Walmart Connect Ad Revenue Surges 44%, Now a Third of Operating Income
WMT sits 21% above its 52-week low of $95.42.
Summary
Walmart's advertising arm, Walmart Connect, grew 44% in the quarter ended April 30 — its fastest pace since reporting began — and now contributes a third of operating income with roughly 70% gross margins. That's offsetting slowing same-store sales growth, which fell to 4.1% and is projected to dip below 4% for the first time since early 2024 when Walmart reports Thursday. The company is testing ads in its AI shopping assistant Sparky, whose active users more than doubled, and expanding into streaming TV via the Vizio acquisition. Connect impressions rose 17% in Q2 versus Amazon's 9%, signaling share gains in retail media. This follows Walmart's Q1 report in May, where management maintained full-year guidance despite consumer pressure; the ad business is now the key profit driver investors are watching ahead of Thursday's earnings.
At the time of this announcement, WMT was trading at $115.58 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $909.8B. The 52-week trading range was $95.42 to $135.16. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.