Home Depot beats estimates, reaffirms fiscal 2026 guidance

Investing.com -- Home Depot Inc. (NYSE: HD) reported second-quarter results before the open on Tuesday, exceeding analyst expectations and sending shares around 1.7% higher premarket.

Adjusted earnings per share of $4.92 beat the consensus estimate of $4.73 by $0.19. Revenue reached $47.86 billion, surpassing the $47.23 billion estimate and representing a 5.7% increase from $45.28 billion in the same quarter last year.

The company reaffirmed its fiscal 2026 guidance, projecting adjusted diluted earnings per share growth of flat to 4.0% from $14.69 in fiscal 2025, which translates to a range of $14.69 to $15.28. The midpoint of $14.99 compares to the guidance provided. Home Depot also expects total sales growth of approximately 2.5% to 4.5% and comparable sales growth of flat to 2.0% for the full year.

Comparable sales for the second quarter increased 1.7%, while U.S. comparable sales grew 1.3%. Net earnings were $4.8 billion, or $4.79 per diluted share, compared with $4.6 billion, or $4.58 per diluted share, in the prior year period.

"Our second quarter results exceeded our expectations. We saw broad-based demand across the business as customers continued to engage in smaller projects," said Richard McPhail, Executive Vice President and Chief Financial Officer.

The company's fiscal 2026 guidance includes IEEPA tariff refunds, which are expected to partially offset unplanned fuel, energy, and other product input costs throughout the fiscal year. Home Depot plans to open approximately 15 new stores and expects a gross margin of approximately 33.1% and an adjusted operating margin of approximately 12.8% to 13.0%.

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