Home Depot Q2 Sales Exceed Expectations as Renovation Cycle Continues

Home Depot's second quarter results for fiscal year 2026 showed revenue exceeding expectations as homeowners opted to renovate instead of selling their properties. The company reported net sales of $47.86 billion, surpassing forecasts, with a comparable average ticket increasing by 2.8% to $92.50. This growth came from larger baskets, as the number of transactions declined by 1.0%. Gross margin expanded to 33.7% from 33.4% in the previous year, despite SG&A costs rising due to the SRS Distribution integration and expansion into the professional contractor market.

The company's management reaffirmed their full-year sales growth forecast of 2.5% to 4.5%, citing IEEPA tariff refunds offsetting higher input costs. Trade policy is seen as a key factor in the second half of the year. The adjusted diluted EPS for the quarter came in at $4.92, marking the strongest result in the period shown.