Ever priced out a renovation and decided to wait? You are not alone, and Home Depot's latest numbers show exactly that.
The retailer reported results for its fiscal second quarter of 2026 on Aug. 18, beating analyst forecasts for profit and revenue. It also left its full-year 2026 outlook unchanged, and that choice may say more about the housing market than the earnings do.
The Numbers Beat Expectations
Adjusted profit, which strips out one-time gains and costs, came to $4.92 per share. That topped the $4.73 figure analysts were looking for, according to an LSEG survey.
Revenue landed at $47.86 billion, above the $47.27 billion forecast. Net income rose to $4.77 billion, or $4.79 a share, from $4.55 billion, or $4.58 a share, a year earlier.
Sales climbed 5.7% overall. Comparable-store sales, which track stores open at least a year, rose 1.7%.
That beat the 0.9% gain analysts at StreetAccount expected and was the strongest such result since the third quarter of fiscal 2022, CFO Richard McPhail said.
McPhail described customer activity across categories as "broad engagement" and called Home Depot's customer base "a healthy cohort." That confidence fades a little as a project gets bigger, he said.
Guidance Stays Put
Beating forecasts normally gives a company room to raise its full-year target. Home Depot chose to hold steady instead, and McPhail says uncertainty is the reason.
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"We continue to operate in what I call 'frozen housing market conditions,'" McPhail told CNBC. He added that Home Depot is taking share and serving customers better every day.
Costlier mortgages, a slow housing market, and economic uncertainty have pushed customers to delay the big purchases that come with buying a home. McPhail says it is not a money problem.
"They've told us they have the means to spend, they're just hesitant," he said. Customers also told the company they worry about inflation, fuel costs, and general uncertainty, especially on larger projects.
Tariff refunds offered some support. Home Depot collected $730 million during the quarter, which should partly offset higher-than-planned costs for fuel, energy, and other product inputs.
Of that, $685 million lowered the cost of goods sold and $45 million was still in inventory. McPhail said that is "the vast majority" of the refunds the company expects, and they help it "maintain value."
For the full year, Home Depot continues to project sales growth of 2.5% to 4.5%.
It also expects operating margin, the share of sales left after covering the costs of running the business, to land between 12.4% and 12.6%.
The Pro Bet and Your Portfolio
Home Depot is not just waiting for homeowners to loosen up. It is leaning into professional contractors, a group executives say stays busy even when the broader economy cools.
McPhail called the quarter "a story of share gain with the pro and the consumer." The company plans to keep investing through the freeze, he said.
"We have been consistent through the years that in spite of a frozen housing environment, we're going to keep leaning into investment because we know that over the long run, conditions for home improvement demand are strong," he said.
One leadership note: CEO Ted Decker is taking temporary medical leave for a few months. Ann-Marie Campbell, senior executive vice president for U.S. stores and operations, will run day-to-day operations, with McPhail overseeing financial management and the pro business.
For your portfolio, the real question is not whether Home Depot had a good quarter, because it did. The bigger question is whether customers stop hesitating before the housing market thaws, and whether the push for pro customers keeps paying off while they wait.
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