The Home Depot (HD) Q2 2027 earnings summary

Executive summary

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

• Adjusted diluted EPS was $4.92, a 5.1% increase from last year, exceeding expectations.

• Net earnings for the quarter were $4.8 billion, or $4.79 per diluted share, compared to $4.6 billion, or $4.58 per diluted share, in the prior year.

• Broad-based demand was seen across the business, especially for smaller projects, with positive comps in Northern and Western U.S. divisions, Mexico, and Canada.

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

Financial highlights

• Gross margin was 33.7%, up 25 basis points year-over-year, primarily due to a $685 million IEEPA tariff refund.

• Operating margin was 14.3% (GAAP) and 14.7% (adjusted).

• Operating income rose 4.3% to $6.8 billion; adjusted operating income was $7.0 billion, up 4.8%.

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

• Net cash provided by operating activities for the first six months was $11.4 billion.

Outlook and guidance

• Fiscal 2026 guidance reaffirmed: comp sales expected flat to +2%, total sales growth 2.5%-4.5%.

• Gross margin expected at 33.1%, operating margin 12.4%-12.6%, adjusted operating margin 12.8%-13%.

• 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.