HD US S&P 500DJIARussell 1000 Earnings call
The Home Depot (HD) · Q2 2026 results and valuation
Share price: $351.31 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q2 2027 · published 18 Aug 2026 and 19 May 2026
Net income up 44.9% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+44.9%
Net income vs Q1 2026
Outlook given
Net income 4.77B vs 3.29B
Revenue +14.6%
Against the same quarter last year (Q2 2025) it is +4.7% — part of the move on last quarter is seasonal.
2 · How management spoke
Typical
Less upbeat than 51% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
The Home Depot expects total sales growth of approximately 2.5% and comparable sales growth of between flat to 2% as it seeks to grow market share.
Valuation
Is The Home Depot undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-02-01), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 1.5% growth a year (3-year revenue growth), the model's fair value is $148.07 a share — the stock trades 137% above it. Today's price assumes 12.6% growth a year.
Current price
$351.31
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+12.6% for 10 yrs
Fair value / share
$148.07
Buy below
$111.05
Price vs fair value
Overvalued 137%
Price vs buy-below price
Overvalued >200%
Management expects
Sales +2.5% · from the Q2 2026 report: “The company expects total sales growth of between approximately 2.5% and comparable sales growth of between flat to 2% as it seeks to grow market share.”
A guidance figure for sales, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance
The company expects total sales growth of between approximately 2.5% and comparable sales growth of between flat to 2% as it seeks to grow market share.
Source quote
“We expect to continue to grow our market share and for our comp sales to range between flat to 2% growth, with total sales growth of between approximately 2.5%...”
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Guidance
The company expects net interest expense of approximately $2.3 billion, which impacts the projected cost of capital for the period.
Source quote
“We expect net interest expense of approximately $2.3 billion.”
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Figure
Second-quarter sales rose 5.7% from the same period last year to reach $47.9 billion.
Source quote
“Sales for the second quarter were $47.9 billion, an increase of 5.7% from the same period last year.”
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Fading
Outdoor power equipment saw growth in the second quarter, whereas the first quarter saw the Pro segment outperforming the DIY segment across multiple categories.
Source quote
“We saw strength in DIY across many spring-related categories, including live goods, outdoor power equipment, patio, grills and storage. During the first quarter, Pro posted positive comps and outperformed DIY. And for Pro, we saw strength across many Pro-heavy categories like power, pipe and fittings, water heaters, fasteners and paint.”
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Fading
The adjusted operating margin decreased from 13.2% in the first quarter to 12.3% in the second quarter after excluding $171 million in intangible asset amortization.
Source quote
“Excluding the intangible asset amortization in the quarter, our adjusted operating margin for the first quarter was 12.3% compared to 13.2%... In the quarter, pretax intangible asset amortization was $171 million. Interest and other expense for the first quarter increased by $13 million to...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Ann and I are supported by an exceptional leadership team and a dedicated Board and together, we are wholly focused on executing our strategy and winning in our market.”
“RUCO has driven strong Pro loyalty with us for decades, and we are excited to expand their product lineup across our stores.”
“We believe that we will continue to grow market share as a result of our competitive advantages and ongoing investments by delivering the best experience in home improvement.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-08-02)
| Metric | Q2 2026period end 2026-08-02 | Q1 2026period end 2026-05-03 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 47.86B | 41.77B | +14.6% | 45.28B | +5.7% |
| Gross profit | 16.11B | 13.78B | +16.9% | 15.12B | +6.5% |
| Operating income | 6.84B | 4.98B | +37.3% | 6.55B | +4.3% |
| Net income | 4.77B | 3.29B | +44.9% | 4.55B | +4.7% |
| EPS | 4.79 | 3.30 | +45.2% | 4.58 | +4.6% |
| P/E today 19.7 | 23.2 | 23.0 | +0.2 | 25.4 | −2.2 |
Topics
Most discussed now
- Ann and I are supported by an exceptional leadership team and a dedicated Board and together, Home Depot is wholly focused...
- In terms of its interconnected experience, Home Depot is making progress on a multitude of initiatives including delivery.
- Home Depot has seen greater associate engagement, better customer satisfaction scores and stronger sales.
- In the second quarter, Home Depot saw a broader engagement with 13 of its 16 merchandising departments posting positive comps, including...
- Home Depot's underlying gross margin performance was in line with its expectations.
Faded since Q1 2026
- Dropped Home Depot continues to focus on elevating the shopping experience across all stores and online by optimizing fulfillment options.
- Fading As Ann will detail in a moment, Home Depot's associates are providing excellent customer service.
- Fading The underlying demand in its business was relatively similar to what Home Depot saw throughout fiscal 2025 despite greater consumer…
- Fading Home Depot is also moving more store tasking to its merchandising execution team.
Latest announcements
Official filings, newest first.
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Articles or bylaws amended; Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Articles or bylaws amended; Other events · SEC 8-K
- Regulation FD disclosure · SEC 8-K