No formal specific quarterly guidance ranges were provided for the third quarter.
Annual guidance
Comp sales
Range between flat to 2% growth.
Total sales growth
Between approximately 2.5% and 4.5%.
Gross margin
Approximately 33.1%.
Operating margin
Approximately 12.4% to 12.6%, with adjusted operating margin of approximately 12.8% to 13%.
Diluted EPS
Increase approximately flat to 4% compared to fiscal 2025.
Outlook
Consumer demand
Customers continue to engage in smaller repair and maintenance projects, while larger discretionary projects remain under pressure due to consumer uncertainty and housing affordability.
Cost pressures
The company experienced incremental cost pressures related to fuel, energy, and other product inputs, alongside changes in tariffs.
Housing turnover
Housing turnover remains at historical lows with no immediate sign of an inflection point, though low turnover has persisted for four years.
Store expansion
The company plans to open approximately 15 new stores and 40 to 50 new SRS branches during fiscal 2026.
Dombey's summary of the The Home Depot Q2 FY2026 earnings call held Aug 18, 2026, written from the call itself. Every figure on this page was checked against what was said on the call, and quoted lines are management's own words; we do not add estimates or prices. The tone score is our read of management's wording, guidance and answers. Check figures against the company's SEC filings before acting. This is research, not investment advice.
