Home Depot Exceeds Q2 Expectations with Strong Demand and $11.42B in Operating Cash Flow

Home Depot's second-quarter results have exceeded expectations, driven by strong demand across its business. Net receivables increased approximately 18.5% year over year to $6.96 billion at the end of Q2, outpacing quarterly sales growth of 5.7%. The company generated $11.42 billion in operating cash flow during the first half of fiscal 2026.

The retailer's second-quarter net sales reached $47.86 billion, an increase of $2.58 billion from a year earlier. Comparable sales increased 1.7%, while comparable customer transactions declined 1% and average ticket increased 2.8%. Home Depot delivered higher quarterly profitability, with gross profit increasing 6.5% to $16.12 billion and operating income rising 4.3% to $6.84 billion.

The company ended the quarter with a notable increase in working-capital assets, including net receivables of $6.96 billion and merchandise inventory of $26.85 billion. Home Depot's balance sheet showed substantial cash and equivalents at $2.09 billion. Despite the increase in receivables and inventory, operating expenses grew faster than sales, reaching 8.2%.

Home Depot still carried substantial debt at quarter-end, with short-term debt totaling $4.25 billion and long-term debt excluding current installments standing at $43.95 billion. The company reaffirmed its fiscal 2026 outlook following the stronger-than-expected Q2 performance, forecasting 2.5% to 4.5% total sales growth.