Home Depot Beats Expectations Despite Sluggish Housing Market

Home Depot reported improved sales in its second quarter as customers focused on smaller projects during the summer months. Revenue increased to $47.86 billion from $45.28 billion, exceeding Wall Street's expectation of $47.24 billion.

The company's comparable store sales rose 1.7% globally and 1.3% in the U.S., while customer transactions slipped 1%. However, the amount spent per average receipt increased to $92.50 from $90.01 a year earlier.

Neil Saunders, managing director of GlobalData, attributed the growth to an increase in smaller projects undertaken by customers. 'The number of smaller projects undertaken during the quarter increased by 1.5% over the prior year,' he said.

Despite the improvement, Home Depot's outlook remains unchanged due to a sluggish housing market. The company stuck with its earlier sales growth guidance for fiscal 2026 of between 2.5% and 4.5%, as well as its expectations that comparable sales will be flat to up 2%.