HD

The Home Depot, Inc.

Next est. report 2026-11-17 · BMO

Archetypes '24: American EverymanBuying a House '24: Home Services Buying a House '26: Home Improvement Retailers Climate Adaptation '26: Americans Beating the Heat Global Home Improvement '26: U.S. & Canada Home Improvement HaveNots Longs '25: Mass Market Home & Auto Homebuilding '26: Home Improvement, Installers & Distribution Natural Disasters Long '24: Home Improvement & BuildingSmall Themes '26: Housing TurnoverTrump Grift Era '25: Trump-aligned ExecsTrumpPolicy PreElection Long '24: Trump Supporter

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Overview

The Home Depot, Inc. is the world's largest home improvement retailer, providing building materials, tools, and garden products. It serves both DIY homeowners a

The Home Depot, Inc. is the world's largest home improvement retailer, providing building materials, tools, and garden products. It serves both DIY homeowners and professional contractors, with roughly 50% of revenue from each. The company expands its Pro offerings via wholesale distribution acquisitions like SRS, GMS, and Mingledorff's, operating 2,364 stores and digital platforms with new express delivery options.

Search Keywords Brand Product

Magic Apron
Express Delivery
Milwaukee PACKOUT
USG ultralight tough gypsum panels
RUCO joint treatments
QuoteCenter
Pro Digital Workspace
home improvement market
Pro segment growth
DIY customer trends
omnichannel retail
online sales
delivery services
tariff impacts
housing market conditions
big ticket projects
HVAC distribution

Search Keywords Event Phrases

Home Depot Q2 earnings 2026
Home Depot guidance 2026

Search Keywords Policy Regulatory

IEEPA tariff refunds
Section 301 tariffs

What They Do (Plain English & Analogies): The Home Depot is like a giant hardware store and building supply center all rolled into one. They sell almost everything you need to build, fix, or decorate your home or property, from lumber and tools to paint, appliances, and garden supplies. They serve two main types of customers: everyday homeowners doing small projects themselves (DIYers) and professional contractors, like builders or remodelers, who need larger quantities of specialized materials for bigger jobs. Beyond just selling products in their stores and online, they also offer services like professional installation for things such as new floors or air conditioning systems, and you can rent tools and equipment. Increasingly, they are also a major supplier to large professional contractors through a network of specialized wholesale distributors, delivering materials directly to job sites. The company is focused on enhancing the in-store experience with technology like 'Magic Apron' for product navigation and project questions, and offers fast delivery options, including 'Express Delivery nationwide with delivery on tens of thousands of products in 3 hours or less'.
Very Brief History: Founded in 1978 in Atlanta by Bernie Marcus and Arthur Blank, The Home Depot pioneered the big-box home improvement warehouse concept. After going public in 1981, it rapidly expanded to become the world's largest home improvement retailer. In recent years, the company has strategically shifted to an "interconnected" retail approach and significantly expanded its focus on the professional contractor market through major acquisitions like SRS Distribution in 2024, GMS Inc. in 2025, and Mingledorff's in 2026.
"Street Stereotype": The Home Depot is widely regarded as the "Gold Standard" in retail execution and a key indicator for the health of the U.S. housing market. Investors generally perceive it as a high-quality, efficiently managed company, often seen as superior to its main rival, Lowe's, particularly in its ability to attract and serve the high-spending Professional customer. However, it is currently viewed as being in a "transition" phase as it integrates lower-margin wholesale acquisitions.
Subsidiaries On Linked In*: SRS Distribution — Acquired by Home Depot in 2024, now a key professional division.; LinkedIn: srs-distribution
GMS Inc. — Acquired by SRS Distribution (a Home Depot subsidiary) in 2025, specializing in interior building materials.; LinkedIn: gmsinc
HD Supply — A wholesale distributor of MRO products.; LinkedIn: hd-supply
Blinds.com — Online retailer for custom window coverings.; LinkedIn: blinds-com
The Company Store — Retailer of home textiles and decorative goods.; LinkedIn: the-company-store
Mingledorff's, LLC — Wholesale distributor of HVAC equipment, parts, and supplies, acquired by SRS Distribution in Q1 2026.; LinkedIn: mingledorffs-llc
Customer Sectors & Example Clients: The Home Depot serves two primary customer sectors: DIY (Do-It-Yourself homeowners) and Pros (Professional contractors). Pro customers include renovators/remodelers, general contractors, maintenance professionals, handymen, property managers, building service contractors, and specialty tradesmen such as electricians, plumbers, and painters. Specific examples of larger clients mentioned or inferred include large property management firms (e.g., Greystar, Equity Residential), national homebuilders (e.g., Lennar, D.R. Horton), and multifamily construction companies, as well as local independent general contractors. The company specifically noted strong performance across all its Pro cohorts, including homebuilders, commercial customers, and remodelers.
New Customers / Segments They'Re Targeting: The Home Depot is strategically expanding its 'Complex Pro' market presence, aiming to win with professional customers by offering specialized services and product assortments. This includes leveraging acquisitions like SRS Distribution and GMS Inc. to serve homebuilders, commercial customers, and remodelers across various verticals. The acquisition of Mingledorff's, an HVAC distributor, specifically targets the national HVAC parts and supplies market, which represents an addressable market of approximately $100 billion.
Supply Chain And Sourcing Geographies: The Home Depot's supply chain is designed to support both its retail stores and its growing professional distribution network, including a fleet of approximately 16,000 delivery assets and over 325 customer-facing warehouses. The company emphasizes a proprietary model that leverages all assets for faster delivery, including shipping from the best location, which has led to significant growth in deliveries from stores. Over 50% of its projects are sourced domestically. For in-stock parcel products, over 65% of deliveries are same-day or next-day. They have launched Express Delivery nationwide, offering delivery on tens of thousands of products in 3 hours or less, with the majority happening in under an hour. For big and bulky products, delivery lead times have been reduced by approximately 45% in the U.S. over the last 18 months, with about 55% delivered within 2 days. The acquisition of Mingledorff's adds a robust distribution network for HVAC equipment, parts, and supplies, primarily serving 42 locations in five states across the Southeastern United States. While other exact sourcing geographies are not specified, the company works with a diverse set of suppliers globally, with no single supplier accounting for more than 10% of inventory.
Sales Geographies And Expansion Plans: The Home Depot operates 2,364 stores across the United States, Canada, and Mexico as of the second quarter of 2026. In Q2 2026, both Mexico and Canada posted positive comparable sales, outperforming the company average. For fiscal 2026, the company plans to open approximately 15 new stores and 40 to 50 new SRS branches.
How Key Themes May Help/Hurt: The Home Depot's business model is significantly impacted by the 'Global Home Improvement '26: U.S. & Canada Home Improvement' theme. The **aging U.S. housing stock and a significant cumulative underspend in home repair and remodeling** create a robust, long-term structural demand catalyst for essential maintenance and renovation projects, which is a bullish tailwind for HD. The company's **strategic shift towards the professional (Pro) contractor segment**, supported by acquisitions like SRS, GMS, and Mingledorff's, aligns with the theme's bullish point on capturing higher-value, less discretionary projects, enhancing resilience against DIY consumer volatility. Furthermore, HD's **accelerated adoption and investment in AI-powered tools** (e.g., Magic Apron, Material List Builder) and **omnichannel fulfillment strategies** (e.g., Express Delivery, ship from best location) are enhancing customer experience, improving operational efficiencies, and driving digital sales growth, creating a competitive advantage and supporting market share gains. However, **persistent macroeconomic headwinds**, including elevated interest rates, high home prices, and historically low housing turnover, continue to suppress big-ticket discretionary DIY projects and overall housing-related demand, hurting HD's sales in larger projects. **Margin dilution from strategic acquisitions** like GMS and Mingledorff's, which operate with typically lower wholesale profitability, structurally pressures HD's overall gross margin. Additionally, **ongoing cost pressures** from fuel, energy, other product input costs (like commodities), and new tariffs create headwinds for overall profitability.

3 Main Long-Term Bull Details

Dominance in the 'Pro Ecosystem' with Strategic Acquisitions: The integration of SRS Distribution, GMS Inc., and Mingledorff's significantly expands Home Depot's reach into the professional wholesale market, particularly for specialized materials like roofing, drywall, and HVAC. This creates a unique 'one-stop shop' for complex projects, fostering high-value cross-selling opportunities and account handoffs that are less susceptible to DIY consumer volatility. SRS continues to outperform the broader roofing market, suggesting significant share gains even in a pressured environment, with a projected $400 million cross-sell run rate for fiscal 2026, expected to double next year.
Technological Moat and Interconnected Experience: Home Depot is leveraging advanced technology, including AI-powered project planning tools, material list builders, and real-time delivery tracking within its Pro Digital Workspace, to simplify complex material estimates and enhance efficiency for Pros. Coupled with a high-speed supply chain that supports strong online sales growth (11% in Q2 2026) and record-high customer satisfaction for deliveries, these innovations improve customer loyalty, operational efficiency, and overall customer satisfaction.
Structural Demand from Aging Housing Stock and Pent-Up Repairs: The median age of U.S. homes is over 40 years, leading to a substantial 'cumulative underspend' in home repair and remodeling. This creates a powerful, long-term demand catalyst for essential maintenance and renovation, which is expected to unlock as housing market pressures (like high interest rates and low turnover) eventually stabilize. Home Depot's core customer remains remarkably resilient, supported by healthy home equity and improved portfolios. Pro sales outperformed DIY in Q2, indicating continued strength in this high-value segment.

3 Main Long-Term Bear Details

Persistent Housing Market Headwinds: High mortgage rates and historically low housing turnover continue to suppress large-scale discretionary renovation projects and overall home improvement demand. Consumer uncertainty and affordability concerns are delaying major renovations, leading to a muted demand environment. Management does not anticipate a marked improvement in underlying demand, expecting a recovery in large projects to be further delayed.
Margin Dilution from Wholesale Acquisitions and Cost Pressures: The strategic shift towards a wholesale-heavy model through acquisitions like GMS and Mingledorff's structurally dilutes Home Depot's gross margin, as wholesale operations typically have lower profitability. This, combined with unplanned and rising cost pressures from fuel, energy, other product input costs (like resin and metals), and new tariffs, creates ongoing headwinds for overall profitability.
Consumer Uncertainty and Project Deferrals: Ongoing consumer uncertainty regarding the general economy, inflation, and job security continues to pressure discretionary spending, particularly for larger projects. While Home Depot aims for modest price increases, there's a risk of higher price elasticity if consumers become more value-conscious, potentially leading to weaker transaction volumes or a shift to lower-priced items.

Competitors And Differentiation: The Home Depot's primary competitor in the home improvement retail space is Lowe's. The company differentiates itself by focusing on "driving our core and culture, delivering a frictionless interconnected experience and winning the Pro." They believe they are "uniquely positioned with capabilities that are not easy to replicate." This includes continuous investment in the store experience, ensuring high on-shelf availability, introducing new and innovative products, and deploying technology like 'Magic Apron' to enhance customer and associate experience. They also emphasize speed of delivery, with initiatives like same-day, next-day, and Express Delivery. For professional customers, they are building a comprehensive ecosystem through investments in systems, capabilities, product assortment (including job lot quantities), delivery, sales teams, and specialized services, leveraging the combined product catalog of Home Depot, SRS, GMS, and Mingledorff's to create a unique and compelling offering.
Recent Performance & What The Market'S Focused On: In the second quarter of 2026, Home Depot reported total sales of $47.9 billion, an increase of 5.7% from the same period last year. Comparable sales increased 1.7%, with U.S. comps up 1.3%. Adjusted diluted earnings per share were $4.92, a 5.1% increase year-over-year. Online sales leveraging digital platforms increased 11%, and Pro sales posted positive comps, outperforming DIY. Gross margin was 33.7%, an increase of approximately 25 basis points, primarily driven by $685 million in IEEPA tariff refunds, largely offset by incremental cost pressures related to fuel, energy, other product input costs, and a change in mix due to the GMS acquisition. The company reaffirmed its fiscal 2026 guidance, expecting comp sales to range between flat to 2% growth and total sales growth between approximately 2.5% and 4.5%, with adjusted diluted EPS growth of flat to 4%. The market is focused on several key areas: the **underlying demand in the housing market** and any signs of an inflection point for larger discretionary projects, which remain under pressure due to high interest rates and low housing turnover. Analysts are closely scrutinizing the **gross margin trajectory**, particularly how the impact of tariff refunds, ongoing cost pressures (fuel, energy, commodities, new tariffs), and the mix shift from wholesale acquisitions (GMS, Mingledorff's) will affect profitability in the back half of 2026 and into 2027. The **strength of the Pro segment**, the effectiveness of the interconnected experience, and the realization of **cross-sell synergies** from acquisitions like SRS, GMS, and Mingledorff's are also key areas of focus. Additionally, the success and adoption of new technologies such as 'Magic Apron' and 'Express Delivery' in enhancing customer experience and driving engagement are being watched.

Revenue Segments And Estimated Mix: DIY (Do-It-Yourself) Customers — Mix: ~50%; Source: Existing knowledge, Q2 2026 transcript; Trend: Outperformed by Pro segment in Q2 2026
Pro (Professional Contractors) — Mix: ~50%; Source: Existing knowledge, Q2 2026 transcript; Trend: Posted positive comps and outperformed DIY in Q2 2026
SRS Distribution (Wholesale) — Mix: n/m; Source: Q2 2026 transcript; Trend: Comped above company average and positive in all verticals in Q2 2026
Product Brands: The Home Depot
homedepot.com
Blinds.com
The Company Store
RYOBI
Milwaukee
DEWALT
Makita
Ram Board
Bayer (paint partnership)
PPG (paint partnership)
One Paint
Mingledorff's (HVAC distributor)
Magic Apron
Express Delivery
Milwaukee PACKOUT
USG ultralight tough gypsum panels
RUCO joint treatments

Bull / Bear Details

The Home Depot continues to execute its 'Complex Pro' strategy, expanding its market presence and gaining significant share through acquisitions and enhanced ca

Thesis

The Home Depot continues to execute its 'Complex Pro' strategy, expanding its market presence and gaining significant share through acquisitions and enhanced capabilities. Q2 2026 results exceeded expectations with accelerated comps and EPS, driven by strong Pro performance and digital innovation. Despite persistent housing market pressures and cost headwinds, HD's resilient core customer, aging housing stock, and frictionless interconnected experience support its long-term growth trajectory. (August 19, 2026)

Bull case

Home Depot's 'Complex Pro' strategy is yielding strong results, with SRS Distribution outperforming the company average and gaining significant market share across all verticals. Cross-selling synergies are accelerating, evidenced by 90% of stores closing a sale through SRS via QuoteCenter. Exclusive partnerships with USG and RUCO further solidify HD's leadership in Pro-preferred building materials.
The company's frictionless interconnected experience continues to drive engagement, with online sales growing 11%. The nationwide launch of Express Delivery (3 hours or less, often under 1 hour) and enhanced next-day appliance delivery significantly improve speed and convenience. AI-powered tools like Magic Apron in aisles are boosting customer and associate confidence and satisfaction.
Despite macro headwinds, Home Depot's core customer remains engaged, reflected in Q2 results exceeding expectations and broad-based demand across 13 merchandising departments. Pro sales continue to outperform DIY, and big ticket transactions (over $1,000) saw positive 2.4% growth, demonstrating resilience in higher-value projects and ongoing structural demand from an aging housing stock.

Bear case

Persistent housing market pressures, including historically low housing turnover for four years and elevated mortgage rates, continue to suppress demand for large discretionary projects. Consumer uncertainty and affordability concerns are delaying major renovations, with management seeing no immediate signs of an inflection point in housing activity.
While Q2 gross margin saw a temporary benefit from tariff refunds, the underlying structural dilution from wholesale acquisitions like GMS persists. Furthermore, the company faces significant and unplanned cost pressures from rising fuel, energy, and commodity input costs, along with incremental new Section 301 tariffs, which are expected to fully offset tariff benefits over the year.
Despite Q2 results exceeding expectations with accelerated sales and EPS growth, comp transactions still decreased by 1%. The reaffirmation of fiscal 2026 guidance (flat to 2% comp sales, flat to 4% EPS growth) suggests management maintains a cautious outlook for the back half, acknowledging ongoing market volatility and significant unplanned cost pressures, raising concerns about sustained momentum.

Bull / Bear Case

Bear Case: Persistent housing market pressures, including historically low housing turnover for four years and elevated mortgage rates, continue to suppress demand for large discretionary projects, with management seeing no immediate signs of an inflection point in housing activity. While Q2 gross margin saw a temporary benefit from tariff refunds, the underlying structural dilution from wholesale acquisitions like GMS persists. Furthermore, the company faces significant and unplanned cost pressures from rising fuel, energy, and commodity input costs, along with incremental new Section 301 tariffs, which are expected to fully offset tariff benefits over the year. Despite Q2 results exceeding expectations, comparable transactions still decreased by 1%. The reaffirmation of a cautious fiscal 2026 guidance (flat to 2% comp sales, flat to 4% EPS growth) suggests ongoing market volatility and significant unplanned cost pressures, raising concerns about sustained momentum.
Bull Case: The Home Depot's 'Complex Pro' strategy is demonstrating strong results, with SRS Distribution outperforming the company average and gaining significant market share across all verticals. Cross-selling synergies are accelerating, evidenced by 90% of stores closing a sale through SRS via QuoteCenter, and exclusive partnerships with USG and RUCO are solidifying leadership in Pro-preferred building materials. The company's frictionless interconnected experience is driving engagement, with online sales growing 11% and the nationwide launch of Express Delivery (3 hours or less) significantly improving speed and convenience. AI-powered tools like Magic Apron are boosting customer and associate confidence. Despite macro headwinds, Q2 results exceeded expectations with broad-based demand across 13 merchandising departments, and Pro sales continue to outperform DIY, with big ticket transactions (over $1,000) seeing positive 2.4% growth, indicating resilience and ongoing structural demand from an aging housing stock.
More Compelling & Why: Bear. Home Depot typically trades at a premium P/E multiple, but this valuation is difficult to justify given the modest reaffirmed fiscal 2026 guidance (flat to 2% comp sales, flat to 4% EPS growth) and explicit management commentary about persistent macro headwinds, particularly the 'frozen housing conditions' and 'no sign of an inflection point' in housing turnover. My view would flip if there were clear signs of a sustained rebound in housing turnover (e.g., NAR Existing Home Sales consistently above 4.5 million annualized) coupled with a material and sustained decrease in 30-year fixed mortgage rates (e.g., below 6.0%), leading management to significantly raise its full-year guidance.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
U.S. Housing Turnover Rate & 30-Year Fixed Mortgage Rate	These macro factors are fundamental drivers of home improvement demand, particularly for large discretionary projects. An inflection point here would significantly boost demand, as housing turnover has been at historical lows for four years.	National Association of Realtors (NAR) Existing Home Sales data (annualized rate) and Freddie Mac Primary Mortgage Market Survey (PMMS) for the 30-year fixed mortgage rate. The most recent reported rate for existing home sales was 4.06 million (annualized) for July 2026, and the 30-year fixed mortgage rate was 6.67% as of August 13, 2026.	If NAR Existing Home Sales annualized rate shows a sustained upward trend above 4.06 million and Freddie Mac 30-year fixed mortgage rates fall below 6.0% and sustain = Bullish. If NAR Existing Home Sales annualized rate shows a declining trend below 4.06 million and Freddie Mac 30-year fixed mortgage rates sustain above 7.0% = Bearish.	NAR website (Existing Home Sales released monthly, typically around the 20th of the month for the prior month's data). Freddie Mac PMMS (released weekly, typically on Thursdays).	Google Trends: 'mortgage rates', 'existing home sales'	Mortgage Bankers Association (MBA): Weekly Mortgage Applications Survey (Purchase Index)
Total Company Comparable Sales Growth (Monthly Trend)	This is the most direct measure of overall business health and market share capture. Consistent acceleration in monthly comparable sales indicates strong execution and potential market inflection.	Monthly total company comparable sales growth. Q2 2026 saw May +1.2%, June +1.5%, and July +2.3%. Monitor the trend in subsequent months.	If monthly total company comparable sales continue to accelerate above +2.3% = Bullish. If monthly total company comparable sales decelerate below +1.5% = Bearish.	Company earnings calls and press releases. The next update will be during the Q3 2026 earnings call, expected in November 2026.		Placer.ai: Store foot traffic % change YoY for HD
Underlying Gross Margin Performance (excluding tariff impact)	Gross margin is critical for profitability. Understanding the underlying trend, separate from one-time tariff benefits, reveals the true impact of cost pressures and pricing power.	Management commentary on underlying gross margin performance, specifically the impact of fuel, energy, and other product input costs. Watch for the expectation that Q4 gross margin will be flat year-over-year.	If management indicates underlying gross margin pressure is less than expected, or Q4 gross margin is expected to be above flat year-over-year = Bullish. If management indicates underlying gross margin pressure is greater than expected, or Q4 gross margin is expected to be below flat year-over-year = Bearish.	Company earnings calls and press releases. The next update will be during the Q3 2026 earnings call, expected in November 2026.	EIA (U.S. Energy Information Administration): Weekly retail gasoline and diesel prices. BLS (Bureau of Labor Statistics): Producer Price Index for building materials.	S&P Global Platts: Commodity price data (resin, metals)
SRS Organic Sales Growth & Cross-Sell Synergies	SRS is central to Home Depot's 'Complex Pro' strategy and market share expansion in specialized wholesale distribution. Strong performance here validates the acquisition strategy and drives incremental revenue.	Reported organic sales growth for SRS (expected mid-single digits for fiscal 2026). Progress on the $400 million cross-sell run rate for fiscal 2026.	If SRS organic sales growth exceeds mid-single digits for FY26 and reported cross-sell run rate exceeds $400 million for FY26 = Bullish. If SRS organic sales growth is below mid-single digits or reported cross-sell run rate falls short of $400 million for FY26 = Bearish.	Company earnings calls and press releases. The next update will be during the Q3 2026 earnings call, expected in November 2026.
Big Ticket Comp Transactions (>$1,000)	This metric indicates customer willingness to undertake larger, higher-value renovation projects, which are crucial for the Pro segment and overall revenue growth. An acceleration suggests improving discretionary spending and consumer confidence.	Quarterly comparable sales growth for transactions over $1,000. Home Depot reported +2.4% for Q2 2026. Monitor for sustained growth or further acceleration.	If big ticket comp growth sustains above +2.4% year-over-year = Bullish. If big ticket comp growth decelerates below +2.0% year-over-year = Bearish.	Company earnings calls and press releases. The next update will be during the Q3 2026 earnings call, expected in November 2026.		Earnest Research: Home Improvement spending by ticket size

Key Reported Metrics, Reratings Triggers & Results3 rows

This metric indicates customer willingness to undertake larger, higher-value renovation projects. Its improvement is a key 'telltale' for a turn in the market a

Last reported · 2026-08-18

Key reported metrics			Rerating thresholds			Earnings results
Metric	Last period	Why it matters	What's needed for rerating	Rerating context	Earnings date	Actual reported	Hit target?	Notes
Big Ticket Comp Transactions (>$1,000)	+0.8%	This metric indicates customer willingness to undertake larger, higher-value renovation projects. Its improvement is a key 'telltale' for a turn in the market and a recovery in discretionary spending.	For the stock to rerate higher, Big Ticket Comp Transactions (>$1,000) needs to accelerate above +1.0% year-over-year for the upcoming Q2 2026 earnings report. This acceleration must be explicitly accompanied by management commentary indicating a genuine improvement in discretionary project demand, moving beyond reliance on normalized storm activity or easier comparisons.	This metric signals consumer confidence in large discretionary projects, a key driver for Home Depot's Pro segment growth. Exceeding +1.0% with positive management commentary would validate the long-term bull case, justify its premium valuation, and indicate a market inflection point, shifting the narrative towards growth.	2026-08-18	2.4% y/y growth	Partially	Big ticket comp transactions (over $1,000) increased by 2.4% year-over-year, which is above the rerating trigger of +1.0%. [cite: 0, Ticker_ReratingThresholds] However, management commentary explicitly stated that 'larger discretionary projects remain under pressure' and 'consumer uncertainty and housing affordability continue to pressure demand for larger home improvement projects'. This indicates that the acceleration was not accompanied by the required commentary of a genuine improvement in discretionary project demand. [cite: 0, Ticker_ReratingThresholds]
Adjusted Diluted Earnings Per Share	-3.7%	A crucial income statement metric, EPS reflects overall profitability and operational efficiency. Management's guidance for the full year and its performance in Q1 are closely watched for investor confidence.	For the upcoming Q2 2026 earnings report, Adjusted Diluted Earnings Per Share needs to hit $4.85 or higher. This would represent a significant beat over the consensus estimate of $4.73 and demonstrate year-over-year growth of approximately 3.6% (compared to $4.68 in Q2 2025), signaling a stronger recovery than the modest 1.07% implied by current consensus.	A significant beat on Adjusted Diluted EPS, coupled with strong positive year-over-year growth, would signal Home Depot's strategic investments are effectively offsetting headwinds and driving a faster recovery. This validates its premium valuation, shifts the narrative to growth, and reinforces investor confidence in achieving long-term targets.	2026-08-18	$4.92 (5.1% y/y growth)	Yes	The company reported Adjusted Diluted Earnings Per Share of $4.92, which represents a 5.1% year-over-year increase compared to $4.68 in Q2 2025. This significantly exceeded the rerating trigger of $4.85 and the required 3.6% year-over-year growth, as well as the consensus estimate of $4.73. [cite: 0, Ticker_ReratingThresholds] Management stated that the second quarter results exceeded their expectations.
Comparable Sales	+0.6%	This is the primary gauge of organic demand, reflecting underlying sales performance. Investors watch for a reversal of negative trends, signaling a potential 'thaw' in the housing market and effective market share capture.	Home Depot needs to report Comparable Sales at or above +0.6% for the upcoming quarter. This would demonstrate sustained positive organic growth, match or exceed the prior quarter's performance, and significantly outperform the current consensus estimate of -1.3%.	Achieving this threshold signals a housing market inflection and validates Home Depot's 'Complex Pro' strategy. It demonstrates market share capture despite low housing turnover, justifying HD's premium valuation and shifting the narrative to a growth-oriented recovery.	2026-08-18	1.7% y/y growth	Yes	Home Depot reported a comparable sales increase of 1.7% for the second quarter. This comfortably surpassed the rerating trigger of +0.6% and demonstrated sustained positive organic growth, outperforming the prior quarter's performance and the consensus estimate. [cite: 0, Ticker_ReratingThresholds] U.S. comparable sales increased by 1.3%.

Key Questions

Given the Q2 gross margin benefit from tariff refunds largely offsetting other cost pressures, and the reaffirmation of FY26 gross margin guidance of approximat

Given the Q2 gross margin benefit from tariff refunds largely offsetting other cost pressures, and the reaffirmation of FY26 gross margin guidance of approximately 33.1%, can Home Depot effectively manage ongoing cost headwinds (fuel, energy, commodities, new tariffs) to achieve its full-year profitability targets and deliver a flat gross margin by Q4 2026?

Question 2: Following strong Q2 performance from SRS and increased cross-selling activity (90% of stores closing sales through SRS), can Home Depot sustain mid-single-digit organic sales growth for its integrated Pro platforms (SRS, GMS, Mingledorff's) and achieve its $400 million cross-sell run rate target for fiscal 2026, further solidifying its competitive advantage in the Pro market?
Question 3: Despite persistent pressure on large discretionary projects and historically low housing turnover, can Home Depot sustain the Q2 acceleration in big-ticket comp transactions (up 2.4%) and overall comparable sales growth, or will the 'higher for longer' interest rate environment and consumer uncertainty ultimately temper demand in the back half of fiscal 2026?

Earnings Transcript Summary4 rows

2026-08-18 · 2026Q2 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Executing strategy and winning in the market: Management emphasized their unwavering focus on driving their core business and culture, delivering a frictionless interconnected experience, and winning the Pro customer, especially in a dynamic environment. 2. Enhancing the interconnected experience and delivery speed: They are making significant progress on initiatives like the nationwide launch of Express Delivery (offering delivery in 3 hours or less for tens of thousands of products) and evolving the appliance delivery model to provide next-day service in certain markets, which is contributing to sales lift and greater customer engagement. 3. Winning with the Pro customer: Management highlighted strong performance across all Pro cohorts, attributing this success to strategic investments in systems, capabilities, product assortment, job lot quantities, delivery, sales teams, and specialized services, which are fostering sticky and lasting relationships with Pro customers.	Call Takeaway & ToneThe overall takeaway of the call is that Home Depot delivered better-than-expected Q2 2026 results by successfully executing its strategy and gaining market share in a challenging and volatile macroeconomic environment. Despite persistent consumer uncertainty, housing affordability pressures, and a "frozen housing market" impacting larger discretionary projects, the company experienced broad-based demand across its business, with 13 of 16 merchandising departments posting positive comparable sales. Management expressed confidence that their ongoing investments in the Pro segment, interconnected experience (including faster delivery options), and store operations are resonating positively with customers. The tone of the call was cautious but confident and resilient, as management acknowledged external headwinds while reaffirming full-year guidance and emphasizing their ability to control internal factors and continue to grow market share.	Prior Quarter'S Y/Y Growth By SegmentIn the prior quarter (2026Q1), total sales increased 4.8% year-over-year, accelerating to 5.7% in Q2. Comparable sales increased 0.6%, accelerating to 1.7% in Q2. U.S. comparable sales were up 0.4%, accelerating to 1.3% in Q2. The comparable average ticket increased 2.2%, accelerating to 2.8% in Q2. Comparable transactions decreased 1.3%, improving to a -1% decrease in Q2. Big ticket comparable transactions (over $1,000) were positive 0.8%, accelerating to 2.4% in Q2. Total company online comparable sales increased over 10%, slightly accelerating to 11% in Q2. Pro sales posted positive comps and outperformed DIY in both quarters. Mexico had positive comps in both quarters, while Canada was negative in Q1 but positive in Q2. SRS comps were slightly negative (low single-digit negative in roofing) in Q1, but were above the company average and positive in all verticals in Q2.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Tariff refund impact and future gross margin: Analysts questioned the $685 million tariff refund, its allocation to past versus current P&L, expectations for future refunds, and the gross margin impact in the next year. Management clarified that $730 million in tariff refunds were received, with $685 million reducing Q2 cost of goods sold for products already sold and $45 million remaining in inventory. They stated that these refunds offset unplanned cost pressures (including fuel, energy, other product inputs, and new Section 301 tariffs) and that while there might be quarterly timing shifts, the annual impact should be offset, leading to a "clean jumping off point" for 2027. They expect Q4 gross margin to be relatively flat year-over-year. 2. Underlying demand and consumer re-engagement: Analysts sought to understand how much of Home Depot's Q2 performance was due to company-specific actions versus a broader re-engagement of the home improvement consumer, asking for evidence such as app downloads or Magic Apron usage. Management asserted confidence in taking market share in a difficult environment, citing strong customer response to their initiatives, record on-shelf availability, and continuous innovation. They pointed to 11% online growth, the app being their highest growth digital surface, and millions of questions per month on Magic Apron as evidence of digital engagement. 3. Gross margin pressure excluding tariff refunds: Analysts inquired about the factors leading to 117 basis points of gross margin pressure excluding the tariff refund and what components would be ongoing versus one-time. Management explained that approximately 60 basis points of pressure came from increased costs (fuel, energy, commodity inputs, new tariffs) which the tariff refunds effectively offset, and the other 60 basis points was due to the mix impact from the GMS and Mingledorff's acquisitions. They reiterated confidence in maintaining stable gross margin and effectively managing various cost environments.	Revenue SegmentsTotal sales increased 5.7% year-over-year. Comparable sales increased 1.7%, with U.S. comparable sales up 1.3%. Mexico and Canada posted positive comparable sales. Total company online comparable sales increased 11%. The comparable average ticket increased 2.8%, while comparable transactions decreased 1%. Big ticket comparable transactions (over $1,000) were positive 2.4%. Pro sales posted positive comps and outperformed DIY. Thirteen of 16 merchandising departments posted positive comparable sales. SRS comps were above the company average and positive in all verticals.

2026-05-19 · 2026Q1 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Winning the Pro and expanding market share: Management is heavily focused on growing its Pro business, which represents a $700 billion market opportunity. This includes strategic acquisitions like Mingledorff's (HVAC distribution) to penetrate new markets, leveraging the SRS platform, and developing differentiated capabilities such as a field sales force, enhanced delivery options, and trade credit. They noted that the Pro business outperformed DIY and complex purchase occasions showed stronger growth. 2. Delivering a frictionless interconnected experience: The company is committed to optimizing fulfillment options and removing friction from the customer experience across stores and online. Initiatives include evolving sourcing logic for optimal store fulfillment, improving delivery speed ('ship from best location'), and enhancing the Pro Digital Workspace with tools for product planning, material list building, real-time delivery tracking, and complex order scheduling. 3. Driving core and culture through associate engagement and operational efficiency: Home Depot is focused on elevating the shopping experience by simplifying in-store processes and increasing associate engagement. This involves transitioning more store tasking to Merchandise Execution Teams (MET) to allow Orange Apron associates to focus more on customer service, which has shown positive results in customer satisfaction and likelihood to shop again scores.	Call Takeaway & ToneThe overall takeaway of the call is that Home Depot is navigating a challenging and volatile macroeconomic environment, characterized by persistent consumer uncertainty, high interest rates, and low housing turnover, which continues to pressure large discretionary projects. Despite these headwinds, the company's Q1 results were in line with expectations, and management reaffirmed its fiscal 2026 guidance. The company is successfully gaining market share, particularly within the Pro segment, by executing its strategic initiatives focused on expanding its Pro ecosystem through acquisitions (like Mingledorff's and SRS), enhancing its interconnected shopping experience, and improving operational efficiency through associate engagement. The tone of the call was cautious but confident and resilient, with management acknowledging external pressures while expressing strong belief in their long-term strategy and ability to outperform the market.	Prior Quarter'S Y/Y Growth By SegmentCompared to Q4 2025, total sales growth accelerated from -3.8% to +4.8%. Total company comp sales accelerated from +0.4% to +0.6%. U.S. comp sales accelerated from +0.3% to +0.4%. Comp average ticket decelerated from +2.4% to +2.2%. Comp transactions improved from -1.6% to -1.3%. Big ticket comp transactions (over $1,000) decelerated from +1.3% to +0.8%. Total company online comp sales slightly decelerated from +11% to over +10%. Pro comps remained consistent, being positive and outperforming DIY in both quarters. SRS comps remained consistent, being down low single-digits in Q4 2025 and slightly negative (low single-digit negative in roofing) in Q1 2026.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. The cadence of comps and drivers for improvement in the second half, especially concerning underlying demand and weather impacts: Management responded that they are not looking for a marked improvement in underlying demand, but rather expect higher comps in the second half of the year solely driven by a return to normal store activity and easier comparisons to prior year storm activity. They acknowledged weather variability in Q1 but noted strong engagement when favorable, and that storm impacts from last year (56 basis points in Q1) would dissipate. 2. Consumer resilience/shakiness due to macro factors (higher oil prices, interest rates) and their long-term impact on demand: Management stated that their core customer has been 'remarkably resilient' despite economic pressures, citing healthy financial positions (home equity, equities). They noted that while higher rates and low housing turnover are headwinds, the company is focused on controlling what it can and taking market share, not contemplating changes to its long-term strategy or capital allocation. 3. Gross margin trajectory and the impact of GMS acquisition, freight, fuel, and tariffs: Management clarified that the Q1 gross margin decrease of 75 basis points was 'vast majority' due to the GMS acquisition and some price investments at SRS, with the core margin remaining stable. They expect year-over-year pressure in Q2, then flattish in Q3/Q4. While acknowledging potential cost pressures from fuel, commodities, and new tariffs, they mentioned that tariff refunds could provide a 'significant offset' and they would continue to manage costs and pricing to maintain value.	Revenue SegmentsTotal sales increased 4.8% year-over-year. Comparable sales increased 0.6%, with U.S. comparable sales up 0.4%. The comp average ticket increased 2.2%, while comp transactions decreased 1.3%. Big ticket comp transactions (over $1,000) were positive 0.8%. Pro sales posted positive comps and outperformed DIY. Total company online comp sales increased over 10%. In local currency, Mexico had positive comps, while Canada was negative. Nine of 16 merchandising departments, including storage, power, hardware, plumbing, electrical, bath, indoor garden, paint, and kitchens, posted positive comps. SRS comps were slightly negative, driven by low single-digit negative comps in roofing.

2026-02-24 · 2025Q4 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Winning the Pro and enhancing the Pro ecosystem: Management is focused on growing market share with Pros by investing in capabilities like AI-driven project management tools, list builders, AI blueprint takeoffs, improved sales support, order management, trade credit platforms, and delivery reliability. They highlighted achieving '2 Sigma on time and complete' for Pro deliveries and the continued growth of their Pro Xtra loyalty program. 2. Delivering a frictionless interconnected experience: The company is investing in its digital platforms and supply chain to improve the customer experience, particularly for online orders, with over 50% fulfilled through stores. Recent enhancements include real-time delivery tracking for big and bulky items, which has led to increased customer engagement and sales. 3. Strengthening core operations and culture through associate engagement: Management emphasized improving associate engagement and customer service by enabling tools and processes, transitioning tasking to MET teams to free up Orange Apron associates for customer interaction, and realigning store positions (e.g., Operations Experience Manager, Pro Customer Experience Manager) to enhance service and efficiency. These efforts have resulted in increased customer satisfaction scores and higher hourly associate tenure.	Call Takeaway & ToneThe overall takeaway of the call is that Home Depot is navigating a challenging housing and consumer environment by strategically focusing on its Pro business through acquisitions like SRS and GMS, and by leveraging technology and operational efficiencies to gain market share. While underlying demand remains relatively stable, large discretionary projects are still under pressure due to consumer uncertainty, low housing turnover, and affordability concerns. Management provided a cautious outlook for fiscal 2026, expecting flat to 2% comparable sales growth, with the first quarter anticipated to be the weakest due to acquisition annualization and timing comparisons. The tone was cautious but resilient, with management acknowledging macro headwinds but expressing confidence in their long-term strategy and ability to outperform the market.	Prior Quarter'S Y/Y Growth By SegmentIn the third quarter of fiscal 2025, Total Sales increased 2.8% (including ~$900M from GMS). Comp Sales increased 0.2%, and U.S. Comp Sales increased 0.1%. Online Sales increased 11.0%. Big Ticket (>$1,000) increased 2.3%. Both Pro and DIY Comps were positive and relatively in line. Comparing Q4 2025 to Q3 2025 year-over-year growth: Total sales growth decelerated from +2.8% to -3.8% (though impacted by the 53rd week comparison). Total company comp sales accelerated from +0.2% to +0.4%. U.S. comp sales accelerated from +0.1% to +0.3%. Online sales growth remained consistent at +11%. Big ticket comp transactions (>$1,000) decelerated slightly from +2.3% to +1.3%.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Pro initiatives and digital planning tools: Analysts inquired about specific initiatives to improve the value proposition for Pros, including digital planning tools and delivery. Management responded by detailing the rollout of AI takeoff schemes, project management and list builder tools, improved delivery reliability (achieving 2 Sigma on-time and complete), job site preferences, enhanced customer communications, growth in online B2B sales, trade credit efforts, and live tracking for big and bulky deliveries enabled by new handheld devices. 2. SRS sales performance and GMS contribution: Analysts asked for clarification on SRS sales performance in fiscal 2025 and GMS's contribution in the fourth quarter. Management explained that SRS's comps were down low single-digits in Q4 due to a significant industry decline in shingle shipments (down 28% year-over-year), but SRS still gained market share. They expressed satisfaction with GMS's performance and highlighted ongoing efforts to drive revenue synergies between Home Depot, SRS, and GMS through combined customer approaches and cross-selling opportunities. 3. 2026 outlook, Q1/Q2 cadence, and external factors (snow, tax refunds, tariffs): Analysts pressed on the dynamics influencing the 2026 flat to 2% comp outlook, including the impact of winter storms, potential tax refunds, and tariffs. Management stated they expect second-half comps to be slightly higher than the first half due to easier comparisons to 2025 storm activity. They noted they are not planning on significant support from tax stimulus due to uncertainty regarding how refunds will be used. Regarding tariffs, they indicated that over 50% of projects are sourced domestically, and they are mostly done with tariff-related pricing actions related to April impacts. They also detailed expected Q1 gross margin and operating expense pressures due to GMS annualization and timing comparisons, leading to an anticipated mid-single-digit percentage negative EPS performance in Q1, improving through the year.	Revenue SegmentsFor fiscal 2025, total sales increased 3.2% to $164.7 billion, comp sales increased 0.3%, and U.S. comps increased 0.5%. In the fourth quarter of 2025, total sales decreased approximately 3.8% to $38.2 billion (due to lapping a 53rd week in fiscal 2024). Total company comp sales increased 0.4%, and U.S. comp sales were up 0.3%. Mexico reported positive comps in local currency, while Canada reported negative comps. Comp average ticket increased 2.4%, and comp transactions decreased 1.6%. Big ticket comp transactions (over $1,000) were positive 1.3%. Pro posted positive comps and outperformed DIY. Total company online comp sales increased approximately 11%. SRS grew organic sales by a low single-digit percentage in fiscal 2025.

2025-11-18 · 2025Q3 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Pro Ecosystem & Complex Projects: Integrating the SRS and GMS acquisitions to provide a 'one-stop shop' for Pros working on complex projects through wholesale-like capabilities. 2. Technological Differentiation: Rolling out AI-driven tools like 'blueprint takeoffs' and new project planning applications to reduce manual labor for Pros and increase order accuracy. 3. Operational Efficiency: Improving supply chain speed and store productivity (e.g., 'freight flow' application) to maintain high in-stock levels and customer satisfaction despite macro headwinds.	Call Takeaway & ToneTakeaway: Home Depot is successfully pivoting toward the 'Complex Pro' market to offset a sluggish DIY environment, using acquisitions (SRS, GMS) to drive growth while core demand remains muted by high interest rates and low housing turnover. Tone: Cautious but Resilient; management is realistic about the 'consumer uncertainty' and housing pressure but remains focused on taking market share through superior execution.	Prior Quarter'S Y/Y Growth By SegmentIn 2025Q2 (reported Aug 2024), Total Sales were +0.6%, Comp Sales were -3.3%, U.S. Comp Sales were -3.6%, and Online Sales were +4.0%. Comparison: Q3 saw significant acceleration in total and comp sales growth compared to Q2.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Q4 Margin Deleveraging: Analysts questioned the 13% adjusted operating margin guide; Mgmt explained this includes 50bps of deleverage from lapping the 53rd week, GMS transaction fees, and seasonal swings in the SRS/GMS businesses. 2. Impact of Storm Activity: Analysts asked why results missed expectations; Mgmt noted that a 'lack of storms' compared to historic norms significantly pressured roofing, power generation, and plywood categories. 3. Housing Market Weakness: Analysts pressed on the recovery timeline; Mgmt responded that housing turnover is at 40-year lows (2.9%) and home prices are adjusting, which disproportionately impacts home improvement demand, though a $50B 'underspend' in repairs exists.	Revenue SegmentsTotal Sales: +2.8% (includes ~$900M from GMS); Comp Sales: +0.2%; U.S. Comp Sales: +0.1%; Online Sales: +11.0%; Big Ticket (>$1,000): +2.3%; Pro and DIY Comps: Both positive and relatively in line.

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2026-08-18

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)
About Expanding Eligible MarketThe company is expanding its Pro offerings, with SRS outperforming and taking significant share across all verticals. Home Depot will be the exclusive launch partner for USG's ultralight tough gypsum panels in big-box retail and is accelerating growth with RUCO joint treatments. The combined product catalog of Home Depot, SRS, GMS, and HVAC is resonating with Pro customers, with 90% of stores having closed a sale through SRS in the last 12 months. They plan to open approximately 15 new stores and 40 to 50 new SRS branches in fiscal 2026, and are expanding the SRS purchase card for use in Home Depot stores.	About CompetitionHome Depot is confident it is taking market share in a difficult environment, with SRS outperforming the company average and taking significant share across all verticals. The company has built a strong competitive advantage with its extensive lineup of battery-powered platforms, leading to share growth in those categories. Milwaukee PACKOUT is highlighted as the industry's most versatile and durable modular storage system, and the exclusive launch of USG's ultralight tough gypsum panels further solidifies leadership in Pro building materials.	About The Broader IndustryConsumer uncertainty and housing affordability continue to pressure demand for larger home improvement projects, with larger discretionary projects remaining under pressure. Housing turnover has been at historical lows for four years, with no sign of an inflection point. The industry faces significant unplanned cost pressures from fuel, energy, and other product inputs like commodities (resin, metals). There have also been incremental changes in tariffs, with Section 101 expiring and being replaced by Section 301.	Where Things Are HeadedHome Depot reaffirmed its fiscal 2026 guidance, expecting comp sales growth of flat to 2% and total sales growth of 2.5% to 4.5%. SRS is projected to deliver mid-single-digit organic sales growth for the year. The company plans to open approximately 15 new stores and 40 to 50 new SRS branches. Gross margin is expected to be around 33.1%, with adjusted operating margin between 12.8% and 13%. Diluted EPS and adjusted diluted EPS are expected to increase flat to 4%. Capital expenditures are planned at 2.5% of sales. Gross margin is expected to be relatively flat year-over-year by Q4 2026, with the company emphasizing a 'clean jumping off point' for 2027.	Updates On ThemeU.S.	Broader Themes EmergingThe increasing integration of AI-powered tools like Magic Apron for both associates and customers to enhance in-store navigation, product information, and project confidence. The continued focus on a frictionless interconnected experience through faster delivery speeds, including nationwide Express Delivery and optimized big and bulky product fulfillment. The strategic expansion and integration of the Pro ecosystem through acquisitions like SRS and GMS, leveraging combined product catalogs and capabilities to capture greater wallet share with professional customers.	Bullish-Leaning Quotes (Short)Sales for the second quarter were $47.9 billion, an increase of 5.7%. Our second quarter results exceeded our expectations. We saw broad-based demand across the business. Winning with the Pro. Pro positive comp in the quarter. 100% of our stores qualified for Success Sharing. 13 of our 16 merchandising departments posting positive comps. Big ticket comp transactions, or those over $1,000 were positive 2.4%. Total company online comp sales increased 11%. Q2 was a record-setting sales quarter for portable power tools. We are reaffirming our fiscal 2026 guidance. SRS comped above the company average this quarter. 90% of our stores have closed a sale through SRS.	Bearish-Leaning Quotes (Short)Consumer uncertainty and housing affordability continue to pressure demand for larger home improvement projects. Larger discretionary projects remain under pressure. Comp transactions decreased 1%. Our operating margin for the second quarter was 14.3% compared to 14.5% in the second quarter of 2025. Housing turnover has been at historical lows for 4 years now. There's just no sign of an inflection point at this moment. Unplanned pressure from fuel, energy and other product input costs that we expect will fully offset the benefit from tariff refunds over the year. We have a lot of volatility. We've got unplanned cost pressure that's significant in the market, and we have frozen housing conditions.

2026-05-19

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketThe Home Depot completed the acquisition of Mingledorff's, a leading wholesale distributor of heating, ventilation, and air conditioning (HVAC) equipment, serving residential and commercial customers through 42 locations in 5 states across the Southeastern United States. This acquisition provides an opportunity to penetrate the national market for HVAC parts and supplies, leveraging the power of the enterprise. HVAC distribution represents an addressable market of approximately $100 billion, increasing Home Depot's total addressable market to $1.2 trillion. SRS can now serve more Pros and gain greater share of wallet in this highly fragmented market. The company is focused on winning the Pro customer, which represents a $700 billion market opportunity, by developing differentiated capabilities like a field sales force, enhanced delivery options, and trade credit to better serve residential Pro customers. Home Depot is also developing construction resources into a leading finished interior platform. Cross-selling efforts between Home Depot, SRS, GMS, and HD Supply are underway, with a target of a $400 million cross-sell run rate this year, aiming to double that next year. The Pro Trade Credit program is expanding online and integrating with e-procurement capabilities and construction management software. For fiscal 2026, the company plans to open approximately 15 new stores and 40 to 50 new SRS locations.	About CompetitionHome Depot believes it is uniquely positioned with capabilities that are not easy to replicate. The company is confident its comprehensive product offering, capabilities, and services will deliver an exceptional experience for Pros, leading to sustained growth and outsized market share gains. SRS outperformed its competition in each sector by hundreds of basis points in Q1. Home Depot's modest sales increase, compared to negative government retail sales data or PFRI data, indicates customers are responding to the Home Depot brand, service levels, and offerings. The company intends to execute and take share in the second quarter. SRS took considerable share from other distributors despite significant pressures in the roofing market. Home Depot is successfully winning with single and multifamily builders and large remodelers. The managed sales force, both outside and in-store, is successfully capturing share with high-value customers.	About The Broader IndustryThe underlying demand in the business was relatively similar to what was seen throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure. Larger discretionary projects remain under pressure. Housing turnovers remain low, and the industry is not expecting much growth in housing turnover this year, with new construction starts and sales also trending down. The core customer is described as remarkably resilient and among the healthiest consumers, often owning their homes, benefiting from a 50% home value increase, and improved equity portfolios. However, uncertainty is holding them back from undertaking large projects. A 'higher for longer' interest rate environment in a slow housing market necessitates continued focus on controlling what can be controlled and taking market share. The external environment is perceived as more volatile than three months prior. The roofing market experienced a 28% drop in shipments in Q4 of last year, marking the worst quarter since 2019. Potential cost pressures are building due to rising fuel prices, other commodity input costs, and newly introduced tariffs. The home improvement industry is viewed as being in a 'cycle,' following a 'tremendous spike in demand' and an 'extended period of moderation.' Despite this, the long-term prospects in U.S. housing, home ownership, home value, and the aging of homes remain bullish.	Where Things Are HeadedHome Depot reaffirmed its fiscal 2026 guidance, expecting comp sales to range between flat to 2% growth and total sales growth between approximately 2.5% and 4.5%. The company anticipates a higher comp in the second half of the year, driven solely by a return to normal store activity, not a marked improvement in underlying demand. SRS is projected to deliver mid-single-digit percent organic sales growth for the year. Plans include opening approximately 15 new stores and 40 to 50 new SRS locations. Gross margin is expected to be approximately 33.1% for the year. Operating margin is targeted at approximately 12.4% to 12.6%, with an adjusted operating margin of approximately 12.8% to 13%. Diluted earnings per share and adjusted diluted earnings per share are both expected to increase approximately flat to 4% compared to fiscal 2025. Capital expenditures are planned at approximately 2.5% of sales for fiscal 2026. The company expects to continue growing market share. Home Depot intends to build HVAC into SRS's fifth vertical, with modest tuck-in acquisitions to add geographies for key manufacturers. Cross-selling efforts are expected to achieve a $400 million run rate this year, with plans to double that next year. Gross margin will still face year-over-year pressure in Q2, though less than Q1, and is expected to be relatively flat year-over-year in Q3 and Q4. The company is not contemplating changing its capital allocation to the core business and its three-pronged strategy (core, interconnected, Pro).	Updates On ThemeU.S.	Broader Themes EmergingThe increasing integration and reliance on AI-enabled tools for professional contractors, such as the product planning tool, AI-powered material list builder, and the Pro Digital Workspace, are emerging as a key theme for enhancing efficiency and customer loyalty. The strategic expansion into specialized distribution verticals through acquisitions like Mingledorff's is a broader theme of increasing total addressable market and capturing a larger share of the Pro customer's wallet. The focus on creating a frictionless interconnected experience, leveraging proprietary models like 'ship from best location' and optimizing order routing, reflects a broader industry trend towards advanced omnichannel fulfillment.	Bullish-Leaning Quotes (Short)Sales for the first quarter were $41.8 billion, an increase of 4.8% from the same period last year. Our results were in line with our expectations. We completed the acquisition of Mingledorff's, a leading wholesale distributor of heating, ventilation and air conditioning equipment. HVAC distribution represents an addressable market of approximately $100 billion, and increases our total addressable market to $1.2 trillion. What we are building is unique and not easy to replicate. Our on-time and complete performance has never been better, and our customer satisfaction scores for deliveries... are at record highs. Total company online comp sales... increased over 10%. Our power categories posted a first quarter record for sales. We are reaffirming our fiscal 2026 guidance. SRS took considerable share from other distributors.	Bearish-Leaning Quotes (Short)Comp sales increased 0.6% from the same period last year and comps in the U.S. increased 0.4%. Adjusted diluted earnings per share were $3.43 in the first quarter compared to $3.56 in the first quarter of last year. Canada was negative. Greater consumer uncertainty and housing affordability pressure. Larger discretionary projects remain under pressure. Comp transactions decreased 1.3%. Housing turnovers remain low, industry is not expecting a lot of growth in housing turnover this year, and new construction starts in sales are also trending down. Gross margin was 33%, a decrease of approximately 75 basis points from the first quarter of last year. The roofing market saw a 28% drop in shipments in Q4 of last year. Potential cost pressures building in the form of fuel prices and other commodity input costs, new tariffs have been introduced.	HiringThe company is transitioning more store tasking to its merchandising execution team (MET) to allow Orange Apron associates to spend more time engaged with customers. This transition has occurred in over 1,000 stores and is expected to be completed in all stores by the end of fiscal 2026. Home Depot is also focusing on having the right leadership and technology capabilities, including an operations experience manager, to simplify operational demands and improve customer experience. The combined enterprise now commands a professional sales force of over 5,000 associates.

2026-05-19

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)
About Expanding Eligible MarketThe Home Depot completed the acquisition of Mingledorff's, a leading wholesale distributor of heating, ventilation, and air conditioning (HVAC) equipment, serving residential and commercial customers through 42 locations in 5 states across the Southeastern United States. This acquisition provides an opportunity to penetrate the national market for HVAC parts and supplies, leveraging the power of the enterprise. HVAC distribution represents an addressable market of approximately $100 billion, increasing Home Depot's total addressable market to $1.2 trillion. SRS can now serve more Pros and gain greater share of wallet in this highly fragmented market. The company is focused on winning the Pro customer, which represents a $700 billion market opportunity, by developing differentiated capabilities like a field sales force, enhanced delivery options, and trade credit to better serve residential Pro customers. Home Depot is also developing construction resources into a leading finished interior platform. Cross-selling efforts between Home Depot, SRS, GMS, and HD Supply are underway, with a target of a $400 million cross-sell run rate this year, aiming to double that next year. The Pro Trade Credit program is expanding online and integrating with e-procurement capabilities and construction management software. For fiscal 2026, the company plans to open approximately 15 new stores and 40 to 50 new SRS locations.	About CompetitionHome Depot believes it is uniquely positioned with capabilities that are not easy to replicate. The company is confident its comprehensive product offering, capabilities, and services will deliver an exceptional experience for Pros, leading to sustained growth and outsized market share gains. SRS outperformed its competition in each sector by hundreds of basis points in Q1. Home Depot's modest sales increase, compared to negative government retail sales data or PFRI data, indicates customers are responding to the Home Depot brand, service levels, and offerings. The company intends to execute and take share in the second quarter. SRS took considerable share from other distributors despite significant pressures in the roofing market. Home Depot is successfully winning with single and multifamily builders and large remodelers. The managed sales force, both outside and in-store, is successfully capturing share with high-value customers.	About The Broader IndustryThe underlying demand in the business was relatively similar to what was seen throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure. Larger discretionary projects remain under pressure. Housing turnovers remain low, and the industry is not expecting much growth in housing turnover this year, with new construction starts and sales also trending down. The core customer is described as remarkably resilient and among the healthiest consumers, often owning their homes, benefiting from a 50% home value increase, and improved equity portfolios. However, uncertainty is holding them back from undertaking large projects. A 'higher for longer' interest rate environment in a slow housing market necessitates continued focus on controlling what can be controlled and taking market share. The external environment is perceived as more volatile than three months prior. The roofing market experienced a 28% drop in shipments in Q4 of last year, marking the worst quarter since 2019. Potential cost pressures are building due to rising fuel prices, other commodity input costs, and newly introduced tariffs. The home improvement industry is viewed as being in a 'cycle,' following a 'tremendous spike in demand' and an 'extended period of moderation.' Despite this, the long-term prospects in U.S. housing, home ownership, home value, and the aging of homes remain bullish.	Where Things Are HeadedHome Depot reaffirmed its fiscal 2026 guidance, expecting comp sales to range between flat to 2% growth and total sales growth between approximately 2.5% and 4.5%. The company anticipates a higher comp in the second half of the year, driven solely by a return to normal store activity, not a marked improvement in underlying demand. SRS is projected to deliver mid-single-digit percent organic sales growth for the year. Plans include opening approximately 15 new stores and 40 to 50 new SRS locations. Gross margin is expected to be approximately 33.1% for the year. Operating margin is targeted at approximately 12.4% to 12.6%, with an adjusted operating margin of approximately 12.8% to 13%. Diluted earnings per share and adjusted diluted earnings per share are both expected to increase approximately flat to 4% compared to fiscal 2025. Capital expenditures are planned at approximately 2.5% of sales for fiscal 2026. The company expects to continue growing market share. Home Depot intends to build HVAC into SRS's fifth vertical, with modest tuck-in acquisitions to add geographies for key manufacturers. Cross-selling efforts are expected to achieve a $400 million run rate this year, with plans to double that next year. Gross margin will still face year-over-year pressure in Q2, though less than Q1, and is expected to be relatively flat year-over-year in Q3 and Q4. The company is not contemplating changing its capital allocation to the core business and its three-pronged strategy (core, interconnected, Pro).	Updates On ThemeU.S.	Broader Themes EmergingThe increasing integration and reliance on AI-enabled tools for professional contractors, such as the product planning tool, AI-powered material list builder, and the Pro Digital Workspace, are emerging as a key theme for enhancing efficiency and customer loyalty. The strategic expansion into specialized distribution verticals through acquisitions like Mingledorff's is a broader theme of increasing total addressable market and capturing a larger share of the Pro customer's wallet. The focus on creating a frictionless interconnected experience, leveraging proprietary models like 'ship from best location' and optimizing order routing, reflects a broader industry trend towards advanced omnichannel fulfillment.	Bullish-Leaning Quotes (Short)Sales for the first quarter were $41.8 billion, an increase of 4.8% from the same period last year. Our results were in line with our expectations. HVAC distribution represents an addressable market of approximately $100 billion, and increases our total addressable market to $1.2 trillion. What we are building is unique and not easy to replicate. Our on-time and complete performance has never been better, and our customer satisfaction scores for deliveries... are at record highs. Total company online comp sales... increased over 10%. We are reaffirming our fiscal 2026 guidance. SRS took considerable share from other distributors.	Bearish-Leaning Quotes (Short)Comp sales increased 0.6% from the same period last year and comps in the U.S. increased 0.4%. Adjusted diluted earnings per share were $3.43 in the first quarter compared to $3.56 in the first quarter of last year. Canada was negative. Greater consumer uncertainty and housing affordability pressure. Larger discretionary projects remain under pressure. Comp transactions decreased 1.3%. Housing turnovers remain low, industry is not expecting a lot of growth in housing turnover this year, and new construction starts in sales are also trending down. Gross margin was 33%, a decrease of approximately 75 basis points from the first quarter of last year. The roofing market saw a 28% drop in shipments in Q4 of last year. Potential cost pressures building in the form of fuel prices and other commodity input costs, new tariffs have been introduced.

2026-02-24

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
About Expanding Eligible MarketHome Depot is expanding its eligible market by investing in its Pro ecosystem, including sales support, project management, and delivery capabilities. This includes the continued momentum of SRS, which grew organic sales low single-digits in 2025 and is expected to grow mid-single digits in 2026, along with tuck-in acquisitions and new greenfield SRS locations. The company plans to open 15 new stores and 40-50 new SRS locations in 2026. Digital platforms are seeing continued success, with online B2B sales outpacing overall online growth, driven by new AI-powered tools like blueprint takeoffs and project planning for Pros. There's a strong focus on revenue synergies between Home Depot, HD Supply, SRS, and GMS, with examples of cross-selling to multifamily construction and property management companies. Investments in Pro trade credit, pricing pilots, order consolidation, and B2B integrations (E-Procurement, construction management software) are ongoing to enhance the Pro experience.	About CompetitionHome Depot believes it is growing market share across its business, including through SRS, which performed exceptionally and gained share in a challenging roofing industry. The company is committed to investing to take share in any market environment and expects to outperform the overall market in 2026.	About The Broader IndustryThe broader industry is characterized by ongoing consumer uncertainty, pressure on housing, and a lack of storm activity in 2025 (though January storms provided a Q4 benefit). Housing turnover remains at historical lows (30-40 year lows), impacting demand for projects associated with buying and selling homes. Mortgage rates and home prices since 2019 have impacted affordability. The roofing industry saw a dramatic decline in shipments in Q4 2025, down 28% year-over-year, marking the lowest annual volume since 2019, leading to pricing pressure. The overall market for 2026 is expected to be flat to up 1%. Consumer uncertainty is the primary reason customers are not investing in large projects. There's a cumulative underspend of $22 billion in home improvement due to aging homes. Big ticket discretionary projects have not yet shown improvement, which is seen as a key indicator for a market turn.	Where Things Are HeadedFor fiscal 2026, Home Depot expects total sales growth of 2.5% to 4.5%, comparable sales growth of flat to 2%, and adjusted diluted EPS growth of flat to 4%. SRS organic sales are projected to grow mid-single digits. The company plans to open 15 new stores and 40-50 new SRS locations. Gross margin is expected to be around 33.1%, with operating margin between 12.4% and 12.6% (adjusted 12.8% to 13%). Capital expenditures will be approximately 2.5% of sales. Comps are expected to be stronger in the second half of 2026, while Q1 EPS performance is anticipated to be mid-single-digit negative due to acquisition annualization and timing comparisons, improving throughout the year. Investments in Pro trade credit, pricing pilots, and B2B integrations will continue throughout 2026. The company anticipates returning to share repurchases in the first half of 2027.	Updates On ThemeHome	Broader Themes EmergingAI-driven productivity tools for professional contractors; the continued importance of an interconnected experience and frictionless fulfillment across online and in-store channels; the decoupling of general economic strength from home improvement demand due to housing-specific pressures; the strategic shift towards a hybrid retail-wholesale model through acquisitions (SRS, GMS) to capture the Complex Pro market and drive revenue synergies.	Bullish-Leaning Quotes (Short)We are growing market share by delivering the best value proposition in home improvement. We are uniquely positioned to grow share of wallet with all our customers. We're also encouraged by the traction we see with the Pro. SRS grew organic sales by a low single-digit percentage and expanded market share. We expect their organic sales to grow mid-single digits in fiscal 2026. Our customers are telling us that our associates continue to deliver exceptional service. Our merchants continue to offer tremendous value as evidenced by record-setting events in the quarter. Big ticket comp transactions or those over $1,000 were positive 1.3%. Pro posted positive comps and outperformed DIY. Online sales leveraging our digital platforms increased approximately 11%. We're excited about the continued success we are seeing across our interconnected platforms. We're excited about all of the progress we have made in our stores this year. Our efforts are paying off. Our customer satisfaction score increased every quarter. Our tenure with hourly associates is the highest it's been since 2017. We're excited about our live goods program. We feel great about our position. The vision of being a point of contact for that Pro and cross-selling is really gaining momentum.	Bearish-Leaning Quotes (Short)Ongoing consumer uncertainty and pressure on housing. Lack of storm activity in the third quarter. Larger discretionary projects remain under pressure. The current mortgage rate environment and significant increase in home prices since 2019 have impacted housing affordability. Housing turnover has remained at historical lows since 2023. Our customers also tell us they have concerns over general economic uncertainty, including inflation, growing job concerns and higher financing costs. We anticipate these pressures will persist as we have not yet seen a catalyst for an inflection in housing activity. The lowest industry volume since 2019. Lack of demand in the market did put significant pressure on the pricing environment for SRS. We're not expecting a robust building materials environment in Q1. Consumer uncertainty. That's still the #1 reason. We have not seen the increase in big ticket. Our year-over-year EPS performance will be mid-single-digit percentage negative in Q1.	HiringThe company has realigned certain positions in its stores, introducing an operations experience manager responsible for managing customer service and driving uniform operational processes. A dedicated unified Pro team, including a Pro customer experience manager, continues to elevate the Pro experience. The tenure with hourly associates is the highest it's been since 2017.

2025-11-18

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)
About Expanding Eligible MarketThe acquisition of GMS was completed in September, adding specialty building products like drywall, ceiling, and steel framing to the SRS portfolio. HD also launched a new 'blueprint takeoffs' tool using advanced AI to provide accurate material estimates for Pros, aiming to be a 'one-stop shop' for complex projects from planning to delivery.	About CompetitionManagement stated, 'We believe we are growing market share' despite a pressured environment. Specifically, while industry roofing shipments are down double digits due to a lack of storms, HD's SRS business comped flat, suggesting significant share gains against competitors. GMS is also reportedly taking share in the specialty distribution space.	About The Broader IndustryThe industry is facing a '40-year low' in housing turnover at 2.9% of housing stock. There is an estimated $50 billion cumulative underspend in normal repair and remodel activity. The lack of storm activity in 2025 compared to 2024 has created significant year-over-year pressure on categories like roofing, power generation, and plywood.	Where Things Are HeadedHD revised its FY2025 guidance, now expecting total sales growth of ~3% (including ~$2 billion from GMS) but comp sales to be only 'slightly positive.' Q4 is expected to face continued pressure from the lack of storm activity and housing turnover. The company is focusing on 'cross-sell' synergies between its retail stores, SRS, and GMS platforms.	Updates On ThemeHome	Broader Themes EmergingAI-driven productivity tools for professional contractors; the 'flywheel' effect of supply chain speed on digital engagement (11% online comp growth); and the decoupling of general economic strength (GDP/PCE) from home improvement demand due to housing-specific pressures.	Bullish-Leaning Quotes (Short)"We believe we are growing market share."; "SRS actually comped flat... taking significant share."; "Online sales increased approximately 11%."; "We have reached record in-stock and on-shelf availability levels."	Bearish-Leaning Quotes (Short)"Results missed our expectations primarily due to the lack of storms."; "Housing activity is truly a 40-year lows."; "Softer engagement in larger discretionary projects."; "Ongoing consumer uncertainty and pressure in housing."

NotesTable

Date	Comment	Comment Type	Comment Sentiment	Link	Price Reaction
2026-02-24	Home Depot affirmed FY2026 guidance for flat to 2% comp sales and flat to 4% EPS growth, despite an expected challenging Q1 due to acquisition annualization and timing. Management highlighted Pro segment strength, market share gains, and AI-driven tools. The stock outperformed the S&P 500 by 1.26% (t+2 days), indicating market confidence in its strategic investments and ability to navigate persistent housing and consumer uncertainty.	Other	Neutral		+1.99% (vs SPY: +1.26%)

Upcoming Events9 rows

Catalyst ID	Estimated Timing	Estimated Date Start	Estimated Date End	Catalyst	Why It Matters	Ticker Or Theme Specific	Transcript Date	Source Type
HD_de208106	in a few months	2026-10-01	2026-11-30	Return of CEO Ted Decker from temporary medical leave.	Ted Decker's return would restore full leadership stability at the top of the company, which could positively impact investor sentiment and strategic execution.	Ticker	2026-08-18	earnings_transcript
HD_1c0703d7	fiscal 2026	2026-08-19	2027-01-31	Opening of approximately 15 new Home Depot stores and 40 to 50 new SRS branches.	This physical expansion of both retail and Pro-focused distribution networks is crucial for capturing market share and driving revenue growth in key strategic areas.	Ticker	2026-08-18	earnings_transcript
HD_2053adaf	Implied near-term	2026-08-19	2026-12-31	Exclusive launch of USG's ultralight tough gypsum panels in the big-box retail channel.	This exclusive partnership strengthens Home Depot's position as a preferred retailer for Pro building materials, potentially driving increased Pro sales and market share.	Ticker	2026-08-18	earnings_transcript
HD_b565806f	over the course of fiscal 2026	2026-08-16	2027-01-31	Achievement of $400 million cross-sell run rate between Home Depot, SRS, GMS, and HD Supply for fiscal 2026.	This demonstrates successful integration and synergy realization from recent acquisitions, contributing directly to revenue growth and market share gains in the Pro segment.	Ticker	2026-05-19	earnings_transcript
HD_c27b6455	fiscal 2026	2026-02-01	2027-01-31	SRS / GMS integration and Pro expansion targets: management expects SRS organic sales to grow mid-single digits, plans ~40–50 new SRS locations and ~15 new Home Depot stores in fiscal 2026, and to capture cross-sell synergies between Home Depot, SRS and GMS.	Realized SRS/GMS growth and cross-sell execution will drive incremental sales and validate the 'Complex Pro' strategy; success would offset weak DIY demand and support higher revenue, whereas failure to scale cross-sell or slower branch openings would weaken the acquisition rationale and margins.	Ticker	2026-02-24	earnings_transcript
HD_37181843	in 2026	2026-02-25	2026-12-31	Rollout and scale-up of Pro-facing technology and capabilities (AI blueprint takeoffs, projects tool, expanded trade credit, handheld delivery devices, job-site preferences and order-management enhancements) across stores and B2B channels.	These operational rollouts materially influence Pro conversion, average ticket and delivery reliability; faster/broader adoption would boost Pro sales and lifetime value (bull), while slower or flawed rollouts would hamper Pro penetration and ROI from prior investments (bear).	Ticker	2026-02-24	earnings_transcript
HD_0b2bc767	Atlantic hurricane season 2026 (management cited storm activity as a demand driver)	2026-06-01	2026-11-30	Actual storm activity / major hurricane landfalls in Home Depot core regions (Gulf Coast, Florida, Texas) during the 2026 hurricane season that would drive repair/rebuild demand.	Above-normal storm activity would be an immediate sales and margin tailwind (roofing, generators, big-ticket repair/rebuild), while a continued absence of storms would remove an expected seasonal demand baseline and keep comps pressured.	Theme	2026-02-24	earnings_transcript
HD_8e6a3dbd	fiscal 2026	2026-02-01	2027-01-31	Home Depot's fiscal 2026 performance versus guidance: management forecasted total sales growth ~2.5%–4.5%, comps flat to +2%, adjusted diluted EPS flat to +4%, gross margin ~33.1%, and adjusted operating margin ~12.8%–13%.	FY2026 relative to guidance will determine whether acquisition dilution (GMS/SRS), top-line share gains and pricing actions offset macro headwinds; better-than-expected execution would be bullish for revenue, margins and valuation while misses (weaker comps, margin shortfall) would pressure EPS and sentiment.	Ticker	2026-02-24	earnings_transcript
HD_bc88a751	ongoing through 2026 (market sensitivity called out by management)	2026-02-25	2026-12-31	Movement in mortgage rates / housing affordability (management flagged mortgage rates and home prices as key demand drivers).	A sustained decline in mortgage rates and/or moderating home prices that improve affordability would increase housing turnover and discretionary renovation spending (bull for comps and big-ticket growth); persistently high rates would prolong low turnover and pressure demand (bear).	Theme	2026-02-24	earnings_transcript

Prior Earnings Metrics HistoryTable

Prior earnings scorecards