Home Depot Sales Lifted by Smaller Projects Amid Housing Sector Slump

Home Depot's sales have improved in its second quarter, as customers focused on smaller projects during the summer months. The U.S. housing sector is still experiencing a slump, but revenue increased to $47.86 billion from $45.28 billion. This edged out the $47.24 billion that Wall Street had expected.

The company's Chief Financial Officer, Richard McPhail, said in prepared remarks that 'we saw broad based demand across the business as customers continued to engage in smaller projects.' Neil Saunders, managing director of GlobalData, pointed out that while this is encouraging, it may be a sign that bigger-ticket projects are still being delayed due to concerns around financing.

McPhail remains upbeat about Home Depot's ability to navigate current conditions. The company has posted solid back-to-back quarterly performances this year despite the struggles of the U.S. housing market. Home Depot is sticking with its earlier sales growth guidance for fiscal 2026 of between 2.5% and 4.5%, as well as its expectations that comparable sales will be flat to up 2%. This outlook includes tariff refunds, which are expected to partially offset higher fuel, energy, and other product input costs throughout the year.