Home Depot reported fiscal second-quarter results that surpassed Wall Street expectations on both revenue and earnings while maintaining its full fiscal-year guidance. The company generated net income of $4.77 billion, or $4.79 per share, compared with $4.58 per share in the prior year period. Revenue increased 5.7% to $47.86 billion. Adjusted earnings per share reached $4.92 for the quarter.
Comparable sales rose 1.7%, beating analyst expectations of 0.9% growth and representing the highest comparable sales figure posted since the fiscal third quarter of 2022. The company attributed the performance to market share gains across both its professional and do-it-yourself customer segments. CFO Richard McPhail characterized the operating environment as consisting of “frozen housing market conditions” but emphasized that Home Depot was gaining share and improving customer service. Despite the positive quarter, management opted to reaffirm rather than raise full-year guidance due to broader market uncertainty.
Home Depot noted that customers remained hesitant to undertake larger renovation projects despite having the financial capacity to do so. Consumers cited concerns about inflation, fuel costs, and general economic uncertainty as factors influencing their spending decisions. However, McPhail indicated that the customer base remained in generally healthy financial condition and demonstrated broad engagement across product categories.
The company received $730 million in tariff refunds during the second quarter, which McPhail characterized as representing the vast majority of anticipated refunds for the year. Home Depot deployed $685 million of these refunds to reduce the cost of goods sold, with the remaining $45 million held in inventory. Management indicated that the tariff refunds would help offset unplanned expenses related to fuel, energy, and other product input costs while maintaining customer value.
Home Depot reaffirmed its fiscal 2026 guidance for total sales growth between 2.5% and 4.5% and operating margin between 12.4% and 12.6%. The company noted that CEO Ted Decker is taking a temporary medical leave of absence for several months, with operational responsibilities being distributed among other senior executives during his absence.
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