Walmart's International Business Shows Strength: Momentum Ahead?

Walmart Inc.’s WMT international business remained a key contributor to overall performance in the fourth quarter of fiscal 2026, supported by steady sales growth across major markets and continued digital expansion. The segment delivered broad-based momentum, reflecting stronger transaction activity, category performance and rising e-commerce adoption across geographies.

During the quarter, Walmart’s International segment generated net sales of $34.6 billion on a constant currency basis, marking a 7.5% increase from the prior-year period. Sales growth was driven by key markets including China, Walmex and Flipkart, with gains recorded across merchandise categories and supported by higher transaction counts and unit volumes.

Digital channels continued to play a meaningful role in the segment’s growth profile. International e-commerce sales rose 17% in the quarter, largely driven by store-fulfilled pickup and delivery. Online channels accounted for about 28% of international net sales on a constant currency basis, reflecting a continued shift toward digital engagement across markets.

Profitability also improved alongside sales growth. Operating income for Walmart’s International segment increased 36% year over year to $1.9 billion. On an adjusted constant currency basis, operating income rose 26.5%, supported by improved e-commerce economics, business mix changes and the absence of certain strategic investments made in the prior year.

Overall, Walmart International exited the quarter with solid underlying momentum. Broad-based sales growth, higher digital penetration and improved operating leverage indicate that the segment is entering the new fiscal year on a stronger footing.

What the Latest Metrics Say About Walmart

Walmart, which competes with Costco Wholesale Corporation COST and Target Corporation TGT, has seen its shares rally 44.7% in the past year compared with the industry’s growth of 42.8%. Shares of Costco and Target have gained 10% and 11%, respectively, in the aforementioned period.

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From a valuation standpoint, Walmart's forward 12-month price-to-earnings ratio stands at 43.15, higher than the industry’s 39.4. The company is trading at a premium to Target (with a forward 12-month P/E ratio of 14.5) while trading at a discount to Costco (47.22).

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The Zacks Consensus Estimate for Walmart’s current fiscal-year sales and earnings per share implies year-over-year growth of 4.7% 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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This article originally published on Zacks Investment Research (zacks.com).

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