Home Depot Pro Sales Outpace DIY as Q2 Earnings Beat Expectations

Home Depot's (HD) second-quarter earnings report showed that its Pro sales outpaced DIY customers, leading to a 5.7% year-over-year increase in total sales to $47.9 billion.

The company's adjusted diluted earnings per share rose to $4.92 from $4.68, beating expectations. However, the gross margin line told a more complicated story, with a 25-basis-point gain largely driven by a $685 million tariff refund.

According to CFO Richard McPhail, the refund was not unique to Home Depot and was used to offset rising fuel, energy, and input costs rather than letting it fall straight to the bottom line. The company reaffirmed its full fiscal 2026 guidance, with comps expected to be flat to 2%, total sales growth of 2.5% to 4.5%, and adjusted operating margin of 12.8% to 13%.

The Pro business was a key driver of Home Depot's growth, outperforming DIY sales for the quarter, while SRS, the company's roofing and building-products distributor, also posted positive results across every vertical it serves.