Home Depot (NYSE:HD) Announces Earnings Results, Beats Expectations By $0.19 EPS

Home Depot (NYSE:HD) posted its earnings results on Tuesday. The home improvement retailer reported $4.92 EPS for the quarter, beating analysts’ consensus estimates of $4.73 by $0.19, FiscalAI reports. Home Depot had a net margin of 8.41% and a return on equity of 106.42%. The company had revenue of $47.86 billion during the quarter, compared to analysts’ expectations of $47.24 billion. During the same quarter in the prior year, the company posted $4.68 earnings per share. Home Depot’s revenue for the quarter was up 5.7% compared to the same quarter last year. Home Depot updated its FY 2026 guidance to 14.690-15.278 EPS.

Here are the key takeaways from Home Depot’s conference call:

• Second-quarter sales rose 5.7% to $47.9 billion, while comparable sales increased 1.7% and adjusted diluted EPS grew 5.1% to $4.92, exceeding management’s expectations.
• Demand broadened across the business, with 13 of 16 merchandising departments posting positive comps and professional-customer sales outperforming DIY. Online sales increased 11% for the fifth consecutive quarter of double-digit growth.
• Home Depot highlighted continued progress in delivery, including nationwide three-hour Express Delivery, same- or next-day delivery for more than 65% of in-stock parcel products, and two-day delivery for approximately 55% of stocked big-and-bulky products.
• The company reaffirmed fiscal 2026 guidance, calling for comparable sales ranging from flat to up 2%, total sales growth of approximately 2.5% to 4.5%, and adjusted EPS growth of flat to 4%.
• Consumer uncertainty, housing affordability, and historically low housing turnover continue to pressure larger discretionary home-improvement projects. Tariff refunds provided a second-quarter benefit, but management expects fuel, energy, and product-input cost pressures to largely offset that benefit over the year, with gross margin expected to be roughly flat year over year in the fourth quarter.

Home Depot Stock Performance

HD opened at $343.91 on Thursday. The company has a current ratio of 1.08, a quick ratio of 0.28 and a debt-to-equity ratio of 2.64. Home Depot has a 12-month low of $289.10 and a 12-month high of $426.75. The firm has a 50 day moving average of $340.56 and a two-hundred day moving average of $340.77. The firm has a market capitalization of $342.92 billion, a PE ratio of 24.07, a P/E/G ratio of 4.06 and a beta of 0.95.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Advocate Investing Services LLC acquired a new stake in Home Depot during the 4th quarter worth about $25,000. Parvin Asset Management LLC raised its position in Home Depot by 110.0% during the third quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer’s stock valued at $26,000 after acquiring an additional 33 shares in the last quarter. Imprint Wealth LLC acquired a new position in Home Depot in the third quarter valued at approximately $34,000. Triumph Capital Management purchased a new stake in Home Depot in the 3rd quarter worth approximately $40,000. Finally, Binnacle Investments Inc boosted its position in Home Depot by 28.8% in the 2nd quarter. Binnacle Investments Inc now owns 143 shares of the home improvement retailer’s stock worth $52,000 after purchasing an additional 32 shares in the last quarter. Hedge funds and other institutional investors own 70.86% of the company’s stock.

Key Headlines Impacting Home Depot

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Home Depot reported adjusted earnings per share of $4.92 and revenue of $47.86 billion, exceeding analyst estimates of approximately $4.73-$4.71 and $47.24-$47.27 billion, respectively. Revenue rose 5.7% year over year. Home Depot Fiscal Second-Quarter Results Top Street Views; Maintains Full-Year Outlook
• Positive Sentiment: Comparable sales increased 1.7% globally and 1.3% in the U.S., the company’s strongest comparable-sales performance in several years. Higher average transaction values, smaller repair projects and resilient Pro-customer demand helped offset fewer customer visits. Home Depot beats quarterly estimates on smaller project demand
• Positive Sentiment: Analysts generally viewed the results favorably. DA Davidson, Argus and Guggenheim reaffirmed Buy ratings, with price targets of $377, $400 and $425, respectively, supporting the view that Home Depot can gain share before a broader home-improvement recovery. Analysts revise forecasts on Home Depot after Q2 earnings
• Positive Sentiment: Home Depot expanded Express Delivery nationwide, using more than 2,000 stores as local fulfillment hubs to deliver many products within three hours. The initiative could improve online conversion, order frequency and customer retention among both DIY shoppers and professional customers. The Home Depot Expands Nationwide Express Delivery
• Neutral Sentiment: Management maintained its fiscal 2026 outlook, calling for revenue of approximately $168.8 billion-$172.1 billion and EPS of $14.69-$15.28. The unchanged forecast provides stability but signals that management is not yet assuming a meaningful housing recovery.
• Negative Sentiment: Elevated mortgage rates and housing costs continue to discourage major renovations and big-ticket purchases. A $730 million tariff refund largely offset rising fuel, energy, labor and other operating costs, limiting margin upside. Home Depot’s tariff refund was offset by rising costs
• Negative Sentiment: Investors remain cautious because the quarter reflected maintenance and smaller-project demand rather than a broad-based housing rebound. CEO Ted Decker’s medical leave also adds a near-term leadership overhang. Home Depot Just Flashed a Housing Market Warning

Analyst Upgrades and Downgrades

HD has been the subject of a number of recent analyst reports. Citigroup lowered their price objective on Home Depot from $450.00 to $400.00 and set a “buy” rating for the company in a research report on Tuesday, May 12th. The Goldman Sachs Group lowered their price target on Home Depot from $409.00 to $390.00 and set a “buy” rating for the company in a report on Wednesday, May 20th. Morgan Stanley dropped their price target on Home Depot from $420.00 to $400.00 and set an “overweight” rating on the stock in a research note on Wednesday, May 20th. Oppenheimer cut their price objective on shares of Home Depot from $405.00 to $310.00 and set a “market perform” rating on the stock in a report on Monday, May 18th. Finally, Telsey Advisory Group lowered their target price on shares of Home Depot from $435.00 to $410.00 and set an “outperform” rating for the company in a research note on Wednesday, May 20th. Eighteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Home Depot presently has a consensus rating of “Moderate Buy” and a consensus target price of $375.54.

Home Depot Company Profile

The Home Depot, Inc (NYSE: HD) is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot’s core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.