- Home Depot (NYSE:HD) reported second-quarter fiscal 2026 sales of US$47.9 billion, up 5.7 per cent, while comparable sales increased 1.7 per cent and U.S. comparable sales rose 1.3 per cent
- Net earnings climbed to US$4.8 billion, with diluted EPS increasing to US$4.79 and adjusted diluted EPS reaching US$4.92
- The company reaffirmed its fiscal 2026 outlook, projecting 2.5 per cent to 4.5 per cent sales growth, flat to 2.0 per cent comparable sales growth, and up to 4.0 per cent EPS growth for the year
- Home Depot stock (NYSE:HD) closed trading at US$337.77
The Home Depot (NYSE:HD) reported higher sales and earnings for the second quarter of fiscal 2026 and reaffirmed its full-year guidance, signalling continued confidence in its business despite ongoing cost pressures.
The world’s largest home improvement retailer reported second-quarter sales of US$47.9 billion, up 5.7 per cent from US$45.3 billion in the same period a year earlier. Comparable sales increased 1.7 per cent, while comparable sales in the United States rose 1.3 per cent, indicating modest growth in underlying demand across its core market.
Net earnings for the quarter totaled US$4.8 billion, compared with US$4.6 billion in the second quarter of fiscal 2025. Diluted earnings per share increased to US$4.79, up from US$4.58 a year earlier.
On an adjusted basis, diluted earnings per share reached US$4.92, compared with US$4.68 in the prior-year period.
The results suggest Home Depot continued to benefit from steady customer spending and operational execution, while navigating a retail environment shaped by inflationary pressures and shifting consumer demand.
This article is a journalistic opinion piece that has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
Fiscal 2026 guidance reaffirmed
Home Depot reaffirmed its fiscal 2026 outlook, maintaining expectations for moderate growth through the remainder of the year.
The company said its guidance includes refunds tied to tariffs under the International Emergency Economic Powers Act (IEEPA). Management expects those refunds to partially offset higher-than-anticipated costs related to fuel, energy and other product inputs throughout the fiscal year.
For fiscal 2026, Home Depot expects:
- Total sales growth of approximately 2.5 per cent to 4.5 per cent
- Comparable sales growth ranging from flat to 2.0 per cent
- Approximately 15 new store openings
- Gross margin of about 33.1 per cent
- Operating margin between 12.4 per cent and 12.6 per cent
- Adjusted operating margin between 12.8 per cent and 13.0 per cent
- Effective tax rate of approximately 24.3 per cent
- Net interest expense of approximately US$2.3 billion
- Diluted earnings per share growth of approximately 0 per cent to 4.0 per cent, based on fiscal 2025 EPS of US$14.23
- Adjusted diluted earnings per share growth of approximately 0 per cent to 4.0 per cent, based on adjusted fiscal 2025 EPS of US$14.69
- Capital expenditures of approximately 2.5 per cent of total sales
The reaffirmation suggests management remains comfortable with its financial outlook despite uncertainty surrounding input costs and broader macroeconomic conditions.
Expanding store footprint
At the end of the second quarter, Home Depot operated 2,364 retail stores and more than 1,340 SRS locations. The company’s network spans all 50 U.S. states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, all 10 Canadian provinces and Mexico.
The retailer has continued to expand its professional contractor and specialty distribution capabilities through SRS Distribution, strengthening its presence in roofing, landscaping and related professional markets.
How doers got more done
Despite leaving full-year guidance unchanged, these results exceeded not only analyst estimates, but company management’s expectations.
“We saw broad-based demand across the business as customers continued to engage in smaller projects,” Richard McPhail, the company’s executive vice president and chief financial officer, said in a news release.
Why is Home Depot stock lower? Further reading: Why some stocks go down when reporting higher revenue and profit.
Investor’s corner
Home Depot’s second-quarter results showed continued growth in sales, earnings and comparable-store performance, while adjusted earnings outpaced the prior year. The company also maintained its full-year financial targets, reflecting confidence in demand trends and its ability to manage cost pressures.
Investors will likely focus on the sustainability of comparable-sales growth, the impact of tariff-related refunds on profitability, and Home Depot’s ability to meet its earnings targets as it balances rising input costs with ongoing investment in store expansion and professional customer offerings.
Home Depot stock (NYSE:HD) closed trading around half a per cent higher at US$337.77 and has lost 1.84 per cent since the year began.
The Home Depot Inc. operates as a home improvement retailer in the United States and internationally. It sells various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products.
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