Home Depot Inc
Q2 2026 Earnings
Market Reaction
Did HD Beat Earnings? Q2 2026 Results
Home Depot posted a solid second quarter of fiscal 2026, with net sales climbing 5.7% year-over-year to $47.86 billion and adjusted diluted EPS reaching $4.92, as broad-based customer demand for smaller home improvement projects helped sustain momentum despite a persistently soft housing market. The comparable average ticket rose 2.8% to $92.50, the clearest sign that customers kept spending even as comparable transactions dipped 1.0%, pointing to a trade-up dynamic in the basket rather than a volume story. Gross margin edged higher to 33.7% from 33.4% a year ago, though rising SG&A expenses, up 8.5% to $8.42 billion, partly reflecting ongoing integration of acquired businesses including SRS Distribution, tempered operating leverage. With analysts debating whether Home Depot or rival Lowe's held the near-term earnings edge heading into the print, the results offered a relatively clean answer. Management reaffirmed its fiscal 2026 outlook, projecting total sales growth of 2.5% to 4.5% and adjusted diluted EPS growth of flat to 4.0% from a base of $14.69, with tariff refunds expected to partially offset input cost pressures.
- Broad-based demand across the business as customers continued to engage in smaller projects
- Comparable sales growth of 1.7% overall and 1.3% in the U.S.
- Comparable average ticket increased 2.8% to $92.50
- Gross margin expansion to 33.7% from 33.4% year-over-year
- Investments across the business and associates' focus on customer service
Forward Guidance & Outlook
The Home Depot reaffirmed its fiscal 2026 guidance: total sales growth of approximately 2.5% to 4.5%, comparable sales growth of approximately flat to 2.0%, approximately 15 new stores, gross margin of approximately 33.1%, operating margin of approximately 12.4% to 12.6% (adjusted operating margin of approximately 12.8% to 13.0%), effective tax rate of approximately 24.3%, net interest expense of approximately $2.3 billion, diluted EPS growth of approximately flat to 4.0% from $14.23 in fiscal 2025, adjusted diluted EPS growth of approximately flat to 4.0% from $14.69 in fiscal 2025, and capital expenditures of approximately 2.5% of total sales. Guidance includes IEEPA tariff refunds expected to partially offset unplanned fuel, energy, and other product input costs throughout the fiscal year.
HD YoY Financials
Figures from SEC filings and company reports. Not investment advice.