Walmart reported a rare earnings stumble for its fiscal second quarter, with adjusted profit of $0.68 a share missing Wall Street expectations of $0.74 and marking the retailer’s first miss in three years. Revenue rose 5% from a year earlier to $177.4 billion as US comparable sales gained 4.6%, but higher legal, insurance and restructuring expenses compressed operating margin to about 4% and eroded investor confidence, sending the stock down more than 4% in New York trading. Online momentum remained strong: global e-commerce sales jumped 25% and now account for roughly one-fifth of total revenue, seven times the level recorded seven years ago. Advertising sales through Walmart Connect grew 31%, while faster store-fulfilled deliveries and expanding marketplace services continued to attract higher-income shoppers even as grocery traffic held steady. Chief Executive Officer Doug McMillon said the impact of the United States’ 145% tariff on many imported goods has been “gradual,” but costs are rising weekly as post-tariff inventories arrive. The company absorbed part of the duties to keep average US shelf prices only about 1% higher than a year earlier, a strategy he warned would test margins through the second half. Despite the profit shortfall, management raised its full-year outlook, projecting net-sales growth of 3.75% to 4.75% and lifting adjusted earnings guidance to $2.52-$2.62 a share. The updated forecast underlines confidence that resilient consumer demand and higher-margin businesses such as retail media will offset mounting cost pressures from tariffs and settlements.