Home Depot’s second quarter (ended August 2, 2026) came in ahead of expectations. Sales, comps and earnings all sped up from Q1. Even with tariff pressure still in the mix, the company left full-year guidance where it was instead of raising it. That’s a company that likes its trajectory but isn’t ready to call the year early.
The Numbers
- Total sales: $47.9B, up 5.7% year over year
- Comparable sales: up 1.7% overall, up 1.3% in the U.S.
- Net earnings: $4.8B, or $4.79 per diluted share (vs. $4.58 in Q2 FY2025)
- Adjusted diluted EPS: $4.92 (vs. $4.68 last year)
- Comparable transactions: down 1.0%
- Comparable average ticket: up 2.8% to $92.50
- Online comp sales: up double digits for the fifth straight quarter
- Store count: 2,364 retail stores plus 1,340+ SRS locations
Image by https://ir.homedepot.com/financial-reports/quarterly-earnings/2026
What’s Behind It
CFO Richard McPhail said the quarter beat expectations and credited broad demand as customers keep taking on smaller projects. He pointed to the company’s focus on the core business, a frictionless connected experience and winning the Pro.
A few things stood out:
- Online keeps compounding. Five straight quarters of double-digit online comp growth, and now more than 65% of in-stock product deliveries arrive same-day or next-day. Speed is becoming as much a part of the story as the product itself, and the expanded rollout of Magic Apron in stores backs that up.
- Traffic’s still soft, but ticket is picking up the slack. Transactions were down 1.0%, ticket was up 2.8%. That’s a wider gap than Q1’s 1.3%/2.2%. Shoppers are still picky about when they show up, but they’re spending more once they’re there.
- Comps accelerated. Total company comps ran 0.6% in Q1 and jumped to 1.7% in Q2. U.S. comps followed the same path, up from 0.4% to 1.3%. That’s a clear step up from earlier in the year and a stronger read on demand than the “in line with expectations” tone Home Depot used last quarter.
- Guidance held steady. No raise despite the beat. Home Depot is still expecting total sales growth of 2.5% to 4.5% and comps of flat to 2.0% for the year, with IEEPA tariff refunds expected to help offset input cost pressure the rest of the year.
What it Means for Brands
Put the accelerating comps next to the hold-steady guidance, and three things stand out for suppliers heading into the back half of the year:
- Speed is now part of the earnings story. Five quarters of double-digit online growth and same-day/next-day shipping on most parcels mean fulfillment isn’t a back-office detail anymore, it’s showing up in how Home Depot talks about its business. If you haven’t checked how clearly your delivery promise shows up on your product page lately, now’s the time.
- Small projects are still driving the spend. Customers aren’t chasing big-ticket purchases right now. Brands with approachable products and easy-to-follow content win that spend. Sharpen the content that helps someone start a project and make sure the companion items are easy to find.
- Bigger baskets are the play while traffic stays soft. Transactions are still negative, but ticket keeps climbing. Bundles, companion item suggestions and compatibility info help brands grow basket size even without more people walking in.
Porchlight’s Take
Sales and comps are accelerating, guidance held and shoppers are still being deliberate. Home Depot could’ve raised guidance after a beat like this and didn’t, which tells you they like the trend but aren’t ready to get ahead of it.
For brands, we’d point to two things that move the needle right now: strong A+ content online and a clear shipping message. Shoppers are converting with less foot traffic, so the product page has to do more of the selling, and it needs to answer the delivery question before the shopper has to ask it. Get those two right, and you’re set up to win the back half of the year the same way Home Depot is playing it: confident, not overextended.