Home Depot delivered better-than-expected fiscal second-quarter results Tuesday, but the home improvement giant’s own executives admit the housing market remains “frozen” — a signal worth watching for anyone invested in retail, housing, or consumer discretionary stocks. The company posted revenue of $47.9 billion, up 5.7% from a year earlier, and net income climbed to $4.77 billion, or $4.79 per share, compared with $4.55 billion a year ago. Adjusted earnings per share came in at $4.92, topping Wall Street expectations on both the top and bottom lines.
The standout number was comparable sales, which rose 1.7% — beating the 0.9% analysts had penciled in and marking Home Depot’s best comp performance since the third quarter of fiscal 2022. CFO Richard McPhail told CNBC the company is seeing “broad engagement” across its pro and do-it-yourself customer segments and is actively taking market share, even as bigger-ticket renovation projects remain on hold. Despite the beat, Home Depot reaffirmed rather than raised its full-year guidance, still projecting total sales growth of 2.5% to 4.5% and operating margin between 12.4% and 12.6%. Management pointed to tariff refunds helping offset rising fuel and input costs, while confirming that CEO Ted Decker is on temporary medical leave, with McPhail and EVP Ann-Marie Campbell splitting his responsibilities in the interim.
The takeaway for investors: Home Depot’s ability to grow sales and beat estimates even with mortgage rates elevated and housing turnover stalled shows real resilience, and that bodes well for how the stock trades into an eventual housing rebound. But the decision not to raise guidance despite the beat tells you management sees continued caution among big-project customers — watch for confirmation or contradiction of that trend when Lowe’s, Target, and Walmart report results this week. If you’re weighing an entry into home-improvement retail names, Home Depot’s pro-customer strength and consistent capital investment make it the steadier of the group, but don’t expect a guidance raise or a housing-driven breakout until mortgage rates meaningfully retreat.
