HOME DEPOT, INC.
For the period ended Aug 2, 2026. Filed Aug 25, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 2, 2026 · Filed Aug 25, 2026
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Item 2. Results of Operations
RESULTS OF OPERATIONS
The following table presents the percentage relationship between net sales and major categories in our consolidated statements of earnings.
FISCAL 2026 AND FISCAL 2025 THREE MONTH COMPARISONS
| Three Months Ended | |||||
|---|---|---|---|---|---|
| August 2, 2026 · August 3, 2025 | |||||
| dollars in millions · $ · % of Net Sales · $ · % of Net Sales | |||||
| Net sales | $47,861 | $45,277 | |||
| Gross profit | 16,115 | 33.7% | 15,125 | 33.4% | |
| Operating expenses: | |||||
| Selling, general and administrative | 8,424 | 17.6 | 7,764 | 17.1 | |
| Depreciation and amortization | 852 | 1.8 | 806 | 1.8 | |
| Total operating expenses | 9,276 | 19.4 | 8,570 | 18.9 | |
| Operating income | 6,839 | 14.3 | 6,555 | 14.5 | |
| Interest and other (income) expense: | |||||
| Interest income and other, net | (59) | (0.1) | (25) | (0.1) | |
| Interest expense | 583 | 1.2 | 575 | 1.3 | |
| Interest and other, net | 524 | 1.1 | 550 | 1.2 | |
| Earnings before provision for income taxes | 6,315 | 13.2 | 6,005 | 13.3 | |
| Provision for income taxes | 1,549 | 3.2 | 1,454 | 3.2 | |
| Net earnings | $4,766 | 10.0% | $4,551 | 10.1% | |
Note: Certain percentages may not sum to totals due to rounding.
| Three Months Ended | |||
|---|---|---|---|
| Selected financial and sales data: | August 2,2026 | August 3,2025 | % Change |
| Comparable sales (% change) | 1.7% | 1.0% | N/A |
| Comparable customer transactions (% change) (1) | (1.0)% | (0.4)% | N/A |
| Comparable average ticket (% change) (1) (2) | 2.8% | 1.4% | N/A |
| Customer transactions (in millions) (1) | 443.2 | 446.8 | (0.8)% |
| Average ticket (1) (2) | $92.50 | $90.01 | 2.8% |
| Diluted earnings per share | $4.79 | $4.58 | 4.6% |
(1)Customer transactions and average ticket measures do not include results from HD Supply or SRS.
(2)Average ticket represents the average price paid per transaction and is used by management to monitor the performance of the Company, as it represents a primary driver in measuring sales performance.
Sales
We assess our sales performance by evaluating both net sales and comparable sales.
Net Sales. Net sales for the second quarter of fiscal 2026 were $47.9 billion, an increase of 5.7% from $45.3 billion for the second quarter of fiscal 2025. The increase in net sales for the second quarter of fiscal 2026 was primarily driven by sales from GMS, which was acquired on September 4, 2025 and contributed $1.4 billion of incremental net sales during the second quarter of fiscal 2026, as well as the impact of a positive comparable sales environment. Net sales also increased due to sales from our acquisition of Mingledorff’s as well as sales from new stores and branches.
Online sales represented 16.6% of net sales during the second quarter of fiscal 2026 and increased by 11.0% compared to the second quarter of fiscal 2025. Online sales consist of sales of products generated through websites and mobile applications and do not include results from HD Supply or SRS.
| Fiscal Q2 2026 Form 10-Q | 16 |
|---|
A weaker U.S. dollar compared to the second quarter of fiscal 2025 positively impacted net sales by $105 million during the second quarter of fiscal 2026.
Comparable Sales. Comparable sales is a measure that highlights the performance of our existing locations and websites by measuring the change in net sales for a period over the comparable prior period of equivalent length. Comparable sales includes sales at locations, physical and online, open greater than 52 weeks (including remodels and relocations) and excludes closed stores. Acquisitions are typically included in comparable sales after they have been owned for more than 52 weeks. Comparable sales is intended only as supplemental information and is not a substitute for net sales presented in accordance with GAAP. The method of calculating comparable sales varies across the retail industry. As a result, our method of calculating comparable sales may not be the same as similarly titled measures reported by other companies.
Total comparable sales for the second quarter of fiscal 2026 increased 1.7%, primarily reflecting a 2.8% increase in comparable average ticket, partially offset by a 1.0% decrease in comparable customer transactions compared to the second quarter of fiscal 2025. Foreign exchange rates positively impacted comparable sales by approximately 25 basis points for the second quarter of fiscal 2026. Our comparable sales results reflect customer engagement with smaller repair and maintenance projects, despite the impact of consumer uncertainty and housing affordability pressure on home improvement demand.
During the second quarter of fiscal 2026, our Storage & Organization, Electrical, Hardware, Power, Plumbing, Indoor Garden, Kitchen & Blinds, Paint, Bath, Outdoor Garden, Building Materials, Flooring, and Millwork merchandising departments within our Primary segment posted positive comparable sales compared to the second quarter of fiscal 2025.
Gross Profit
Gross profit for the second quarter of fiscal 2026 increased 6.5% to $16.1 billion from $15.1 billion for the second quarter of fiscal 2025. Gross profit as a percentage of net sales, or gross profit margin, was 33.7% for the second quarter of fiscal 2026 compared to 33.4% for the second quarter of fiscal 2025. The increase in gross profit margin during the second quarter of fiscal 2026 reflects the benefit from IEEPA tariff refunds, largely offset by incremental cost pressures related to fuel, energy, and other product input costs, as well as the inclusion of GMS in our consolidated results.
Operating Expenses
Our operating expenses are composed of SG&A and depreciation and amortization.
Selling, General & Administrative. SG&A for the second quarter of fiscal 2026 increased $660 million, or 8.5%, to $8.4 billion from $7.8 billion for the second quarter of fiscal 2025. As a percentage of net sales, SG&A was 17.6% for the second quarter of fiscal 2026 compared to 17.1% for the second quarter of fiscal 2025, primarily reflecting higher operating costs relative to comparable sales performance.
Depreciation and Amortization. Depreciation and amortization for the second quarter of fiscal 2026 increased $46 million, or 5.7%, to $852 million from $806 million for the second quarter of fiscal 2025. As a percentage of net sales, depreciation and amortization was 1.8% for both the second quarter of fiscal 2026 and 2025.
Interest and Other, net
Interest and other, net was $524 million for the second quarter of fiscal 2026 compared to $550 million for the second quarter of fiscal 2025. As a percentage of net sales, interest and other, net was 1.1% for the second quarter of fiscal 2026 compared to 1.2% for the second quarter of fiscal 2025, and reflects higher interest income due to interest received from IEEPA tariff refunds during the second quarter of fiscal 2026.
Provision for Income Taxes
Our combined effective income tax rate was 24.5% for the second quarter of fiscal 2026 compared to 24.2% for the second quarter of fiscal 2025.
Diluted Earnings per Share
Diluted earnings per share were $4.79 for the second quarter of fiscal 2026 compared to $4.58 for the second quarter of fiscal 2025. The increase in diluted earnings per share was primarily driven by higher net earnings during the second quarter of fiscal 2026.
| Fiscal Q2 2026 Form 10-Q | 17 |
|---|
FISCAL 2026 AND FISCAL 2025 SIX MONTH COMPARISONS
| Six Months Ended | |||||
|---|---|---|---|---|---|
| August 2, 2026 · August 3, 2025 | |||||
| dollars in millions · $ · % of Net Sales · $ · % ofNet Sales | |||||
| Net sales | $89,626 | $85,133 | |||
| Gross profit | 29,896 | 33.4% | 28,584 | 33.6% | |
| Operating expenses: | |||||
| Selling, general and administrative | 16,383 | 18.3 | 15,294 | 18.0 | |
| Depreciation and amortization | 1,693 | 1.9 | 1,602 | 1.9 | |
| Total operating expenses | 18,076 | 20.2 | 16,896 | 19.8 | |
| Operating income | 11,820 | 13.2 | 11,688 | 13.7 | |
| Interest and other (income) expense: | |||||
| Interest income and other, net | (66) | (0.1) | (49) | (0.1) | |
| Interest expense | 1,194 | 1.3 | 1,190 | 1.4 | |
| Interest and other, net | 1,128 | 1.3 | 1,141 | 1.3 | |
| Earnings before provision for income taxes | 10,692 | 11.9 | 10,547 | 12.4 | |
| Provision for income taxes | 2,637 | 2.9 | 2,563 | 3.0 | |
| Net earnings | $8,055 | 9.0% | $7,984 | 9.4% | |
Note: Certain percentages may not sum to totals due to rounding.
| Six Months Ended | |||
|---|---|---|---|
| Selected financial and sales data: | August 2,2026 | August 3,2025 | % Change |
| Comparable sales (% change) | 1.2% | 0.4% | N/A |
| Comparable customer transactions (% change) (1) | (1.2)% | (0.5)% | N/A |
| Comparable average ticket (% change) (1) (2) | 2.5% | 0.7% | N/A |
| Customer transactions (in millions) (1) | 834.3 | 841.6 | (0.9)% |
| Average ticket (1) (2) | $92.62 | $90.34 | 2.5 |
| Diluted earnings per share | $8.09 | $8.03 | 0.7% |
(1)Customer transactions and average ticket measures do not include results from HD Supply or SRS.
(2)Average ticket represents the average price paid per transaction and is used by management to monitor the performance of the Company, as it represents a primary driver in measuring sales performance.
Sales
We assess our sales performance by evaluating both net sales and comparable sales.
Net Sales. Net sales for the first six months of fiscal 2026 were $89.6 billion, an increase of 5.3% from $85.1 billion for the first six months of fiscal 2025. The increase in net sales for the first six months of fiscal 2026 was primarily driven by sales from GMS which contributed approximately $2.8 billion of incremental net sales during the first six months of fiscal 2026, as well as the impact of a positive comparable sales environment. Net sales also increased due to sales from new stores and branches, as well as our acquisition of Mingledorff’s.
Online sales represented 16.5% of net sales during the first six months of fiscal 2026 and increased by 10.8% compared to the first six months of fiscal 2025.
A weaker U.S. dollar compared to the first six months of fiscal 2025 positively impacted net sales by $325 million during the first six months of fiscal 2026.
Comparable Sales. Total comparable sales for the first six months of fiscal 2026 increased 1.2%, primarily reflecting a 2.5% increase in comparable average ticket, partially offset by a 1.2% decrease in comparable customer transactions compared to the first six months of fiscal 2025. Foreign exchange rates positively impacted comparable sales by approximately 40 basis points for the first six months of fiscal 2026. Our comparable sales
| Fiscal Q2 2026 Form 10-Q | 18 |
|---|
results reflect customer engagement with smaller repair and maintenance projects, despite the impact of consumer uncertainty and housing affordability pressure on home improvement demand.
During the first six months of fiscal 2026, our Storage & Organization, Hardware, Power, Electrical, Plumbing, Indoor Garden, Bath, Paint, Kitchen & Blinds, and Outdoor Garden merchandising departments within our Primary segment posted positive comparable sales compared to the first six months of fiscal 2025.
Gross Profit
Gross profit for the first six months of fiscal 2026 increased 4.6% to $29.9 billion from $28.6 billion for the first six months of fiscal 2025. Gross profit as a percentage of net sales, or gross profit margin, was 33.4% for the first six months of fiscal 2026 compared to 33.6% for the first six months of fiscal 2025. The decrease in gross profit margin during the first six months of fiscal 2026 reflects the inclusion of GMS in our consolidated results, as well as incremental cost pressures related to fuel, energy, and other product input costs, largely offset by the benefit from IEEPA tariff refunds.
Operating Expenses
Our operating expenses are composed of SG&A and depreciation and amortization.
Selling, General & Administrative. SG&A for the first six months of fiscal 2026 increased $1.1 billion, or 7.1%, to $16.4 billion from $15.3 billion for the first six months of fiscal 2025. As a percentage of net sales, SG&A was 18.3% for the first six months of fiscal 2026 compared to 18.0% for the first six months of fiscal 2025, primarily reflecting higher operating costs relative to comparable sales performance.
Depreciation and Amortization. Depreciation and amortization for the first six months of fiscal 2026 increased $91 million, or 5.7%, to $1.7 billion from $1.6 billion for the first six months of fiscal 2025. As a percentage of net sales, depreciation and amortization was 1.9% for the first six months of both fiscal 2026 and fiscal 2025.
Interest and Other, net
Interest and other, net was $1.1 billion for the first six months of both fiscal 2026 and fiscal 2025. As a percentage of net sales, interest and other, net was 1.3% for the first six months of both fiscal 2026 and fiscal 2025.
Provision for Income Taxes
Our combined effective income tax rate was 24.7% for the first six months of fiscal 2026 compared to 24.3% for the first six months of fiscal 2025.
Diluted Earnings per Share
Diluted earnings per share were $8.09 for the first six months of fiscal 2026, compared to $8.03 for the first six months of fiscal 2025. The increase in diluted earnings per share was primarily driven by higher net earnings during the first six months of fiscal 2026.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.