A bucket inside a Residence Depot retailer in San Jose, California, US, on Thursday, Aug. 13, 2026.
David Paul Morris | Bloomberg | Getty Photographs
Residence Depot on Tuesday reported fiscal second-quarter outcomes that beat Wall Avenue expectations on the highest and backside traces and reaffirmed its full fiscal yr steerage.
“We proceed to function in what I name ‘frozen housing market’ circumstances, however we additionally know that we’re taking share and that we’re serving our prospects higher each day,” CFO Richard McPhail advised CNBC. “It is a reflection of the continued funding we have made and the give attention to executing our technique.”
McPhail stated Residence Depot noticed “broad engagement” throughout its classes, together with in each its professional and do-it-yourself companies, however the larger uncertainty available in the market led the corporate to reaffirm somewhat than increase its steerage.
He added that Residence Depot’s buyer is “a wholesome cohort,” although he stated the corporate has nonetheless not seen shoppers return to large tasks.
“They’ve advised us they’ve the means to spend, they’re simply hesitant,” he advised CNBC. “Whereas we’re pleased with their stage of engagement within the first half, they do inform us they’re fearful about inflation, about gas prices and about about basic uncertainty, and so there’s a little little bit of hesitancy there because the challenge will get greater.”
Here is how Residence Depot carried out in its second fiscal quarter in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by LSEG:
- Earnings per share: $4.92 adjusted vs. $4.73 anticipated
- Income: $47.86 billion vs. $47.27 billion anticipated
The house enchancment retailer reported internet earnings of $4.77 billion, or $4.79 per share, in contrast with $4.55 billion, or $4.58 per share, the yr prior. Excluding one-time gadgets, Residence Depot reported adjusted earnings per share of $4.92.
Residence Depot noticed comparable gross sales rise 1.7%, beating expectations that they’d be up 0.9%, in response to StreetAccount. McPhail stated it’s the highest comparable gross sales quantity the corporate has posted for the reason that third fiscal quarter of 2022.
Residence Depot additionally reaffirmed its fiscal 2026 steerage, which it stated consists of tariff refunds which can be “anticipated to partially offset unplanned gas, power, and different product enter prices.” McPhail added that the tariff refunds permit the retailer to “keep worth” regardless of price pressures in different areas.
The corporate expects complete gross sales development for the yr to be between 2.5% and 4.5% and working margin between 12.4% and 12.6%.
“The story of the quarter is a narrative of share acquire with the professional and the buyer, and we’re assured that our investments are working to permit us to win available in the market,” McPhail stated.
Residence Depot has been pressured by decrease housing turnover, increased mortgage charges and financial uncertainty as prospects have postpone tasks that include shopping for a brand new residence. Nonetheless, the corporate has been attempting to draw extra professional consumers, a cohort that executives have beforehand stated is basically unaffected by the macroeconomic circumstances.
“We’re targeted on controlling what we will management,” McPhail stated. “We now have been constant by the years that despite a frozen housing surroundings, we’ll preserve leaning into funding as a result of we all know that over the long term, circumstances for residence enchancment demand are sturdy.”
The corporate additionally introduced final week that CEO Ted Decker is taking a “short-term medical depart of absence” for a number of months. Ann-Marie Campbell, Residence Depot’s senior government vice chairman of U.S. shops and operations, will oversee the day-to-day operations whereas McPhail will head the monetary administration and professional enterprise, in response to the corporate.
