Home Depot reported second-quarter results that beat analyst expectations on both revenue and earnings Tuesday, though the company kept its full-year guidance unchanged rather than raising it. The Atlanta-based home improvement retailer recorded adjusted diluted earnings per share of $4.92, an improvement over the $4.68 it reported in the year-ago period. Analysts had expected adjusted EPS of $4.73, according to CNBC.
Revenue reached $47.86 billion, a 5.7% increase from the prior-year quarter. Analysts had forecast revenue of $47.27 billion, according to CNBC. Home Depot's quarterly net income totaled $4.77 billion, translating to $4.79 per diluted share; in the same quarter last year, the figures were $4.55 billion and $4.58 per diluted share.
Comparable sales rose 1.7% globally, with U.S. comparable sales up 1.3%. Customer transactions fell 1% while the average ticket rose to $92.50 from $90.01 a year earlier. "Our second quarter results exceeded our expectations.
We saw broad based demand across the business as customers continued to engage in smaller projects," Executive Vice President and CFO Richard McPhail said in a statement. McPhail said that the stronger-than-expected results stemmed from share gains with both professional and do-it-yourself customers, while widespread market uncertainty pushed the company toward reaffirming its outlook instead of lifting it. He described the housing market as "frozen" and said customers have the means to spend but remain hesitant about larger projects.
"They've told us they have the means to spend, they're just hesitant," he said. Home Depot left its fiscal 2026 targets intact, maintaining its forecast for total sales to grow between 2.5% and 4.5% and for comparable sales to land somewhere between flat and up 2%. The company said it expects diluted EPS to grow flat to 4% from $14.23 in fiscal 2025.
According to the company, the guidance factors in tariff refunds, which it said would help cushion the impact of elevated costs for fuel, energy, and other product inputs. Home Depot noted that comparable sales in the second quarter were the highest since the third fiscal quarter of 2022. The results came as the company is operating without its top executive.
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