Home Depot reported second-quarter fiscal 2026 diluted earnings per share of $4.79, beating Wall Street’s consensus estimate of $4.73, as the home improvement retailer delivered results that exceeded expectations on both earnings and revenue.
The company’s adjusted diluted earnings per share reached $4.92 for the quarter ended August 2, 2026, compared with the prior-year period’s $4.68, according to CNBC. Revenue climbed to $47.86 billion, surpassing the expected $47.27 billion and marking a 5.7% increase year over year.
Comparable sales — a key metric tracking sales from stores open for at least a year — rose 1.7%, outpacing the Street’s expectation of 0.9% growth. CFO Richard McPhail told CNBC this marked the company’s highest comparable sales performance since the third quarter of 2022, reflecting broad-based customer engagement despite ongoing economic headwinds.
McPhail characterized the operating environment as “frozen housing market conditions,” citing lower home turnover and mortgage rates that have kept consumers from larger renovation projects. However, he emphasized that Home Depot is gaining market share and serving customers better through continued investment in its business and operational focus, according to CNBC. The CFO noted customers have the means to spend but remain hesitant about bigger projects due to concerns over inflation, fuel costs, and general economic uncertainty.
Despite the challenging macroeconomic backdrop, Home Depot saw engagement across both its professional and do-it-yourself customer segments, with customers continuing to pursue smaller projects. The company reaffirmed its full fiscal 2026 guidance, including total sales growth of approximately 2.5% to 4.5%, comparable sales growth of approximately flat to 2.0%, and adjusted diluted earnings-per-share growth of approximately flat to 4.0% from fiscal 2025, according to the company’s 8-K filing.
The guidance includes expected tariff refunds under the International Emergency Economic Powers Act (IEEPA), which the company said will partially offset unplanned fuel, energy, and other product input costs throughout the year. The company also announced that CEO Ted Decker is taking a temporary medical leave of absence for a few months, with Ann-Marie Campbell, senior executive vice president of U.S. stores and operations, overseeing day-to-day operations.
Home Depot’s ability to beat expectations while navigating a sluggish housing market reflects its strategic focus on the professional contractor segment, which has proven more resilient to macroeconomic pressures than the broader consumer home improvement market. The company’s comparable sales beat came as many retailers across the sector have faced mixed results, with some posting earnings beats while others struggle with consumer spending patterns.
Sources
- CNBC — Q2 2026 earnings per share, revenue, comparable sales, and CFO commentary on market conditions
- StockTitan (SEC 8-K Filing) — Official earnings announcement, adjusted diluted EPS, net sales, comparable sales growth, and fiscal 2026 guidance
- MarketBeat — Consensus earnings estimate of $4.73 per share
- Yahoo Finance — Pre-earnings analyst expectations and consensus estimates
