Home Depot and Lowe's Paint Mixed Q2 Picture for US Consumer

Home improvement retailers Home Depot (HD) and Lowe's (LOW) reported their second-quarter fiscal 2026 results, offering insights into the US consumer and housing market.

Both companies saw mixed but relatively consistent pictures. Consumers are still spending on smaller repairs, maintenance, and necessary projects, but larger discretionary renovations remain under pressure due to elevated borrowing costs, housing affordability concerns, and historically weak housing turnover.

Home Depot delivered better-than-expected Q2 results, with sales of $47.86 billion, up nearly 6% from the year-ago period and topping estimates. Net income reached $4.8 billion, or adjusted earnings of $4.92 per share, which was up 5% YoY and exceeded EPS expectations by more than 4%. The company reaffirmed its fiscal 2026 outlook.

Lowe's Q2 report reinforced similar economic themes, but its updated outlook was more cautious. The company generated Q2 sales of $25.95 billion, up 8% from a year ago, but missed expectations. Comparable sales increased just 0.2%, with strength in Pro customers and online sales offsetting pressure on discretionary DIY spending.

Home Depot's results suggest the consumer has not stopped spending altogether, with customers continuing to buy products for repairs, maintenance, and smaller projects. However, Lowe's cautionary update highlights greater exposure to the continued pullback in discretionary DIY demand.