TLDR
- Home Depot reported adjusted EPS of $4.92, beating the $4.73 estimate by $0.19
- Revenue came in at $47.86 billion, topping the consensus of $47.23 billion
- Sales rose 5.6% year-over-year, driven by demand for smaller renovation projects
- Home Depot reaffirmed fiscal 2026 guidance for sales growth of 2.5% to 4.5% and adjusted EPS of $14.69
- The stock pointed 1.5% higher at $340.80 ahead of Tuesday’s open
Home Depot (HD) stock climbed roughly 1.5% to $340.80 ahead of Tuesday’s open after the home-improvement retailer posted fiscal second-quarter results that topped analyst expectations.
Adjusted EPS came in at $4.92, beating the $4.73 consensus estimate. Revenue hit $47.86 billion, ahead of the $47.23 billion forecast, with sales rising 5.6% year-over-year.
CFO Richard McPhail pointed to broad demand across the business. “We saw broad based demand across the business as customers continued to engage in smaller projects,” he said.
Expectations heading into the print were low. The housing affordability crisis has slowed the number of Americans moving, which is typically the biggest trigger for major home-improvement spending.
HOME DEPOT $HD Q2’26 EARNINGS HIGHLIGHTS
🔹 Sales: $47.9B (Est. $47.27B) 🟢; +5.7% YoY
🔹 Adj. EPS: $4.92 (Est. $4.73) 🟢; +5.1% YoY
🔹 Comparable Sales: +1.7% (Est. +0.7%) 🟢
🔹 Net Income: $4.8B (Est. $4.72B) 🟢; +4% YoYAffirms FY26 Guide:
🔹 Total Sales: +2.5% to +4.5%… pic.twitter.com/iEdJqneTxi— Wall St Engine (@wallstengine) August 18, 2026
Foot traffic per location and overall visits both fell in the second quarter, according to data from Placer.ai. That had investors braced for a soft result.
The stock is still down 1.8% year-to-date through Monday’s close and off around 17% over the past 12 months. So the bar was not exactly high.
There was also an added overhang heading in. CEO Ted Decker’s medical leave of absence, announced last week, had made some investors cautious about the print.
Earnings Beat Fuels Early Optimism
The beat came on both the top and bottom lines. Twelve analysts revised EPS estimates higher in the last 90 days, while 16 cut them, suggesting the street was leaning cautious before results dropped.
Home Depot’s financial health score is rated “fair performance” by InvestingPro, reflecting the challenges the company has faced in a tough housing environment.
Even so, just over half of the analysts tracked by FactSet remain upbeat on the stock. The average analyst price target sits at $378, which is roughly 13% above where the stock traded heading into earnings.
The company’s valuation had already come down following a period of underperformance, which some analysts viewed as a reset that made the risk-reward more attractive.
Guidance Reaffirmed
Home Depot kept its full-year 2026 outlook in place. The company is guiding for sales growth of between 2.5% and 4.5% and adjusted EPS of $14.69, which represents flat to roughly 4% growth.
That guidance was first issued following the first-quarter report, where results also came in better than expected.
In the 90 days leading up to this report, Home Depot saw 12 positive and 16 negative EPS revisions from analysts, reflecting the mixed picture for the sector.
The stock closed at $337.88 on Monday before the pre-market move higher on Tuesday.
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