Q2 2026 The Home Depot, Inc. Earnings Call Transcript
Key Points
- Second quarter sales increased 5.7% to $47.9 billion, with comp sales up 1.7%, exceeding expectations.
- Broad-based demand across 13 of 16 merchandising departments, including strength in Pro and DIY categories.
- Pro segment posted positive comps and outperformed DIY, driven by investments in the Pro ecosystem.
- Online sales grew 11% year-over-year, marking the fifth consecutive quarter of double-digit growth.
- Launched Express Delivery nationwide, offering delivery on tens of thousands of products in three hours or less.
- Consumer uncertainty and housing affordability continue to pressure demand for larger home improvement projects.
- Gross margin faced incremental cost pressures from fuel, energy, and other product input costs, partially offset by tariff refunds.
- Operating margin declined to 14.3% from 14.5% in the prior year, with operating expenses up 45 basis points as a percentage of sales.
- Inventory levels increased by approximately $2 billion year-over-year, and inventory turns decreased to 4.5 times from 4.6 times.
- Return on invested capital decreased to 24.8% from 27.2% in the second quarter of fiscal 2025.
Greetings, and welcome to The Home Depot second quarter 2026 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Isabel Janci. Please go ahead.
Thank you, Christine, and good morning, everyone. Welcome to Home Depot's second quarter 2026 earnings call. Joining us on our call today are Richard McPhail, Executive Vice President and Chief Financial Officer; Ann-Marie Campbell, Senior Executive Vice President; and Billy Bastek, Executive Vice President of Merchandising.
Following our prepared remarks, the call will be open for questions. Questions will be limited to analysts and investors. (Event Instructions) If we are unable to get to your question during the call, please call our Investor Relations department at (770) 384-2387.
Before I turn the call over to Richard, let me remind you that today's press release and presentations made by our executives
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