Earnings release
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Aug 18, 2026 ATLANTA, Aug. 18, 2026 /PRNewswire/ -- The Home Depot, the world's largest home improvement retailer, today reported sales of $47.9 billion for the second quarter of fiscal 2026, an increase of $2.6 billion, or 5.7% from the second quarter of fiscal 2025. Comparable sales for the second quarter of fiscal 2026 increased 1.7%, and comparable sales in the U.S. increased 1.3%. Net earnings for the second quarter of fiscal 2026 were $4.8 billion, or $4.79 per diluted share, compared with net earnings of $4.6 billion, or $4.58 per diluted share, in the same period of fiscal 2025. Adjusted diluted earnings per share for the second quarter of fiscal 2026 were $4.92, compared with adjusted diluted earnings per share of $4.68 in the same period THE HOME DEPOT ANNOUNCESSECOND QUARTER FISCAL 2026RESULTS; REAFFIRMS FISCAL 2026GUIDANCE ® (1) Page 1 of 12
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of fiscal 2025. "Our second quarter results exceeded our expectations. We saw broad based demand across the business as customers continued to engage in smaller projects," said Richard McPhail, Executive Vice President and Chief Financial Officer. "This quarter's results were a testament to our investments across the business and our associates' focus on customer service. Our teams did an exceptional job executing throughout a dynamic environment, and I would like to thank them for their continued hard work and dedication," said Ann-Marie Campbell, Senior Executive Vice President. Fiscal 2026 Guidance The Company reaffirms its fiscal 2026 guidance. Guidance includes IEEPA tariff refunds, which are expected to partially offset unplanned fuel, energy, and other product input costs throughout the fiscal year. (1) The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). As used in this earnings release, adjusted operating income, adjusted operating margin, and adjusted diluted earnings per share are non-GAAP financial measures. Refer to the end of this release for an explanation of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. The Home Depot will conduct a conference call today at 9 a.m. ET to discuss information included in this news release and related matters. The conference call will be available in its entirety through a webcast and replay at ir.homedepot.com/events- and-presentations. Total sales growth of approximately 2.5% to 4.5%- Comparable sales growth of approximately flat to 2.0%- Approximately 15 new stores- Gross margin of approximately 33.1%- Operating margin of approximately 12.4% to 12.6%- Adjusted operating margin of approximately 12.8% to 13.0%- (1) Effective tax rate of approximately 24.3%- Net interest expense of approximately $2.3 billion- Diluted earnings-per-share to grow approximately flat to 4.0% from $14.23 in fiscal 2025 - Adjusted diluted earnings-per-share to grow approximately flat to 4.0% from $14.69 in fiscal 2025 - (1) Capital expenditures of approximately 2.5% of total sales- Page 2 of 12
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At the end of the second quarter, the company operated a total of 2,364 retail stores and over 1,340 SRS locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs over 470,000 associates. The Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor's 500 index. Cautionary Note Regarding Forward-Looking Statements Certain statements contained herein constitute "forward-looking statements" under the federal securities laws, including as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on currently available information and our current assumptions, expectations and projections about future events, and use words such as "may," "will," "could," "should," "would," "anticipate," "intend," "estimate," "project," "plan," "believe," "expect," "target," "prospects," "potential," "commit" and "forecast," or words of similar import or meaning or refer to future time periods. Forward-looking statements may relate to, among other things: our brand and reputation; the demand for our products and services, including as a result of macroeconomic conditions and changing customer preferences and expectations; net sales growth; comparable sales; the effects of competition; implementation of interconnected, store, supply chain, technology, innovation and other strategic initiatives, including with respect to real estate; inventory, on-shelf availability, and in-stock positions; the state of the economy; the state of the housing and home improvement markets; the state of the credit markets, including mortgages, home equity loans, and consumer and trade credit; the impact of tariffs; trade policy changes or restrictions, or international trade disputes and efforts and ability to continue to diversify our supply chain; issues related to the payment methods we accept; demand for credit offerings including trade credit; management of relationships with our associates, jobseekers, suppliers and service providers; cost and availability of labor; costs of fuel and other energy sources; events that could disrupt our business, supply chain, technology infrastructure, or demand for our products and services, such as tariffs, trade policy changes or restrictions or international trade disputes, natural disasters, climate change, public health issues, cybersecurity events, and labor disputes; geopolitical tensions or conflicts, military conflicts, or acts of war; our ability to maintain a safe and secure store environment; our ability to address expectations regarding sustainability and human capital management matters and meet related goals; continuation or suspension of share repurchases; net earnings and margin performance; earnings per share; future dividends; capital allocation and expenditures; productivity;liquidity; return on invested capital; expense and debt leverage; changes in interest rates; changes in foreign currency exchange rates; commodity or other price inflation and deflation; our ability to issue debt on terms and at rates acceptable to us; the impact and expected outcome of investigations, inquiries, claims, and litigation; the timing and expected impact of organizational changes, including within the Company's senior leadership team;the challenges of operating in international markets; the adequacy of insurance coverage; the effect of accounting charges; the effect of adopting certain accounting Page 3 of 12
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standards; the impact of legal and regulatory changes, including executive orders and other administrative or legislative actions, such as changes to tax laws and regulations; store openings and closures; financial outlook, including guidance for fiscal 2026; and the impact of acquired companies, including SRS and GMS, on our organization and the ability to recognize the anticipated benefits of completed or pending acquisitions. These statements are not guarantees of future performance and are subject to future events, risks and uncertainties – many of which are beyond our control, dependent on the actions of third parties, or currently unknown to us – as well as potentially inaccurate assumptions that could cause actual results to differ materially from our historical experience and our expectations and projections. These risks and uncertainties include, but are not limited to, those described in Part I, Item 1A. "Risk Factors," and elsewhere in our Annual Report on Form 10-K for our fiscal year ended February 1, 2026 and also as described from time to time in reports subsequently filed with the Securities and Exchange Commission. There also may be other factors that we cannot anticipate or that are not described herein, generally because we do not currently perceive them to be material. Such factors could cause results to differ materially from our expectations. Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our filings with the Securities and Exchange Commission and in our other public statements. Non-GAAP Financial Measures To provide additional transparency, we supplement our disclosure with certain non- GAAP financial measures. When used in conjunction with our GAAP financial measures, we believe these supplemental non-GAAP financial measures will help management and investors to better understand and analyze our performance. However, this supplemental information should not be considered in isolation or as a substitute for the related GAAP measures. Refer to the end of this release for an explanation and definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. CONDENSED CONSOLIDATED STATEMENTS OF EARN (Unaudited) Three Months Ended in millions, except per share data August 2, 2026 August 3, 2025 % Change A Page 4 of 12
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Net sales $ 47,861 $ 45,277 5.7 % Cost of sales 31,746 30,152 5.3 Gross profit 16,115 15,125 6.5 Operating expenses: Selling, general and administrative 8,424 7,764 8.5 Depreciation and amortization 852 806 5.7 Total operating expenses 9,276 8,570 8.2 Operating income 6,839 6,555 4.3 Interest and other (income) expense: Interest income and other, net (59) (25) N/M Interest expense 583 575 1.4 Interest and other, net 524 550 (4.7) Earnings before provision for income taxes6,315 6,005 5.2 Provision for income taxes 1,549 1,454 6.5 Net earnings $ 4,766 $ 4,551 4.7 % Basic weighted average common shares 994 992 0.2 % Basic earnings per share $ 4.79 $ 4.59 4.4 Diluted weighted average common shares 996 994 0.2 % Diluted earnings per share $ 4.79 $ 4.58 4.6 Page 5 of 12
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Three Months Ended Selected sales data: August 2, 2026 August 3, 2025 % Change A Comparable sales (% change) 1.7 % 1.0 % N/A Comparable customer transactions (% change) (1.0) % (0.4) % N/A Comparable average ticket (% change) 2.8 % 1.4 % N/A Customer transactions (in millions) 443.2 446.8 (0.8) % Average ticket $ 92.50 $ 90.01 2.8 (1) Customer transactions and average ticket measures do not include results from HD Supply or SRS. THE HOME DEPOT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) in millions August 2, 2026 August 3, 2025 February 1, 2026 Assets Current assets: Cash and cash equivalents $ 2,085$ 2,804 $ 1,389 (1) (1) (1) (1) Page 6 of 12
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Receivables, net 6,963 5,878 5,597 Merchandise inventories 26,847 24,843 25,817 Other current assets 1,825 1,866 1,588 Total current assets 37,720 35,391 34,391 Net property and equipment 28,147 26,896 28,021 Operating lease right-of-use assets 9,300 8,662 9,204 Goodwill 22,899 19,619 22,344 Intangible assets, net 10,482 8,770 10,329 Other assets 836 711 806 Total assets $ 109,384$ 100,049$ 105,095 Liabilities and Stockholders' Equity Current liabilities: Short-term debt $ 4,248$ — $ 4,464 Accounts payable 13,585 13,086 11,491 Accrued salaries and related expenses 2,471 2,385 2,529 Current installments of long-term debt 4,697 6,400 4,967 Current operating lease liabilities 1,516 1,336 1,418 Other current liabilities 8,471 7,639 7,555 Total current liabilities 34,988 30,846 32,424 Long-term debt, excluding current installments43,951 45,917 46,341 Page 7 of 12
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Long-term operating lease liabilities 8,155 7,668 8,160 Other long-term liabilities 5,673 4,953 5,357 Total liabilities 92,767 89,384 92,282 Total stockholders' equity 16,617 10,665 12,813 Total liabilities and stockholders' equity$ 109,384$ 100,049$ 105,095 THE HOME DEPOT, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months End in millions August 2, 2026 Augu 20 Cash Flows from Operating Activities: Net earnings $ 8,055$ Reconciliation of net earnings to net cash provided by operating activities: Depreciation and amortization, excluding amortization of intangible assets1,839 Intangible asset amortization 349 Stock-based compensation expense 326 Changes in working capital 570 ( Changes in deferred income taxes 58 Other operating activities 225 Page 8 of 12
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Net cash provided by operating activities 11,422 Cash Flows from Investing Activities: Capital expenditures (1,724) ( Payments for businesses acquired, net (1,333) Other investing activities 46 Net cash used in investing activities (3,011) ( Cash Flows from Financing Activities: Repayments of short-term debt, net (216) Proceeds from long-term debt 122 Repayments of long-term debt (3,040) ( Proceeds from sales of common stock 192 Cash dividends (4,643) ( Other financing activities (116) Net cash used in financing activities (7,701) ( Change in cash and cash equivalents 710 Effect of exchange rate changes on cash and cash equivalents (14) Cash and cash equivalents at beginning of period 1,389 Cash and cash equivalents at end of period $ 2,085$ NON-GAAP FINANCIAL MEASURES Page 9 of 12
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Adjusted operating income, adjusted operating margin, and adjusted diluted earnings per share are presented as supplemental financial measures in the evaluation of our business that are not required by or presented in accordance with GAAP. The Company excludes the impact of amortization expense from acquired intangible assets from adjusted operating income and adjusted operating margin, and the impact of amortization expense from acquired intangible assets, including the related tax effects, from adjusted diluted earnings per share. We do not adjust for the revenue that is generated in part from the use of our acquired intangible assets. Amortization expense, unlike the related revenue, is not affected by operations in any particular period unless an intangible asset becomes impaired, or the useful life of an intangible asset is revised. When used in conjunction with our GAAP results, we believe these non-GAAP measures provide investors with meaningful supplemental measures of our performance period to period, make it easier for investors to compare our underlying business performance to peers, and align to how management analyzes trends and evaluates performance internally. The Company provides non-GAAP financial information on this basis to facilitate comparability when we report earnings results. These non-GAAP measures should not be considered in isolation or as a substitute for their comparable GAAP financial measures. Investors should rely primarily on our GAAP results and use non-GAAP financial measures only supplementally in making investment decisions. Our calculation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies and other companies may not define these non-GAAP financial measures in the same way, which may limit their usefulness as comparative measures. RECONCILIATION OF ADJUSTED OPERATING INCOME AND ADJUSTED Three Months Ended USD in millions August 2, 2026 August 3, 2025 % Change Au Operating income (GAAP) $ 6,839 $ 6,555 4.3 % $ Operating margin 14.3 % 14.5 % Acquired intangible asset amortization 178 139 Adjusted operating income (Non-GAAP)$ 7,017 $ 6,694 4.8 % $ (1) (2) Page 10 of 12
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Adjusted operating margin (Non-GAAP) 14.7 % 14.8 % (1)Operating margin is calculated as operating income divided by total net sales. (2)Amounts include acquired intangible asset amortization of $125 million and $244 million during the three and six months ended August 2, 2026, respectively, and $87 million and $174 million during the three and six months ended August 3, 2025, respectively, related to SRS Distribution, Inc., and its subsidiaries. (3)Adjusted operating margin is calculated as adjusted operating income divided by total net sales. Our adjusted operating margin guidance for fiscal 2026 excludes an expected approximately 40 basis point impact from acquired intangible asset amortization. RECONCILIATION OF ADJUSTED DILUTED EARNINGS PE Three Months Ended per share amounts August 2, 2026 August 3, 2025 % Change Au Diluted earnings per share (GAAP) $ 4.79 $ 4.58 4.6 % $ Impact of acquired intangible asset amortization0.18 0.14 Income tax impact of non-GAAP adjustment (0.05) (0.04) Adjusted diluted earnings per share (Non-GAAP)$ 4.92 $ 4.68 5.1 % $ (3) (1) Page 11 of 12
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(1)Calculated as the per share impact of acquired intangible asset amortization multiplied by the Company's effective tax rate for the period. Our adjusted diluted earnings per share guidance for fiscal 2026 excludes an expected after-tax impact of approximately $0.50 from acquired intangible asset amortization. View original content to download multimedia:https://www.prnewswire.com/news- releases/the-home-depot-announces-second-quarter-fiscal-2026-results-reaffirms- fiscal-2026-guidance-302853312.html SOURCE The Home Depot Page 12 of 12