Walmart's E-Commerce Surge Defies Retail Slump

Walmart's digital transformation is in full swing, with the retail giant's e-commerce operations emerging as a clear standout in its fiscal second-quarter results. In the quarter ended July 31, 2025, Walmart's global e-commerce sales surged 25% year-over-year, more than five times the 4.8% overall sales growth rate.

The strength was broad-based across countries and formats. In the United States, both Walmart and Sam's Club e-commerce operations posted 26% year-over-year growth. Internationally, e-commerce grew 22%, with particularly strong performance in China, where more than half of total sales now originate online.

Perhaps more significant than the growth rate itself is the transformation in e-commerce economics. In Q2 2025, Walmart reached a major milestone, achieving profitability in its e-commerce operations both in the U.S. and globally. The path to profitability has been driven by several factors, including the growth of delivery from store and the company's advertising business, which exploded 46% year-over-year globally.

As Walmart prepares to report its third-quarter earnings on October 20, 2025, investors will be closely watching to see whether this momentum can persist amid mounting cost pressures and an increasingly cautious consumer environment.