EARNINGS RESULTS · Q2 2026

Home Depot Q2 2026: Revenue Up 5.71%, Operating Margin 14.29%

Results for the quarter ended 2026-08-02 bring the business drivers and cash after investment into focus. Quarterly free cash flow was $4.51 bn. The dated assessment on 2026-10-08 was wait at a reference price of $285.77.

Home Depot · HDPublished October 8, 2026Quarter ended August 2, 2026

Q2 2026: What the Quarter Delivered

Revenue: $47.86 bn
Revenue growth YoY: 5.7%
Operating income: $6.84 bn
Operating margin: 14.3%
Diluted EPS, GAAP: $4.79

Home Depot reported $47.86 bn of revenue in Q2 2026. Revenue rose 5.71% from the comparable prior-year quarter. Operating profit was $6.84 bn, with an operating margin of 14.29%. Reported diluted EPS was $4.79.

The latest fiscal quarter delivered higher sales, operating income and GAAP earnings than the comparable prior-year period.

How Revenue Reached Operating Profit

The quarter's revenue and operating result imply an operating margin of 14.29%: $14.29 of operating profit for every $100 of revenue, before interest and tax.

Margin pressure is the central weakness in the reported results.

What the Reported Earnings Include

Other non-operating income: $0 bn
GAAP net income: $4.77 bn
Diluted weighted-average shares: 1 bn shares

Q2 2026 GAAP net income was $4.77 bn. Other non-operating income was $0 bn.

GAAP earnings remain distinct from our normalized scenario earnings. The model retains depreciation, stock compensation and acquisition amortization, while its tax and recurring interest assumptions are editorial judgments rather than reported guidance.

Cash Left After Investment

Operating cash flow: $18.78 bn
OCF less cash PPE purchases, plus PPE sales: $15.1 bn
Quarterly operating cash flow: $5.39 bn
Cash purchases of productive assets, including intangibles: $0.88 bn
Quarterly OCF less productive-asset cash purchases: $4.51 bn

In Q2 2026, operating cash flow of $5.39 bn less cash capital expenditure of $0.88 bn left $4.51 bn of free cash flow. Operations funded cash investment and left cash after that spending.

The Verdict Recorded on 2026-10-08

Verdict Invest recorded wait on 2026-10-08, using a reference price of $285.77 dated 2026-10-07. This assessment relates to the Q2 2026 results, with a 12-month horizon and stated validity through 2026-11-07.

Confirmation to watch: Retail demand stabilization accompanied by firmer consolidated operating margins.
Confirmation to watch: Professional distribution expansion translating into earnings and cash generation rather than sales alone.
Confirmation to watch: Sustained cash generation supporting debt reduction and easing recurring interest costs.
Risk to this assessment: Persistent margin deterioration despite expanding consolidated sales.
Risk to this assessment: Acquisition integration absorbing cash without delivering durable operating profit.
Risk to this assessment: Weakening cash generation alongside rising borrowing or refinancing pressure.