Key Highlights

● Net sales were $47.86 billion, up 5.7%, while comparable sales rose 1.7%.

● Net earnings were $4.77 billion, up 4.7%, with adjusted diluted EPS of $4.92.

● The company ended the quarter with 2,364 retail stores and more than 1,340 SRS locations.

● Fiscal 2026 guidance was reaffirmed, with total sales growth of approximately 2.5% to 4.5%.

The Home Depot, Inc. (NYSE:HD) announced second-quarter fiscal 2026 results on 18 August 2026, covering the three months ended 2 August 2026. Net sales were $47.86 billion, up 5.7% from $45.28 billion a year earlier. Comparable sales, which strip out the effect of new stores and acquisitions, rose by a much smaller 1.7% in total and 1.3% in the United States. The difference between headline sales growth of 5.7% and comparable growth of 1.7% is the first thing to understand about the quarter. It indicates that a substantial share of the increase came from sources other than like-for-like demand in existing stores.

Earnings, adjusted and unadjusted

Net earnings were $4.77 billion, up 4.7% from $4.55 billion. GAAP diluted earnings per share were $4.79, compared with $4.58 a year earlier. Adjusted diluted EPS, a non-GAAP measure, was $4.92, compared with $4.68. Earnings therefore grew a little more slowly than sales. The filing records $125 million of acquired intangible asset amortisation in the quarter related to SRS. The gap of $0.13 per share between adjusted and GAAP EPS is a company-defined adjustment. Net earnings growth of 4.7% was below the 5.7% growth in net sales.

Acquisitions and the store base

The company ended the quarter with 2,364 retail stores and more than 1,340 SRS locations. The release names SRS and GMS as acquired businesses but gives no deal terms or dates. The cash flow statement shows $1.33 billion of net payments for businesses acquired in the six months ended 2 August 2026. The six-month figure is not split between SRS and GMS. Together these figures show a retailer that is growing through professional-customer distribution as well as through its core stores. Guidance for roughly 15 new stores in fiscal 2026 suggests organic store growth remains small, so acquisitions are likely to remain an important contributor to total sales growth.

Fiscal 2026 guidance reaffirmed

Management reaffirmed its fiscal 2026 guidance. It expects total sales growth of approximately 2.5% to 4.5% and comparable sales growth of approximately flat to 2.0%. Gross margin is expected to be about 33.1%, operating margin 12.4% to 12.6%, and adjusted operating margin 12.8% to 13.0%. Net interest expense is guided at about $2.3 billion, the effective tax rate at about 24.3%, and capital expenditure at about 2.5% of sales. Diluted EPS growth is forecast at approximately flat to 4.0% from $14.23 in fiscal 2025, and adjusted diluted EPS growth at approximately flat to 4.0% from $14.69. These are forward-looking company targets, not results. At the stated ranges, the midpoint of total sales growth is therefore 3.5%, which is well above the midpoint of comparable growth, again pointing to acquisitions and new stores as contributors.

Dividends Edge Up While Acquired Growth Flatters the Headline

The quarterly cash dividend was $2.33 per share, against $2.30 a year earlier, according to the Form 10-Q, which also shows $4.64 billion of dividends paid in the first six months, against $4.57 billion in the same period a year earlier. The increase in cash paid is small, at roughly 1.5%. The company's forward-looking statements name tariffs and the state of the housing and home improvement markets among the risks. The main questions are how far comparable sales can recover toward the upper end of guidance and how much acquired growth continues to flatter the headline.