Home Depot Posts Strong Q2 Results Amid Sluggish Housing Market

Home Depot reported improved second-quarter results despite a sluggish US housing market. Revenue rose to $47.86 billion from $45.28 billion, beating analysts' expectations of $47.24 billion.

The company attributed its success to smaller summer home improvement projects, which saw a 1.5% increase in the number of projects undertaken compared to last year. However, bigger-ticket projects remain down by 2.1%, with concerns around financing and a previous lack of moving activity contributing to this decline.

Homeowners are facing higher borrowing costs due to rising mortgage rates, making it more expensive for them to take out loans using home equity. The average long-term US mortgage rate fell slightly in recent weeks but remains up from last year.

Home Depot is launching express delivery nationwide, which will deliver orders within three hours or less for a flat fee in the US. This move comes as the company maintains its prior sales growth guidance for fiscal 2026 of between 2.5% and 4.5%.