The second quarter finished better than expected for Home Depot with earnings and comparable sales advancing as customers continue to engage in smaller home projects.
Net earnings were $4.77 billion, or $4.79 per diluted share, versus $4.55 billion, or $4.58 per diluted share, in the quarter a year earlier. Adjusted for one-time events, diluted earnings per share were $4.92 versus $4.68 in the year-prior period, the company stated.
An analyst consensus estimate from Zacks Investment Research anticipated adjusted diluted earnings per share at $4.71 and sales at $47.46 billion.
Comparable sales gained 1.7% in the quarter year over year with comparable transactions down 1% and average ticket up 2.8%. Net sales were $47.86 billion versus $45.28 billion in the year-previous period.
Operating income was $6.84 billion versus $6.56 billion in the quarter a year before, while adjusted operating income was $7.02 billion versus $6.69 billion.
Home Depot reaffirmed its fiscal 2026 guidance, which includes IEEPA tariff refunds, which it expects to partially offset unplanned fuel, energy and other product input costs throughout the fiscal year. The company outlook is for total sales growth of 2.5% to 4.5%, comp growth of flat to 2% and adjusted diluted earnings per share gains of flat to 4%.
As it released its second-quarter data, Home Depot reported it is rolling out Express Delivery across the United States, bringing rapid fulfillment to millions of Pro and do-it-yourself customers for a flat fee with no subscription or membership required. With Express Delivery, customers can have eligible products dropped off in three hours or less. Shoppers can find Express Delivery eligibility on product pages and in the cart at checkout.
Earlier this month, Home Depot announced its chair, president and CEO Ted Decker was taking a temporary leave of absence to deal with a health issue.
In announcing the results on a conference call, Richard McPhail, Home Depot executive vice president and CFO, said Home Depot’s second-quarter results surpassed company expectations with greater general demand arising from consumers’ ongoing engagement with smaller, less expensive home projects.
“Our customers continue to engage in home improvement projects and throughout the quarter, we saw broad based demand across the business,” McPhail said. “In the U.S., our northern and western divisions posted positive comps. While consumer uncertainty and housing affordability continue to pressure demand for larger home improvement projects, we remain focused on what we can control: our strategy to drive our culture, delivering a frictionless interconnect experience and winning the ‘Pros.’ ”
Ann-Marie Campbell, Home Depot senior executive vice president, added the second0-quarter results were a testament to company investments, including technology, made “across the business and our associates’ focus on customer service.
