Observed Signal · Aug 20, 2026 · Earnings Report · Source: Adweek · Impact: 4/5 · Sentiment: Positive
Walmart Raises Guidance After 38% Ads Growth
Walmart reported a strong quarter driven by advertising and ecommerce, with global ad revenue up 38% and U.S. Walmart Connect growth of 43% (excluding Vizio). Total revenue was $187.9 billion, a 5.9% year-over-year increase, and adjusted EPS beat estimates. The company raised its full-year adjusted EPS guidance to $2.80–$2.87. Walmart recently closed its acquisition of CTV platform Vibe.co and plans to fold it into Walmart Connect to extend first-party commerce data and measurement into streaming; the retailer also owns Vizio from a 2024 deal. Walmart is scaling AI capabilities through its Sparky shopping agent (users up 70% year-over-year; Sparky users spend 40% more per order). Leadership cited tariff refunds and regulatory headwinds but emphasized the strategic value of integrating shopping, media, and streaming.
Walmart's strong ad revenue growth, raised earnings guidance, and CTV acquisitions (Vibe.co and prior Vizio deal) signal accelerating retail-media scale and expanded first-party commerce data into streaming — a meaningful competitive development for AdTech and media buyers.
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Key Takeaways & Evidence Grounding
- Global ad revenue grew 38% during the second quarter.
- U.S. growth of Walmart Connect was 43% during the period, excluding Vizio.
- Total revenue was $187.9 billion, a 5.9% year-over-year increase.
- Walmart closed its acquisition of self-serve CTV platform Vibe.co earlier in the month.
- Walmart raised its full-year adjusted earnings-per-share guidance to $2.80–$2.87 from $2.75–$2.85.
Connected Companies & Entities
5 Entities mapped“The company raised its guidance on sales and earnings Thursday, after reporting a booming ecommerce business, high profit growth, and tailwi...”
“The deal, reportedly valued at $1.4 billion, combined with Walmart’s 2024 takeover of Vizio, is expected to make the retailer a more formida...”
“Walmart closed its acquisition of self-serve connected TV (CTV) platform Vibe.co earlier this month.”
“The deal ... is expected to make the retailer a more formidable rival in TV streaming against Amazon (whose ads business raked in $76 billio...”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Walmart's Ad Revenue Soars to $6.4 Billion in 2025
Walmart reported $6.4 billion in advertising revenue for 2025, driven by its Walmart Connect business and associated assets including VIZIO. The figure represents a 37% global increase and a 41% domestic increase for Walmart Connect. Company executives said advertising and membership fees contributed materially to recent quarterly profit, and highlighted ecommerce investments — including a growing third-party marketplace and rapid delivery options — as accelerants for ad monetization. Walmart noted strong ad growth but warned of softer consumer signals among lower-income shoppers and investor concerns about ecommerce cannibalizing higher-margin in-store sales. Walmart also disclosed usage signals for its agentic shopper assistant, Sparky, noting higher order values among users.
Walmart's Ad Revenue Soars 46% to Nearly $6.4B
Walmart reported that its global advertising business generated nearly $6.4 billion in 2025, a 46% year-over-year increase that includes Vizio inventory. The company posted $713.2 billion in total revenue for 2025 (up 5.1% adjusted for inflation) and $190.7 billion in Q4 revenue (up 4.9% adjusted). Walmart Connect in the U.S. grew 41% in Q4, though ad growth slowed to 37% in Q4 from 53% in Q3. Additional operational highlights: ecommerce net sales rose 24% in Q4 (23% of total net sales), operating income grew 10.5% in Q4 (inflation-adjusted), and “fast delivery” volumes increased 60% year-over-year. The results underscore continued expansion of Walmart’s retail-media and commerce-driven advertising business.
Walmart Raises Guidance After Strong Q2 FY27
Walmart reported a strong second quarter of fiscal 2027, driven by robust e-commerce growth, expanding advertising revenue and higher membership income, and raised its full-year outlook. Quarterly revenue increased to $187.9 billion (up 5.9% year-over-year; +5.1% constant currency), global e-commerce rose 23%, and advertising revenue grew 38% company-wide. Operating income improved 28.8% to $9.4 billion and adjusted EPS was $0.81. The company now expects full-year constant-currency revenue growth of 4–5% and adjusted operating income growth of 7–8.5%, and provided Q3 revenue and adjusted EPS guidance. Management plans continued investments in prices and customer experience to support competitive positioning.
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