Home Depot Sales Get Boost from Small Projects, But Housing Market Outlook Remains Uncertain

Home Depot's quarterly sales received a boost from small projects, but the outlook for the housing market remains unchanged. The company reported $47.86 billion in revenue for its second quarter, beating Wall Street's expectations of $47.24 billion. Comparable store sales rose 1.7% globally and 1.3% in the US.

Chief Financial Officer Richard McPhail attributed the increase to customers focusing on smaller projects, which saw a 1.5% rise in the number of undertakings compared to last year. Neil Saunders of GlobalData noted that while this may seem unimpressive, it represents a significant improvement from previous periods.

However, concerns around financing and a lack of moving activity continue to impact bigger-ticket projects, with a 2.1% decline in the number of undertakings compared to last year. Homeowners are facing higher borrowing costs due to rising mortgage rates, making larger home improvement projects more daunting.

Despite this, McPhail remains optimistic about Home Depot's ability to navigate current conditions, citing the company's focus on what it can control. The company is launching express delivery nationwide and sticking with its earlier sales growth guidance for fiscal 2026 of between 2.5% and 4.5%.