Home Depot Earnings Beat Expectations Despite Housing Headwinds

Home Depot's Q2 FY2026 earnings beat expectations, with a $4.92 adjusted EPS surpassing the consensus of $4.73 and revenue exceeding estimates at $47.86B.

The sequential comp acceleration is seen as a positive sign, with U.S. comps improving from +0.5% in May to +2.2% in July, indicating that the cycle trough may be behind them.

However, management acknowledged the impact of stagnant housing turnover on home improvement spending, citing an estimated $50B in deferred spending due to low housing turnover rates.

The stock trades at $339.78 with a fair value estimate of $303.29, suggesting that the market has already priced in the recovery.