Home Depot Inc. (NYSE:HD) reported stronger-than-expected second-quarter results before the opening bell on Tuesday, helping lift the home improvement retailer’s shares by around 1.7% in pre-market trading.
Adjusted earnings per share reached $4.92, beating the analyst consensus of $4.73 by $0.19. Revenue increased 5.7% year on year to $47.86 billion from $45.28 billion, also exceeding Wall Street expectations of $47.23 billion.
Comparable Sales Return to Growth
Comparable sales increased 1.7% during the second quarter, while comparable sales across Home Depot’s U.S. operations advanced 1.3%.
Net earnings rose to $4.8 billion, equivalent to $4.79 per diluted share, compared with $4.6 billion, or $4.58 per diluted share, in the corresponding period last year.
Management highlighted continued customer demand for smaller home improvement projects as an important contributor to the quarterly performance.
“Our second quarter results exceeded our expectations. We saw broad-based demand across the business as customers continued to engage in smaller projects,” said Richard McPhail, Executive Vice President and Chief Financial Officer.
Home Depot Reaffirms Fiscal 2026 Outlook
Following the better-than-anticipated quarter, Home Depot maintained its existing fiscal 2026 guidance.
The company continues to expect adjusted diluted earnings per share growth of between flat and 4.0% compared with the $14.69 recorded in fiscal 2025. That implies adjusted EPS of approximately $14.69 to $15.28, with a midpoint of around $14.99.
Home Depot also continues to forecast total sales growth of approximately 2.5% to 4.5% for the year, alongside comparable sales ranging from flat to growth of 2.0%.
Tariff Refunds Expected to Offset Some Cost Pressures
Home Depot’s fiscal 2026 outlook incorporates anticipated IEEPA tariff refunds, which the company expects will partially compensate for unexpected increases in fuel, energy and other product input costs during the year.
The retailer plans to open approximately 15 new stores during fiscal 2026 as it continues expanding its physical footprint.
Home Depot is forecasting a gross margin of approximately 33.1%, while its adjusted operating margin is expected to come in between approximately 12.8% and 13.0%.
The combination of an earnings beat, stronger-than-forecast revenue and unchanged full-year guidance provided support for Home Depot (NYSE:HD) shares ahead of Tuesday’s regular trading session.
Home Depot stock price
