Home Depot Q2 Sales Rise 5.7% Amid Strong Pro Demand
Home Depot reported improved results for its fiscal second-quarter 2026. Sales rose 5.7% year over year to $47.9 billion, with comparable sales increasing 1.7% for the company and 1.3% in the US. Net earnings were $4.8 billion, or $4.79 per diluted share, up from last year's results of $4.6 billion and $4.58 per diluted share respectively.
The company cited continued demand for smaller repairs and home improvement projects, as well as positive trends in online sales. Online comparable sales grew 11%, marking the fifth consecutive quarter of double-digit growth. However, large discretionary home improvement projects were negatively impacted by housing affordability and customer uncertainty.
Professional customers outperformed DIY customers during Q2, with 13 of the 16 merchandising departments reporting positive comparable sales. The Pro market is estimated to be $700 billion of the overall $1.2 trillion home improvement market. Home Depot's acquisitions, including GMS, are expected to contribute to sales in fiscal 2026, but also negatively impacted gross margin by about 60 basis points.