10-QPeriod: Q2 FY2027

HOME DEPOT, INC. Quarterly Report for Q2 Ended Aug 2, 2026

Filed August 25, 2026For Securities:HD

Summary

Home Depot, Inc. reported solid financial results for the second quarter and first half of fiscal year 2026. The company demonstrated revenue growth, driven by both acquisitions and comparable sales increases, alongside effective cost management. Net sales for the second quarter rose to $47.9 billion, a 5.7% increase year-over-year, while diluted earnings per share reached $4.79. For the first six months, net sales were $89.6 billion, up 5.3% from the prior year, with diluted EPS at $8.09. Operational highlights include a notable increase in gross profit margin during the second quarter, partly due to IEEPA tariff refunds, which helped offset rising operating costs. Despite some pressures on customer transactions, an increase in average ticket size contributed to positive comparable sales growth. The company continues to invest in its business through capital expenditures and strategic acquisitions, including the recent integration of Mingledorff's. Management expresses confidence in the company's liquidity and ability to meet financial obligations and strategic investment needs.

Key Highlights

  • 1Net sales increased by 5.7% to $47.9 billion in Q2 FY2026 and by 5.3% to $89.6 billion for the first six months of FY2026.
  • 2Diluted earnings per share for Q2 FY2026 were $4.79, up from $4.58 in the prior year period, and $8.09 for the first six months, up from $8.03.
  • 3Gross profit margin improved to 33.7% in Q2 FY2026 from 33.4% in Q2 FY2025, benefiting from IEEPA tariff refunds.
  • 4Comparable sales increased by 1.7% in Q2 FY2026, driven by a 2.8% rise in comparable average ticket, though customer transactions decreased by 1.0%.
  • 5The company generated $11.4 billion in cash flow from operations in the first six months of FY2026.
  • 6Home Depot completed the acquisition of Mingledorff's for approximately $1.1 billion in May 2026, integrating it into its SRS segment.
  • 7The company maintained a strong balance sheet with $2.1 billion in cash and cash equivalents as of August 2, 2026, and has $11.7 billion remaining under its share repurchase authorization, though repurchases are currently paused.

Frequently Asked Questions

Home Depot reported a solid performance for the second quarter and first half of fiscal year 2026. Net sales increased year-over-year, with Q2 reaching $47.9 billion and the first six months reaching $89.6 billion. Diluted earnings per share also saw an increase, to $4.79 for Q2 and $8.09 for the first six months.

The company completed the acquisition of Mingledorff's for approximately $1.1 billion in May 2026, which contributed to net sales growth in the current periods. The acquisition of GMS, completed in September 2025, also continued to drive incremental net sales.

Inventory turnover remained steady at 4.5 times at the end of Q2 FY2026. While net sales and gross profit increased, operating expenses, particularly SG&A, also rose due to higher operating costs relative to sales performance. The company is monitoring cost pressures related to fuel, energy, and product inputs.

Home Depot prioritizes investing in the business, followed by dividends, and then returning excess cash to shareholders via repurchases. The company has a strong liquidity position with $2.1 billion in cash and cash equivalents. Share repurchases are currently paused as the company aims to reduce outstanding debt, and approximately $11.7 billion remains available under its authorization.