Home Depot reported fiscal second-quarter results that exceeded analyst expectations on both revenue and earnings, while maintaining its full-year financial guidance. The retailer generated net income of $4.77 billion, or $4.79 per share, compared with $4.55 billion, or $4.58 per share, in the prior year. Revenue increased 5.7% to $47.86 billion. Comparable sales rose 1.7%, outpacing analyst expectations of 0.9% growth and marking the strongest comparable sales performance since the third quarter of 2022.
Chief Financial Officer Richard McPhail attributed the results to continued investments in company strategy and broad engagement across the retailer’s merchandise categories, spanning both professional and consumer-focused segments. Despite the positive quarterly performance, McPhail characterized current market conditions as “frozen,” noting that while customers remain financially healthy and engaged with smaller purchases, they have hesitated to commit to larger renovation projects. Consumers cited concerns about inflation, fuel costs, and general economic uncertainty as reasons for deferring significant spending.
Home Depot received $730 million in tariff refunds during the quarter, representing substantially all refunds the company expects to receive. The retailer deployed $685 million of these refunds to reduce the cost of goods sold, while the remaining $45 million was retained in inventory. McPhail stated that the tariff refunds enable the company to “maintain value” amid cost pressures from fuel, energy, and other product input expenses.
For the full fiscal year 2026, Home Depot expects total sales growth between 2.5% and 4.5% and operating margins ranging from 12.4% to 12.6%. The company’s decision to reaffirm rather than raise guidance reflects the greater uncertainty in the broader housing market, driven by lower housing turnover and elevated mortgage rates. The retailer emphasized its efforts to attract professional customers, a segment considered largely insulated from macroeconomic pressures.
Home Depot also disclosed that CEO Ted Decker is taking temporary medical leave for several months, with senior leadership adjustments made to ensure continuity during his absence.
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