Home Depot reported strong fiscal second-quarter results, exceeding Wall Street’s expectations for both earnings per share and revenue. The company posted adjusted earnings of $4.92 per share versus the anticipated $4.73, while revenue reached $47.86 billion, surpassing estimates of $47.27 billion. Comparable sales grew by 1.7%, marking the highest increase since the third quarter of 2022, signaling solid engagement across the company’s product categories and customer segments.

Despite the positive results, Home Depot’s CFO Richard McPhail described the current environment as “frozen housing market conditions,” reflecting the challenges created by low housing turnover, elevated mortgage rates, and economic uncertainty, factors that have made consumers cautious about undertaking large home projects. Nevertheless, McPhail emphasized the company’s successful market share gains and customer service improvements, with both professional contractors and do-it-yourself customers maintaining broad engagement.

Home Depot reaffirmed its full fiscal-year 2026 guidance, expecting sales growth between 2.5% and 4.5% and operating margins in the range of 12.4% to 12.6%. The company highlighted the beneficial impact of $730 million in tariff refunds received in the second quarter, which have helped offset rising fuel, energy, and product input costs. Of these refunds, $685 million were applied to reduce cost of goods sold, while the remainder contributed to inventory value, aiding Home Depot’s ability to maintain competitive pricing despite inflationary pressures.

Adding to the company’s operational context, CEO Ted Decker recently announced a temporary medical leave, with Ann-Marie Campbell stepping in to oversee U.S. store and operations, while McPhail takes charge of financial management and the pro business segment. Overall, Home Depot remains confident in its long-term strategy, continuing investments during this uncertain period to capture demand in the home improvement market once broader economic conditions improve.