Walmart’s eCommerce and Advertising Growth Outpaces Expectations: Global Online Sales Jump 26% and Ad Revenue Soars 37%

eCommerce Sales Surge 26% Globally, Leading Revenue Expansion

Walmart’s latest earnings release spotlights the company’s robust response to the changing retail environment, marked by a 26% surge in global eCommerce sales. Store-fulfilled pickup, delivery operations, and an expanding online marketplace helped drive first-quarter revenue to $177.8 billion—up 7.3% year-over-year, or 5.9% in constant currency (cc).

Digital transformation continues to underpin Walmart’s growth. With online sales consistently outperforming broader retail trends, Walmart’s omnichannel strategy appears to be resonating with consumers who demand convenience and choice.

Advertising Revenue Growth Hits 37%, Signals New Strength in Digital Ecosystem

Notably, Walmart’s global advertising business leapt 37%, powered by a 36% increase in Walmart U.S. advertising alone. This rapid growth in digital ad revenue highlights the increasing value brands see in Walmart’s online and in-store ecosystem—offering access to millions of engaged shoppers. Membership fee revenue also climbed 17.4% globally, underscoring continued customer loyalty and willingness to pay for premium services.

Operating Income and Profitability Move Higher While Global Inventory Levels Rise

Operating income grew 5.0% (or 5.1% adjusted in constant currency), translating into a $0.4 billion increase for the quarter. Gross profit rate improved by 6 basis points, reaffirming efficiency gains, particularly in the core U.S. market.

Inventory levels rose 8.9% year-on-year, influenced by robust demand in grocery and fuel categories and timing of receipts. Return on assets (ROA) stood at 8.4% while return on investment (ROI) reached 14.9%, though both figures were modestly impacted by discrete items.

Guidance Maintained for Q2 and FY27, Signaling Confidence in Ongoing Momentum

Walmart issued guidance for the next quarter and reaffirmed its FY27 outlook, reflecting management’s confidence that continued strength in digital sales, advertising, and core operations will sustain performance. The company also raised $4.25 billion in long-term debt this quarter at favorable rates, bolstering its balance sheet and providing flexibility for strategic initiatives.

Key Takeaways: Digital Channels and Advertising Drive Growth, While Inventory and Membership Expand

For investors and analysts, the most striking takeaway is Walmart’s accelerating digital transformation. The 26% global eCommerce growth and 37% surge in advertising revenue highlight the company’s ability to monetize its vast audience and adapt to consumer behaviors. The continued growth in paid memberships also points to deeper customer engagement.

As Walmart heads into Q2 with firm guidance and a reinforced financial position, all eyes will be on whether its digital channels and advertising platforms can maintain momentum—especially as legacy retailers race to catch up. Investors may want to follow the May 21 investor webcast for deeper insights into strategy and execution.

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