Home Depot beats Street in Q2; launches national express delivery
The Home Depot Inc. exceeded Wall Street expectations for earnings and revenue despite a tough housing market, and is using stores as local fulfillment hubs.
The home improvement giant reported net earnings for the second quarter of fiscal 2026 of $4.8 billion, or $$4.92 per adjusted diluted share, up 4% from net earnings of $4.6 billion, or $4.58 per diluted share, in the same period of fiscal 2025.
Net sales totaled $47.9 billion, a 6% year-over-year increase from $45.3 billion. Comparable sales for the second quarter of fiscal 2026 increased 1.7%, and comparable sales in the U.S. increased 1.3%.
Analysts had predicted adjusted earnings per share of $4.93, revenue of $47.27 billion and comparable sales growth of 0.9%. Comparable sales showed the best year-over-year increase since the third quarter of fiscal 2022.
“We continue to operate in what I call ‘frozen housing market’ conditions, but we also know that we’re taking share and that we’re serving our customers better every day,” Home Depot CFO Richard McPhail said in commentary to CNBC. ““While we’re happy with their level of engagement in the first half, (customers) do tell us they’re worried about inflation, about fuel costs and about, about general uncertainty, and so there is a little bit of hesitancy there as the project gets bigger.”
Home Depot reaffirmed its guidance for fiscal year 2026. Guidance includes the expected positive impact of the retailer’s refunds on tariffs paid on imported products under the International Emergency Economic Powers Act, or IEEPA. In February 2026, the U.S. Supreme Court ruled that theTrump Administration was not given the authority to unilaterally impose tariffs by IEEPA.
Fiscal year 2026 guidance includes:
Total sales growth of approximately 2.5% to 4.5%.
Comparable sales growth of approximately flat to 2%.
Approximately 15 new stores.
Diluted earnings-per-share to grow approximately flat to 4% from $14.23 in fiscal 2025.
Adjusted diluted earnings-per-share to grow approximately flat to 4% from $14.69 in fiscal 2025.
Home Depot expands express delivery
Home Depot is also rolling out an express delivery option nationwide. Leveraging its supply chain network and more than 2,000 U.S. stores functioning as fulfillment hubs, the retailer can provide delivery of select items in three hours or less, including materials and supplies for Pro construction projects, for what it calls a “small fee” and no subscription or membership. Shoppers can view express delivery eligibility on product pages and in the cart at checkout.
"Customers expect products to be available when and where they need them, and express delivery helps us meet that expectation with a fast, reliable solution," said Jordan Broggi, executive VP of interconnected retail, Home Depot. "Whether you're a DIYer who needs one more bag of fertilizer to finish the yard or a Pro running short on adhesives and caulk for a time-sensitive job, express delivery makes it easier than ever for our customers to get the supplies they need, right when they need them most."
Home Depot has been partnering with Instacart to offer same-day delivery in as fast as an hour from nearly 2,000 store locations across the U.S. since 2024.
[READ MORE: The Home Depot partners to expand same-day delivery options]
That service also includes Instacart's Big & Bulky solution that enables retailers to offer same-day and scheduled delivery for large items up to 60 pounds. Home Depot also began partnering with the Walmart white-label GoLocal delivery service in late 2021.
At the end of the second quarter, Home Depot operated a total of 2,364 retail stores and over 1,340 SRS locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The company employs more than 470,000 associates.
