, along with marketplace expansion, remained major growth drivers. Digital penetration continued to improve across markets, with e-commerce accounting for roughly 29% of International net sales on a constant-currency basis, up about 340 basis points from the year-ago period.

China and Flipkart stood out during the quarter. China benefited from strong festive demand, including double-digit growth during the Lunar New Year period, while Flipkart continued to contribute meaningfully to segment growth. Faster fulfillment capabilities also supported performance. Walmart International delivered approximately 65% of total e-commerce units through same-day or next-day service, with about half of those orders reaching customers in less than one hour.

The quarter indicates that Walmart International’s growth is becoming increasingly diversified. Higher transaction volumes, rising digital penetration, marketplace expansion and faster delivery capabilities are working together to strengthen customer engagement and support sustained sales momentum across the segment.

What Do the Latest Metrics Say About Walmart?

Walmart, which competes with Costco Wholesale Corporation (COST - Free Report) and Target Corporation (TGT - Free Report) , has seen its shares rally 19.7% over the past year compared with the industry’s 16.8% growth. Shares of Costco have dipped 5.3%, while Target has gained 35.4% in the aforementioned period.

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From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 38.61, higher than the industry’s 35.03. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 15.27) while trading at a discount to Costco (43.14). 

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Walmart’s current fiscal-year sales and earnings per share implies year-over-year growth of 5.1% and 9.5%, 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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