Smaller Projects Lift Home Depot Sales Amid Financing Concerns

Home Depot reported an increase in sales during its fiscal second quarter, as customers focused on smaller projects and spent more money. The company's revenue rose to $47.86 billion from $45.28 billion, exceeding Wall Street expectations of $47.24 billion.

The improvement was attributed to a 1.7% increase in global comparable store sales, with U.S. sales rising 1.3%. Customers also spent more per transaction, averaging $92.50 compared to $90.01 last year.

Neil Saunders of GlobalData noted that smaller projects saw a 1.5% increase, but bigger-ticket projects declined by 2.1%, which he attributed to concerns around financing and a lack of moving activity.

The company's stock rose 2% before markets opened as the outlook for fiscal 2026 remains unchanged, with sales growth expected between 2.5% and 4.5%. Home Depot also announced the launch of express delivery nationwide, which will get orders to customers within three hours or less for a small flat fee.