Walmart online sales grew at more than five times the rate of total sales in its fiscal Q2 2026, which ended July 31, 2025.
Overall Walmart sales grew 4.8% in its fiscal Q2. CEO Doug McMillon attributed that growth to an increase in both transactions and units sold. Global Walmart revenue reached $177.4 billion in Q2, up from $169.3 billion the prior year. Additionally, Walmart grew its global advertising by 46% year over year and membership income by 15%.
Meanwhile, Walmart operating income decreased 8.2% year over year, to $7.3 billion from $7.9 billion.
On the retailer’s earnings call with investors, executives highlighted ecommerce as Walmart’s key growth driver. They also assessed why Walmart considers its tariff response to have been a success.
Walmart is No. 2 in the Top 2000. The database is Digital Commerce 360’s ranking of North America’s online retailers by their annual ecommerce sales.
Walmart is also No. 8 in the Global Online Marketplaces. That database ranks the top such marketplaces by third-party gross merchandise value (GMV).
How Walmart is addressing tariffs
McMillon said that with regard to “tariff-related cost pressures,” Walmart is keeping its prices “as low as we can for as long as we can.”
He said consumer behavior surrounding tariffs’ impacts has “been somewhat muted.” However, he expects tariffs’ impacts on pricing to change.
“As we replenish inventory at post-tariff price levels, we’ve continued to see our costs increase each week, which we expect will continue into the third and fourth quarters,” McMillon told investors on the retailer’s earnings call. “Not surprisingly, we see more adjustments in middle and lower-income households than we do with higher-income households. In discretionary categories where item prices have gone up, we see a corresponding moderation in units at the item level as customers switch to other items or, in some cases, categories.”
Chief financial officer John David Rainey said Walmart’s core business “is strong and growing with accelerating ecommerce momentum.”
He referred to a previous earnings call in which Walmart said it expects to gain market share during 2025’s tariff-led economic uncertainty.
“And that’s what’s happening,” he said. He added that Walmart is “navigating this dynamic operating backdrop very well. We said we would play offense to keep prices as low as we can for as long as we can, and that’s what we’re doing.”
Rainey noted that when Walmart last reported earnings, it was about three weeks into the “new tariff environment.”
“I would argue very strongly that we’ve navigated that very well, both in terms of managing the impact on our financial statements, but also minimizing the impact to our customers and members,” he added.
Walmart online sales in Q2
In Q2, global Walmart online sales grew 25% year over year.
Internationally, Walmart ecommerce sales grew 22% year over year. And in the U.S., Walmart and Sam’s Club ecommerce sales each grew 26% year over year in Q2. Sam’s Club CEO Christopher Nicholas said two-thirds of its sales growth came from ecommerce.
“Walmart U.S. ecommerce profitability continued to increase in Q2 as we make progress on improving net delivery costs and see strong momentum in advertising,” Rainey said.
He said ecommerce “was a big contributor” to Walmart’s revenue growth in Q2. He also cited consumers’ demand for “convenient and fast delivery, with order volumes increasing across our segments.”
At the same time, most of the retailer’s ecommerce profitability has been coming from Walmart and Sam’s Club in the U.S., he said. In addition, he noted that Walmart’s international ecommerce segment currently operates at a loss.
Half of Walmart’s incremental profit, excluding claims, was tied to advertising, membership and its online marketplace, Rainey said.
Kathryn McLay, CEO of Walmart International, noted that more than half of the company’s sales in China originated online in Q2. She also said Walmart now has more than 300 micro fulfillment centers in India. That allows the retailer to deliver items, at times, in less than 15 minutes, according to McLay.
“We’re beginning to position ourselves to be able to really take advantage of this growth into the quick commerce channel, but to do it efficiently by ensuring that our third-party inventory is placed closer to the consumer,” she said.
Omnichannel, fulfillment drive Walmart ecommerce growth in Q2
All fulfillment channels increased, he said, which store-based delivery led. That method increased 50% year over year, Rainey said.
“Speed of delivery is important to customers, and we’re continuing to get faster,” Rainey said. “Approximately one-third of deliveries from store in recent weeks were fast delivery in 3 hours or less, reinforcing the value of our store network and driving speed. And 20% of those deliveries arrived to our customers in 30 minutes or less.”
Similarly, store-fulfilled delivery grew 50% at Sam’s Club in Q2. At the same time, curbside pickup from Sam’s Club increased at a double-digit percentage, Rainey said without quantifying.
“Members are finding more ways to shop the club in an omni way and we’re pleased to see unit growth accelerating along with spend per member, frequency and renewals, all driving Sam’s Club U.S. results,” he said
He added that sales from Walmart’s online marketplace increased 17%, in part because more third-party sellers are using the retailer’s fulfillment services.
Rainey said about 44% of its marketplace volume goes through Walmart Fulfillment Services (WFS), the retailer’s logistics network. That’s 2.5% growth year over year.
How Walmart is using AI in 2025
McMillon highlighted Walmart’s “super agents,” which it expects to play key roles in its artificial intelligence capabilities.
AI agents refer to layers of software based on large language models (LLMs) that can make decisions and execute actions autonomously. Walmart chief technology officer Suresh Kumar previously said its super agents are at the center of its efforts to make tasks easier for customers, associates and partners.
It named Daniel Danker, former chief product officer at Instacart, as its new executive vice president of AI acceleration, product and design. The retailer is tasking him with tech prioritization and AI-related change management, McMillon told investors on the Q2 earnings call.
McMillon said he doesn’t think AI is lifting Walmart’s top-line sales yet.
“I think this is very early days,” he said. “But I am excited about the road map.”
Percentages may not align due to rounding. Check back for more earnings reports. See our previous article on Walmart online sales.
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