Home Depot delivered a strong Q2 2026 with 5.7% revenue growth and solid digital sales momentum, but remains rangebound. Despite outperforming Q2 results, I maintain a Hold rating on HD due to persistent macroeconomic headwinds and valuation premium over Lowe's. HD's forward guidance projects 2.5%-4.5% sales growth and 2% diluted EPS growth, but rising OpEx and uncertain consumer trends temper enthusiasm.
Home Depot (NYSE:HD | HD Price Prediction) delivered a quarter that changes the conversation.
Home Depot's sales improved during its second quarter as customers focused on smaller projects during the summer months with the U.S. housing sector still mired in a slump.Revenue increased to $47.86 billion from $45.28 billion, edging out the $47.24 billion that Wall Street had expected, according to a survey by FactSet.Globally, sales at stores open at least a year, a key indicator of a retailer's health, climbed 1.7%. In the U.S., comparable store sales rose 1.3%.
Housing Starts Come in Below Expectations.
Home Depot (HD) shares are inching higher on Tuesday morning after the retailer posted market-beating financials for its second quarter. The home improvement retailer recorded $4.92 a share of earnings (EPS) on $47.86 billion in sales – beating consensus estimates set at $4.73 per share and $47.23 billion respectively.
Home Depot beat Wall Street estimates with its latest quarterly results and held its full-year outlook steady, amid what executives called a “frozen” housing market.
Housing Starts, Building Permits, Imports and Exports came in light of expectations this morning.
Home Depot's NYSE: HD stock price signaled a trend-following entry earlier this year, having completed a head-and-shoulders reversal at a critical uptrend line.
Home Depot posted higher second-quarter sales as smaller home projects supported demand despite elevated mortgage rates and costly housing.
Home Depot NYSE: HD reported second-quarter fiscal 2026 sales growth and comparable-sales gains that exceeded its expectations, as demand broadened across much of the business despite continued pressure on larger discretionary home-improvement projects.
HD's Q2 sales and adjusted EPS beat estimates as higher average ticket and gross margin gains offset softer transaction volumes.
Look one level beneath the comp and the picture gets more complicated.