Home Depot (HD) Earnings Date & Reports

Key Takeaways

• Home Depot reported second-quarter fiscal 2026 revenue of $47.86 billion, up 5.7% year over year and above the consensus estimate of about $47.23 billion.
• Adjusted earnings per share (EPS) came in at $4.92, beating the $4.73 consensus and rising from $4.68 in the prior-year quarter.
• Comparable sales increased 1.7% overall and 1.3% in the U.S., supported by a 2.8% gain in average ticket, while comparable transactions declined 1%.
• Online comparable sales climbed 11%, marking the fifth consecutive quarter of double-digit digital growth.
• Gross margin expanded to 33.7%, helped by tariff refunds, while operating margin slipped to 14.3% from 14.5%.
• The company reaffirmed its full-year fiscal 2026 outlook, including comparable sales growth of flat to 2%.

Earnings Context and Why It Matters

Home Depot's quarterly earnings provide one of the clearest readouts on U.S. consumer spending for home improvement. With housing turnover near historic lows and affordability still strained, investors watch the retailer closely for signs of whether demand is stabilizing, shifting toward smaller projects, or deferring big-ticket renovations. This report also carries added weight because management held its full-year guidance even after posting a top-and-bottom-line beat, a signal that the company sees gradual improvement rather than a sharp housing-led rebound. The margin picture matters too, since tariff refunds and cost pressures are influencing reported profitability.

Reported Results

For the second quarter of fiscal 2026, which ended August 2, 2026, Home Depot reported net sales of $47.86 billion, a 5.7% increase from $45.28 billion a year earlier. Net earnings rose 4.7% to $4.77 billion, or $4.79 per diluted share, compared with $4.58 per diluted share in the prior-year period. Adjusted diluted EPS, which excludes certain items, was $4.92, above the $4.73 consensus estimate.

Comparable sales increased 1.7% company-wide and 1.3% in the U.S. The gain was driven by a 2.8% increase in comparable average ticket, partially offset by a 1% decline in comparable transactions. Strength was broad-based: 13 of 16 merchandising departments posted positive comparable sales, and big-ticket transactions over $1,000 rose 2.4%. Online comparable sales grew 11%.

Gross margin expanded about 25 basis points to 33.7%, reflecting roughly $685 million of tariff refunds under the International Emergency Economic Powers Act (IEEPA, a U.S. law governing certain trade-related emergency measures) that reduced cost of goods sold. Those refunds were partly offset by higher fuel, energy, and product input costs, as well as mix pressure from the GMS acquisition. Operating margin was 14.3%, down from 14.5% a year earlier, while adjusted operating margin was 14.7%.

Management reaffirmed fiscal 2026 guidance, including total sales growth of approximately 2.5% to 4.5%, comparable sales growth of flat to 2%, and adjusted diluted EPS growth of flat to 4%.

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Market Reaction and Investor Sentiment

Home Depot shares were little changed shortly after the open on August 18, 2026, even as the company beat both revenue and adjusted EPS estimates. The stock closed the prior session at $337.88 and traded modestly higher in premarket action. Heading into the report, the stock was down about 1.8% year to date, lagging the broader market.

The muted initial reaction reflects a balanced investor interpretation: the broad-based sales improvement and better-than-expected comparable sales were welcomed, but the reaffirmed full-year guidance and the one-time nature of the tariff refunds kept enthusiasm in check. Analysts generally framed the print as a step in the right direction, with sales momentum the key takeaway, while noting that housing-related headwinds have not fully cleared.

Forward Outlook and Key Factors to Monitor

The biggest factor to watch remains the housing market. Management noted that housing turnover is still near historically low levels, which continues to weigh on larger discretionary projects. Any meaningful move in mortgage rates or housing activity could shift demand from smaller repair and maintenance projects toward bigger renovations, which tend to carry higher tickets and stronger margin potential.

Margins are another area of focus. The tariff refunds boosted second-quarter gross margin but are expected to be fully offset by unplanned fuel, energy, and product input costs over the full year. Investors will be watching whether cost pressures moderate in the second half and whether gross margin can hold up as the refund benefit fades, particularly in the fourth quarter.

Operationally, the professional contractor, or Pro, segment remains a central growth priority, supported by the SRS and GMS distribution businesses. Digital execution also remains important after another quarter of double-digit online comparable sales growth. Finally, investors will monitor leadership stability after the company announced that CEO Ted Decker is on temporary medical leave and is expected to return within a few months.

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