Key Highlights

  • Home Depot shares rose in premarket trading after topping Wall Street estimates for fiscal Q2.
  • Adjusted EPS came in at $4.92, versus $4.73 expected, with Revenue of $47.86 billion versus roughly $47.24-$47.27 billion expected.
  • Comparable sales rose 1.7% globally, the strongest print since Q3 fiscal 2022.
  • Management reaffirmed full-year 2026 guidance rather than raising it.

Home Depot (NYSE: HD) shares are trading higher in premarket action after the company topped Wall Street estimates for fiscal Q2, reporting adjusted EPS of $4.92, versus $4.73 expected, and revenue of $47.86 billion, versus roughly $47.24 billion to $47.27 billion expected.

What Happened

Comparable sales rose 1.7% globally, with U.S. comparable sales up 1.3%, marking the strongest print since the third fiscal quarter of 2022. Customer transactions fell 1%, while the average ticket rose 2.8% to $92.50 from $90.01 a year earlier.

Quarterly Net Income totaled $4.77 billion, or $4.79 per diluted share, compared with $4.55 billion, or $4.58 per diluted share, in the year-ago period.

CFO Richard McPhail said the company saw broad-based Demand across the Business as customers continued to engage in smaller projects, with stronger-than-expected results stemming from share gains among both professional and do-it-yourself customers. He described the housing market as "frozen," noting that customers have the means to spend but remain hesitant about larger projects.

Market Reaction

Shares rose about 1% before the bell, a relatively modest reaction given the scale of the beat, as management kept its full-year guidance unchanged rather than raising it, citing widespread market uncertainty.

Analyst reactions were mixed: Stifel raised its price target to $346 but maintained a Hold rating, while Jefferies downgraded the stock to Hold, citing limited profit growth. The stock's move also came against a backdrop of rising oil prices and bond yields pressuring the broader consumer discretionary sector.

Outlook

Home Depot maintained its forecast for total sales to grow between 2.5% and 4.5% for fiscal 2026, with comparable sales expected to range from flat to up 2%, and diluted EPS expected to grow flat to 4% from $14.23 in fiscal 2025. The guidance factors in IEEPA Tariff refunds, which the company said would help offset elevated costs for fuel, energy, and other product inputs.

The company is operating without its top executive, as CEO Ted Decker remains on a temporary medical leave of absence expected to last a few months, with Ann-Marie Campbell overseeing store and field operations and McPhail assuming responsibility for financial matters and the company's professional-customer business units in the interim.