Home Depot reported Q2 FY2026 results that beat expectations, driven by broad-based strength across 13 of 16 merchandising departments, with particular strength in the pro segment and portable power. The company reaffirmed its full-year guidance despite a volatile cost environment, using tariff refunds to offset higher fuel and energy costs. Management highlighted significant supply chain improvements, including faster delivery speeds and the nationwide launch of express delivery. Q2 comps were +1.7% total and +1.3% in the U.S., with July accelerating to +2.3% and +2.2% respectively, and 13 of 16 departments positive.
Home Depot reported Q2 FY2026 results that beat expectations, driven by broad-based strength across 13 of 16 merchandising departments, with particular strength in the pro segment and portable power. The company reaffirmed its full-year guidance despite a volatile cost environment, using tariff refunds to offset higher fuel and energy costs. Management highlighted significant supply chain improvements, including faster delivery speeds and the nationwide launch of express delivery. Q2 comps were +1.7% total and +1.3% in the U.S., with July accelerating to +2.3% and +2.2% respectively, and 13 of 16 departments positive.
Demand remained resilient with broad-based engagement across 13 of 16 departments, pro comps positive and outperforming DIY, and big-ticket transactions positive. Management cited continued pressure on larger discretionary projects due to housing affordability and consumer…
Q2 comps were +1.7% total and +1.3% in the U.S., with July accelerating to +2.3% and +2.2% respectively, and 13 of 16 departments positive.
Pro comps were positive and outperformed DIY, driven by strength in portable power, decking, and dimensional lumber; SRS Distribution comped above the company average.
Reported gross margin was 33.67%, reinforcing the quarter's better-than-guided profitability.
Demand remained resilient with broad-based engagement across 13 of 16 departments, pro comps positive and outperforming DIY, and big-ticket transactions positive. Management cited continued pressure on larger discretionary projects due to housing affordability and consumer uncertainty, but saw consistent demand through Q3.
Management reaffirmed capital expenditure guidance of approximately 2.5% of sales for fiscal 2026, with continued investment in supply chain, technology, and store experience to support faster delivery and interconnected retail.
Management emphasized outperforming expectations, taking market share, and strong execution despite macro headwinds, with a forward-looking focus on investments and pro momentum.
“over the last 18 months, we've reduced our delivery lead times approximately 45% in the U.S., which is leading to greater conversion with our customers. And now, approximately 55% of our big and bulky deliveries on products we stock are de…”
“the net benefit of refunds in our P&L being around 85 basis points... While those refunds are going to go to offset costs in Q2 and Q3... gross margin rate in the fourth quarter will likely be right around flat compared to last year.”
“this month we launched express delivery nationwide with delivery on tens of thousands of products in three hours or less.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Capex | FY2026 | 2.5% | 2.5% | MAINTAINED |
| CapexNEW_STORES | FY2026 | 15 | 15 | MAINTAINED |
| EPS | FY2026 | $0.00–$4.00 | $2.00 | MAINTAINED |
| Gross margin | FY2026 | 33.1% | 33.1% | MAINTAINED |
| Op margin | FY2026 | 12.4%–12.6% | 12.5% | MAINTAINED |
| Op marginADJUSTED | FY2026 | 12.8%–13% | 12.9% | MAINTAINED |
| RevenueSRS | FY2026 | 5% | 5% | MAINTAINED |
| Revenue | FY2026 | 2.5%–4.5% | 3.5% | MAINTAINED |
Home Depot's exclusive launch partnership with USG could drive significant volume for USG's new ultralight panels, solidifying its product launch and capturing early market share in the pro channel.
“The Home Depot will be the exclusive launch partner for USG's newest innovation, ultralight tufts, chips, and panels in the big box retail channel.”
… advancements in our supply chain capabilities to more easily and quickly get product to the customer. As a result of our investments, we are now able to provide next-day delivery coverage on key SKUs to nearly 60% of the population. We are encouraged with the positive performance we are seeing in these markets and will continue to expand population coverage In addition, we are expanding our relationship with USG across our business. The Home Depot will be the exclusive launch partner for USG's newest innovation, ultralight tufts, chips, and panels in the big box retail channel. Further solidifying our leadership as the go-to retailer for pro-preferred building materials, this product stands out as the lightest and most durable half-inch panel in the market. We're also accelerating growth with another key pro-exclusive, Gruco Joint Treatments. Gruco has driven strong pro-loyalty with us for decades, and we are excited to expand their product lineup across our stores. As we look ahead to the third quarter, our merchandising organization remains focused on being our customers' advocate for value. This means continuing to provide a broad assortment of best-in-class products that …
SRS Distribution is exceeding expectations, posting stronger-than-company-average comps across all verticals, indicating robust underlying demand and successful integration, which bodes well for the roofing supply market.
“SRS comped above the company average this quarter. They were positive comped in all verticals and Looks like they're taking significant shares, so we couldn't be more pleased with that acquisition.”
Home Depot's express delivery, launched nationwide this month, offers delivery of tens of thousands of products in three hours or less, leveraging its store footprint as a competitive moat against pure-play online retailers. — This nationwide service leverages Home Depot's physical store locations to achieve delivery speeds that rival or beat major e-commerce players, strengthening its value proposition for urgent small orders and potentially pulling market share from online-only competitors.
… projects to feel more confident in their ability to complete a home improvement project. Customer feedback has been incredibly positive. In terms of our interconnected experience, we're making progress on a multitude of initiatives, including delivery. We know speed of delivery is important to our customers, and today, for in-stock parts of products, over 65% of our deliveries are same day or next day. And we're continuing to get faster. In fact, this month we launched express delivery nationwide with delivery on tens of thousands of products in three hours or less. In addition, We've evolved our appliance delivery model to better serve direct purchases. We now stock a select assortment of appliances that can reach our customers next day in certain markets. We are seeing a sales lift in these markets and will continue to lean in to broaden these efforts. And we are winning with the pros. Pro-positive comps in the quarter and we saw strong performance across all our pro cohorts. This is being driven by the many investments we have made across our systems, capabilities for pros, product assortment, job block quantities, delivery, sales teams, and specialized services. There is …
Home Depot's delivery lead times for big and bulky products have been reduced by approximately 45% over the last 18 months, with 55% now delivered within two days, a significant supply chain achievement driving conversion. — This aggressive improvement in delivery speed for bulky items raises competitive pressure on other big-box and specialty retailers, potentially forcing them to invest more heavily in logistics to retain market share.
“over the last 18 months, we've reduced our delivery lead times approximately 45% in the U.S., which is leading to greater conversion with our customers. And now, approximately 55% of our big and bulky deliveries on products we stock are”
… the best interconnected experience is a key component of our strategy, and our faster delivery speeds are resonating with customers and driving greater engagement. As Ann mentioned, we have made meaningful progress with our delivery speeds. This progress extends beyond parcel products. For big and bulky products, we've also increased speed of delivery significantly. To put this in perspective, over the last 18 months, we've reduced our delivery lead times approximately 45% in the U.S., which is leading to greater conversion with our customers. And now, approximately 55% of our big and bulky deliveries on products we stock are delivered within two days. Going forward, we will continue to further optimize fulfillment across all of our assets to better serve our customers and enhance the interconnected shopping experience. During the second quarter, we leaned into products and projects that are resonating with our customers. We focused on innovation, expanded assortments, and reduced friction points. all to deliver a compelling value proposition. For example, we continue to see tremendous success in power. In fact, Q2 was a record-setting sales quarter for portable power …
Home Depot received a net economic benefit of roughly 85 basis points to gross margin from tariff refunds, offsetting unplanned cost pressures from fuel, energy, and other inputs, showing management's ability to navigate a volatile cost environment strategically.