Home Depot Beat Quarterly Forecasts, Company Leaves Annual Outlook Unchanged

U.S. retail giant Home Depot released its second quarter financial results on Tuesday, before the start of the trading session, which exceeded analyst expectations. Despite the strong report, the company's shares traded nearly flat following the opening.

Home Depot's adjusted earnings per share came in at $4.92, while analysts had expected $4.73. The company's revenue reached $47.86 billion, also surpassing the $47.23 billion consensus forecast and marking a 5.7% increase compared to the same period last year.

The company posted comparable sales growth of 1.7% in the second quarter, with the U.S. market seeing 1.3%. Net income came to $4.8 billion, compared to $4.6 billion in the prior year.

Home Depot's Chief Financial Officer Richard McPhail stated that the quarter's results exceeded expectations and the company saw broad demand across various business segments, as consumers continue spending on relatively small-scale projects.

However, Home Depot kept its 2026 financial guidance unchanged. The company expects adjusted diluted earnings per share growth of 0%-4%, implying a range of $14.69-$15.28. The annual sales growth forecast was maintained at 2.5%-4.5%, while comparable sales growth guidance remained at 0%-2%.

The company's guidance also factors in IEEPA refunds related to U.S. tariffs, which Home Depot estimates will partially offset increases in fuel, energy, and other product costs.

In fiscal 2026, the company plans to open approximately 15 new stores. It expects a gross margin of approximately 33.1% and an adjusted operating margin of 12.8%-13.0%.