The world's largest home improvement retailer, Home Depot runs thousands of warehouse-style stores in the U.S., Canada, and Mexico selling lumber, tools, appliances, and garden supplies to do-it-yourselfers and professional contractors. Founded in 1978 by Bernie Marcus and Arthur Blank after they were fired from a rival hardware chain, the concept was sketched over coffee in Los Angeles. Its signature orange aprons trace back to the founders' use of discarded circus tents for early store signage.
Home Depot's Q2 FY2026 comparable sales rose 1.7% and EPS rose 4.6% to $4.79, aided by a $730M tariff refund.
rose 1.7% — the second straight quarterly gain after nine quarters of declines. rose 5.7% to $47.9B and rose 4.6% to $4.79, with about $685M of a $730M recognized in cost of goods sold and $1.4B from the acquisition. The quarter's profit lift came from a one-time refund, while the underlying business grew modestly.
Key takeaways
rose 1.7% in Q2 FY2026, up from 0.6% in Q1, on a 2.8% increase in average ticket partially offset by a 1.0% decline in customer transactions.
rose 5.7% to $47.9B, with $1.4B of incremental sales from the acquisition plus positive and new stores.
improved 0.3 points to 33.7%, reflecting IEEPA tariff refunds largely offset by fuel, energy, and other input cost pressures and inclusion.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 net sales rose 5.7% to $47.9B, with EPS up 4.6% to $4.79, aided by IEEPA tariff refunds and GMS acquisition.
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Q2 increased 5.7% to $47.9B, driven by $1.4B of incremental sales from the acquisition, positive , and new stores.
The company received approximately $730M in IEEPA tariff refunds in Q2, with about $685M recognized as a reduction of cost of goods sold — a one-time item that lifted and .
rose 8.5% to $8.4B, or 17.6% of sales, up from 17.1% a year earlier on higher operating costs relative to .
for the first six months was $11.4B, up $2.5B , driven by changes including vendor payment timing and management.
What changed
Q2 of 1.7% accelerated from Q1's 0.6% gain, answering the prior quarter's watch item on whether the positive trend would hold as lapped the year-ago base.
rebounded to 33.7% from Q1's 33.0%, but the improvement came from the $685M recognized in cost of goods sold rather than underlying .
fell to $44.0B from $44.8B in Q1, continuing the deleveraging path flagged in prior filings, with share repurchases still paused through fiscal 2026.
rose to $16.6B from $13.9B in Q1, up 55.8% , as the company continues to build equity while buybacks remain paused.
What to watch
Q3 FY2026 — whether the 1.7% Q2 gain holds or fades as laps the year-ago base and the tariff refund does not repeat.
in Q3 without the — whether the underlying 33.7% level is sustainable against fuel, energy, and input cost pressures.
trajectory after falling to $44.0B, and whether the company resumes share repurchases from the $11.7B authorization in fiscal 2027.
as a percentage of sales — whether the 17.6% level moderates as grow, or continues to rise on operating costs.
rose 1.7% in Q2 on a 2.8% increase in average ticket, partially offset by a 1.0% decline in customer transactions.
improved to 33.7% in Q2 from 33.4%, reflecting IEEPA tariff refunds largely offset by fuel, energy, and other input cost pressures and inclusion.
rose 8.5% to $8.4B in Q2, with SG&A as a percentage of up to 17.6% from 17.1% on higher operating costs relative to .
The company received approximately $730M in IEEPA tariff refunds in Q2, with about $685M recognized as a reduction of cost of goods sold.
was $11.4B for the first six months, up $2.5B , driven by changes including vendor payment timing and management.
The company plans approximately $4B in for fiscal 2026 and does not plan to resume share repurchases in fiscal 2026 as it reduces outstanding debt.
Quantitative and Qualitative Disclosures About Market Risk
Our exposure to market risk results primarily from fluctuations in interest rates in connection with our long-term debt portfolio. We are also exposed to risks from foreign currency exchange rate fluctuations on the translation of our foreign operations into U.S. dollars and on…
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Our exposure to market risk results primarily from fluctuations in interest rates in connection with our long-term debt portfolio. We are also exposed to risks from foreign currency exchange rate fluctuations on the translation of our foreign operations into U.S. dollars and on the purchase of goods by these foreign operations that are not denominated in their local currencies. Additionally, we may experience inflation and deflation related to our purchase and sale of certain commodity products. During the first six months of fiscal 2026, there were no material changes to our market risks from those disclosed in the 2025 Form 10-K.
In addition to the information set forth in this report, you should carefully consider the factors discussed under Part I, Item 1A. “Risk Factors” and elsewhere in the 2025 Form 10-K. These risks and uncertainties could materially and adversely affect our business, consolidated…
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In addition to the information set forth in this report, you should carefully consider the factors discussed under Part I, Item 1A. “Risk Factors” and elsewhere in the 2025 Form 10-K. These risks and uncertainties could materially and adversely affect our business, consolidated financial condition, results of operations, or cash flows. Our operations could also be affected by additional factors that are not presently known to us or by factors that we currently do not consider material to our business. There have been no material changes in the risk factors discussed in the 2025 Form 10-K.