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Home Depot Q2 Earnings Exceed Expectations on Smaller Project Demand

Guavy AI Editorial Team Published August 25, 2026

Instruments

Home Depot reported its second-quarter earnings for fiscal 2026, exceeding internal expectations due to demand for smaller repair and maintenance projects. The company's net sales reached $47.9 billion, a 5.7% increase from the prior year period, driven by contributions from the GMS acquisition and higher demand in the Northern and Western divisions.

The firm's adjusted diluted earnings per share (EPS) rose to $4.92, up 5.1% compared to the second quarter of fiscal 2025. Gross margin increased 25 basis points to 33.7%, mainly due to International Emergency Economic Powers Act (IEEPA) tariff refunds that offset rising logistical costs.

However, operating margin declined to 14.3%, down from 14.5% in the prior year period. Management attributed market share gains to investments in interconnected retail capabilities and the professional customer segment, including the integration of SRS Distribution and GMS.

Home Depot Q2 Earnings Exceed Expectations on Smaller Project Demand

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