Home Depot Q2 2026 earnings: sales and profit top expectations
Home Depot's Q2 2026 sales and profit beat Wall Street estimates, powered by renovation demand and its contractor-focused Pro business.
| Q2 2026 | Reported | Expected | Surprise |
|---|---|---|---|
| EPS | $4.92 | $4.88 | +0.9% |
| Revenue | $47.86B | $48.69B | -1.7% |
Key takeaways
- Home Depot topped Wall Street’s forecasts on both sales and profit for the quarter, with revenue up 5.7% from a year earlier to $47.9 billion.
- Comparable sales (sales at stores and online channels open at least a year) rose 1.7% — the strongest reading since late 2022 — as homeowners locked into low mortgage rates chose to renovate rather than sell and move.
- Growth was concentrated in the professional contractor business: Home Depot’s SRS Distribution and GMS acquisitions, plus faster delivery and better in-stock availability, drove market-share gains even though the broader home-improvement market stayed soft.
- Management said cross-selling between Home Depot, SRS and GMS is on pace to add about $400 million in annual sales this year, with that figure expected to roughly double next year.
- The company received $730 million in tariff-related refunds during the quarter, but its finance chief said that benefit will be largely offset by higher fuel, energy and other costs by year-end.
- Home Depot reaffirmed its full-year outlook: total sales growth of about 2.5% to 4.5%, comparable sales ranging from flat to up 2%, and adjusted earnings per share anywhere from flat to up 4% versus fiscal 2025’s $14.69.
- Trailing-twelve-month margins stayed fairly steady (gross margin near 33%, operating margin near 12.5%), showing the company is still converting sales into profit at a consistent rate even as it absorbs acquisition and tariff-related costs.
- CEO Ted Decker is on a temporary medical leave; day-to-day operations are being overseen by EVP Ann-Marie Campbell while CFO Richard McPhail is also taking on leadership of financial management and the Pro business during his absence.
Q2 2026 in context
| Metric | Aug 2026 | Aug 2025 | Change |
|---|---|---|---|
| Revenue | $47.9B | $45.3B | +5.7% |
| Net income | $4.8B | $4.6B | +4.7% |
| Free cash flow | $4.5B | $3.7B | +21.0% |
| Diluted EPS | $4.79 | $4.58 | +4.6% |
| Gross margin | 33.7% | 33.4% | +0.3 pts |
| Operating margin | 14.3% | 14.5% | -0.2 pts |
| Net margin | 10.0% | 10.1% | -0.1 pts |
Figures for the quarter ended Aug 2026 and the quarter ended Aug 2025, as reported to the SEC.
How the stock took it
Home Depot Inc closed at $337.88 on Aug 17, 2026, the last session before the report, and at $344.30 on Aug 19, 2026, the first session after it — +1.9% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 33.1% | Trailing 12 months |
| Operating margin | 12.4% | Trailing 12 months |
| Net profit margin | 8.4% | Trailing 12 months |
| Pretax margin | 11.1% | Trailing 12 months |
| EPS | $14.08 | Trailing 12 months |
| Revenue growth (YoY) | 2.2% | Trailing 12 months |
| EPS growth (YoY) | -4.5% | Trailing 12 months |
| Return on equity | 113.3% | Trailing 12 months |
Sources: company report · earnings call · reputable coverage