The Home Depot 8-K
PositiveEarningsGuidance reaffirmed
Smaller-project demand supported sales growth; FY2026 outlook holds with IEEPA tariff refunds expected to partly offset input-cost pressures.
Filed 2026-08-18 06:10 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 FY2026 results with FY2026 guidance reaffirmed. Sales rose 5.7% Y/Y and net earnings rose 4.7%; comparable sales increased 1.7%. Home Depot cited broad-based demand as customers continued to focus on smaller projects.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $47.9B | $45.3B | 5.7% |
| Operating income | $6.84B | $6.56B | 4.3% |
| Net earnings | $4.77B | $4.55B | 4.7% |
| Diluted EPS | $4.79 | $4.58 | 4.6% |
| Adjusted diluted EPS, non-GAAP | $4.92 | $4.68 | 5.1% |
| Comparable sales | 1.7% | 1.0% | +70bp |
| U.S. comparable sales | 1.3% | — | — |
- Comparable average ticket increased 2.8% to $92.50, while customer transactions declined 0.8% to 443.2M.
- H1 net earnings were $8.06B vs $7.98B; operating cash flow was $11.4B vs $8.97B. FCF, calculated as operating cash flow less capital expenditures, was $9.70B vs $7.25B.
- Cash was $2.09B vs $2.80B a year earlier; total debt was $52.9B vs $52.3B.
Guidance
FY2026 guidance reaffirmed overall.
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Total sales growth | FY2026 | ≈2.5%–4.5% | — | — |
| Comparable sales growth | FY2026 | ≈flat–2.0% | — | — |
| New stores | FY2026 | ≈15 | — | — |
| Gross margin | FY2026 | ≈33.1% | — | — |
| Operating margin, GAAP | FY2026 | ≈12.4%–12.6% | — | — |
| Adjusted operating margin, non-GAAP | FY2026 | ≈12.8%–13.0% | — | — |
| Effective tax rate | FY2026 | ≈24.3% | — | — |
| Net interest expense | FY2026 | ≈$2.3B | — | — |
| Diluted EPS growth, GAAP | FY2026 | ≈flat–4.0% from $14.23 in FY2025 | — | — |
| Adjusted diluted EPS growth, non-GAAP | FY2026 | ≈flat–4.0% from $14.69 in FY2025 | — | — |
| Capital expenditures | FY2026 | ≈2.5% of total sales | — | — |
Guidance includes IEEPA tariff refunds, expected to partially offset unplanned fuel, energy and other product input costs. Adjusted operating margin guidance excludes an expected ≈40bp impact from acquired intangible amortization; adjusted EPS guidance excludes an expected ≈$0.50 after-tax impact.
Investor Takeaways
- Track sales and comparable sales against the FY2026 ranges, and whether tariff refunds offset the stated input-cost pressures.
The summary is written by an AI model reading the filing.
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