The Home Depot (HD) Q2 2027 earnings summary

Executive summary

• Second quarter fiscal 2026 sales reached $47.9 billion, up 5.7% year-over-year, with comparable sales up 1.7% and U.S. comps up 1.3%.

• Net earnings for Q2 were $4.8 billion, or $4.79 per diluted share, with adjusted diluted EPS at $4.92, up 5.1% year-over-year.

• Broad-based demand was observed, especially for smaller projects, with positive comps in Northern and Western U.S., Mexico, and Canada.

• Investments in store experience, technology, and delivery speed drove higher customer satisfaction and sales.

• Pro customer segment posted positive comps, outperforming DIY, supported by expanded services and product assortments.

Financial highlights

• Gross margin was 33.7%, up 25 basis points year-over-year, with gross profit at $16.1 billion (+6.5% YoY), aided by a $685 million IEEPA tariff refund.

• Operating income was $6.8 billion (+4.3% YoY); operating margin was 14.3%, adjusted operating margin 14.7%.

• Customer transactions declined 0.8% to 443.2 million, but average ticket increased 2.8% to $92.50.

• Merchandise inventories stood at $26.8 billion, with inventory turns at 4.5x.

• Return on invested capital was 24.8%, down from 27.2% last year.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: total sales growth of 2.5%–4.5%, comparable sales growth flat to 2.0%.

• Gross margin expected at 33.1%, operating margin 12.4%–12.6%, adjusted operating margin 12.8%–13.0%.

• Diluted and adjusted EPS projected to increase flat to 4% year-over-year.

• Capital expenditures planned at 2.5% of sales; 15 new stores and 40–50 new SRS branches to open.

• Share repurchases remain paused through fiscal 2026 to prioritize debt reduction.