Skyrocketing Walmart Advertising Income by 46% Amidst Economic Struggles

Walmart Reports Record Q2 FY26 Earnings with Significant Advertising Revenue Growth

In a remarkable quarter, Walmart, the world's largest retailer, announced a 46% surge in global advertising revenue for Q2 FY26, totaling $178.9 billion in constant currency terms. This growth is attributed to the success of Walmart Connect, the company's advertising platform, and the recent acquisition of Smart TV manufacturer VIZIO.

The Walmart Connect platform, launched in 2021, offers digital retail ads, data integrations, and DOOH (Digital Out-of-Home) screens. The platform grew by 31% excluding VIZIO contributions, demonstrating its potential as a significant player in the advertising industry.

The inclusion of VIZIO pushed total advertising growth to nearly 50%. Roku, another major player in the streaming market, also reported a 46% increase in its global advertising revenue in Q2 FY26, following its acquisition of VIZIO.

Walmart's eCommerce sales also saw a significant boost, with a 25% jump globally during the quarter. In the U.S., Walmart's operations posted comparable sales growth of 4.6%.

International operations, including strong performances in China, Mexico, and India through Flipkart operations, contributed $32.7 billion in net sales, marking 10.5% growth in constant currency terms.

However, the retail giant faced some challenges. Walmart accrued an additional $450 million beyond planned expenses during Q2 due to elevated general liability claims, first reported in Q2 2025. The company also expects total incremental claims costs to reach $730 million for the first half of fiscal 2026.

In a move to address market competition, Walmart expanded its marketplace to allow Amazon fulfillment for cross-platform sales under specific conditions, announced in July 2025. This move is seen as a response to the growing retail media landscape, as demonstrated by partnerships such as the one between Yahoo and Costco, reported in April 2025.

Despite these challenges, Walmart's Q2 FY26 earnings reflect a strong global presence and a commitment to innovation in the advertising and eCommerce sectors. The company continues to be a major player in the retail industry, with over 4,500 U.S. stores and a robust international presence.