Home Depot reported second-quarter fiscal 2026 net sales of $47.86 billion, representing a 5.7% year-over-year increase. Consolidated comparable sales rose 1.7%, with domestic performance driven by a 1.3% increase in U.S. comparable sales. Net earnings reached $4.77 billion ($4.79 per diluted share), up from $4.55 billion ($4.58 per diluted share) in the prior-year period, while adjusted diluted EPS expanded 5.1% y-o-y to $4.92. Operating income was $6.84 billion on a 14.3% operating margin (12.8% to 13.0% adjusted), with gross profit reaching $16.12 billion (33.7% gross margin). Demand was underpinned by customer engagement in smaller projects and strength in professional (Pro) sales, reflected in a 2.8% growth in average ticket alongside a 1.0% decline in transaction volume.
Note: Home Depot FY'25 ended on February 1, 2026. Q2'26 refers to the quarter that ended on August 2, 2026.
The Home Depot reaffirmed its full-year guidance outlook, projecting total sales growth between 2.5% and 4.5% with comparable store sales expected to range from flat to up 2.0%. Management anticipates operating margins between 12.4% and 12.6% on an as-reported basis (12.8% to 13.0% on an adjusted basis), supported by an expected gross margin of approximately 33.1%.
Both reported and adjusted diluted earnings per share growth are projected to be flat to up 4.0% compared to fiscal 2025 (versus baseline EPS of $14.23 and adjusted EPS of $14.69, respectively). Additional full-year model assumptions include opening approximately 15 new stores and capital expenditures of roughly 2.5% of total sales.
Below are key drivers of Home Depot's value that present opportunities for upside or downside to the current Trefis price estimate:
For additional details, select a division from the interactive Trefis split for Home Depot at the top of the page.
Home Depot is the world's largest home improvement retailer, offering a broad selection of building materials, home improvement products, lawn and garden items, and building maintenance supplies to both DIY consumers and professional contractors across North America.
Home Depot's extensive physical store footprint combined with its dedicated ecosystem for professional contractors serves as the foundation of its enterprise value.
With over 2,300 retail stores across North America and localized distribution hubs, Home Depot offers proximity and inventory depth that digital-only retailers cannot match, driving high asset turn rates and cash flow generation.
Professional contractors generate a significant portion of total sales and spend at considerably higher volumes than individual DIY homeowners, creating sticky commercial relationships and resilient repeat demand.
While elevated interest rates constrain housing turnover, the median age of U.S. homes remains near historic highs above 40 years, sustaining baseline demand for non-discretionary repair and maintenance projects.
Home Depot is investing heavily in supply chain automation and flatbed distribution centers, enabling direct-to-job-site deliveries and seamlessly unifying physical stores with digital order fulfillment.
