Walmart Stock Dips Amid Mixed Earnings Report and Tariff Concerns

Walmart shares fell 4.9% as the broader market edged lower ahead of Federal Reserve Chair Jerome Powell's anticipated speech. The retail giant posted mixed second-quarter results, with revenue surpassing expectations at $177.4 billion but earnings per share missing estimates at $0.68 versus $0.74 consensus.

Tariffs continue to pressure margins, with CFO John David Rainey acknowledging the company has absorbed some costs while passing others to consumers. U.S. same-store sales grew 4.6% year-over-year, demonstrating organic growth beyond new store openings.

Despite earnings headwinds, Walmart maintains its position as a consumer staple and cash-flow generator. The market's reaction reflects near-term concerns over margin compression rather than structural weaknesses in the business model.