Home Depot reaffirms guidance amid 'frozen housing market conditions'
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- Home Depot posted fiscal Q2 adjusted EPS of $4.92 against the $4.73 expected and revenue of $47.86 billion versus the $47.27 billion estimate, beating on both lines.
- Comparable sales rose 1.7%, beating the 0.9% StreetAccount estimate and marking the retailer's strongest comp performance since the third fiscal quarter of 2022.
- CFO Richard McPhail called current conditions a "frozen housing market" but said Home Depot is taking share with both pro and DIY customers and seeing "broad engagement" across categories.
- McPhail said the customer is "a healthy cohort" with the means to spend but is hesitant on bigger projects due to worries about inflation, fuel costs, and general uncertainty.
- Home Depot reaffirmed fiscal 2026 guidance for total sales growth of 2.5%–4.5% and operating margin of 12.4%–12.6%, with tariff refunds expected to "partially offset unplanned fuel, energy, and other product input costs."
- CEO Ted Decker is taking a "temporary medical leave of absence" for a few months; Ann-Marie Campbell will run day-to-day operations while McPhail oversees financial management and the pro business.
- McPhail framed the quarter as "a story of share gain" and said Home Depot will keep investing despite the frozen housing environment because long-run home improvement demand remains strong.
Why it matters: Home Depot's 1.7% comparable sales beat — the strongest since Q3 2022 — alongside reaffirmed guidance shows the retailer is gaining share even as consumers defer big-ticket projects over inflation and fuel concerns. With CEO Ted Decker on temporary medical leave and tariff refunds cushioning margins, management execution is carrying the quarter more than any macro relief.
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