Home Depot Posts Strong Earnings Despite Sluggish Housing Market

Home Depot delivered a stronger-than-expected fiscal second quarter, but its full-year outlook remains unchanged due to high borrowing costs and a sluggish housing market. Revenue rose to $47.86 billion from $45.28 billion a year earlier, beating the consensus estimate of $47.24 billion. Adjusted earnings came in at $4.92 per share, also ahead of expectations.

The retailer saw broad-based demand across its business as customers continued to engage in smaller home-improvement projects, with comparable sales increasing 1.7% globally and 1.3% in the U.S. However, big-ticket projects fell 2.1%, reflecting a housing market still constrained by elevated financing costs.

Chief Financial Officer Richard McPhail said that 'the mix matters' for Home Depot's customers, who are opting for smaller projects despite higher borrowing costs. The company maintained its fiscal 2026 outlook for sales growth of 2.5% to 4.5%, but shares rose about 2% in premarket trading.