Home Depot Beats Expectations as Smaller Projects Boost Sales

Home Depot reported a strong second quarter as customers focused on smaller projects in the summer months. The company's revenue increased to $47.86 billion, beating Wall Street's expectation of $47.24 billion. Globally, sales at stores open for at least a year rose 1.7%, while U.S. comparable store sales climbed 1.3%.

The customer transactions decreased by 1%, but the average amount spent per receipt increased to $92.50 from $90.01 last year. Neil Saunders, managing director of GlobalData, noted a rise in smaller projects by 1.5% over the prior year, while bigger-ticket projects declined by 2.1%. This trend is attributed to concerns around financing and a lack of moving activity.

Home Depot's CEO Ted Decker is currently on a temporary medical leave, but CFO Richard McPhail remains optimistic about the company's ability to navigate current conditions. The company stuck with its earlier sales growth guidance for fiscal 2026 of between 2.5% and 4.5%. It also left unchanged its expectations that comparable sales will be flat to up 2%.