Home Depot Sees Record Sales Growth Amid Macro Challenges

The Home Depot (HD) released its second quarter 2026 earnings report on August 18, 2026. Net sales reached $47.9 billion, a 5.7% increase from the prior year period.

This growth was driven by demand for smaller projects and contributions from the GMS acquisition. Comparable sales showed a 1.7% increase, reflecting broad-based demand across 13 of 16 merchandising departments.

The company's adjusted diluted earnings per share (EPS) came in at $4.92, up 5.1% from the second quarter of fiscal 2025. Gross margin increased by 25 basis points due to International Emergency Economic Powers Act (IEEPA) tariff refunds, partially offset by rising logistical costs.

The company's online comparable sales grew by 11%, marking the fifth consecutive quarter of double-digit increases for its digital platforms. However, big ticket transactions decreased by 1% due to continued pressure on larger discretionary home improvement projects.