Home Depot reported fiscal second-quarter results that exceeded Wall Street expectations on both revenue and earnings, while maintaining its full fiscal-year guidance amid broader economic uncertainty.
The company posted 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. Adjusted earnings per share reached $4.92. Revenue increased 5.7% to $47.86 billion. Comparable sales rose 1.7%, surpassing analyst expectations of 0.9% growth and marking the highest comparable sales figure since the fiscal third quarter of 2022.
CFO Richard McPhail characterized the operating environment as “frozen housing market conditions” while highlighting that the company was gaining market share and serving customers effectively. He noted broad engagement across both professional and do-it-yourself business segments, with customer engagement in the first half of the year meeting expectations. However, consumer hesitancy about undertaking larger projects persisted, with customers citing concerns about inflation, fuel costs, and general economic uncertainty despite indicating they had the financial means to spend.
The retailer reaffirmed rather than raised guidance due to continued market uncertainty. Home Depot’s fiscal 2026 guidance includes tariff refunds expected to partially offset unplanned costs in fuel, energy, and product inputs. During the second quarter, the company received $730 million in tariff refunds, representing the vast majority of anticipated refunds. The company deployed $685 million of those refunds to reduce cost of goods sold, with the remaining $45 million held in inventory. Full-year expectations include total sales growth between 2.5% and 4.5% and operating margins between 12.4% and 12.6%.
McPhail emphasized management’s focus on controlling operational elements within their influence and maintained that long-term conditions for home improvement demand remained favorable despite near-term headwinds from lower housing turnover and elevated mortgage rates.
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