Home Depot Q2 Sales Rise 5.7% to $47.9B with Best Comp Growth Since 2022, Full-Year Guidance Reaffirmed

Home Depot reported second-quarter fiscal 2026 results that beat Wall Street expectations on both the top and bottom lines, as homeowners leaned into smaller spring maintenance projects despite a stalled housing market. Net sales rose 5.7% year over year to $47.86 billion, topping the consensus estimate of $47.27 billion. Adjusted diluted EPS came in at $4.92, beating the $4.73 estimate by $0.19 and rising 5.1% from a year ago.

Comparable sales increased 1.7%, well above the roughly 0.7%-1% analysts had forecast and the strongest comp growth since 2022, while U.S. comparable sales climbed 1.3% against an expected 0.9% gain. Net income reached $4.77 billion, up approximately 4.7% year over year. Outdoor categories including live goods, mulch, patio furniture, and grills were key demand drivers.

Customer transactions fell 1% while average ticket rose 2.8%, reflecting fewer but larger individual purchases. The company also noted that IEEPA tariff refunds reduced cost of goods sold by $685 million in the quarter. CFO Richard McPhail described conditions as a 'frozen housing market,' saying consumers have still not returned to big renovation projects, and attributed the decision to reaffirm rather than raise full-year guidance to continued macro uncertainty.

Home Depot maintained its fiscal 2026 outlook for total sales growth of 2.5% to 4.5%, comparable sales of flat to up 2%, and an operating margin of 12.4% to 12.6%. Separately, the company announced a nationwide rollout of an Express Delivery service for Pro and DIY customers, available for a flat fee with no subscription required. Shares gained modestly in early trading before giving up most of those gains as a broad market selloff, driven by surging Treasury yields and geopolitical concerns, weighed on equities.

Analysts at Oppenheimer and UBS called the results solid and described the full-year guidance as very reasonable given the macro backdrop.