HD Stock Gains On Q2 Beat: Home Depot Reaffirms Guidance, CFO Says Tariff Refunds Help 'Maintain Value'

Home Depot reported fiscal second-quarter earnings per share of $4.92, above the $4.73 analyst estimate, while revenue reached $47.86 billion, exceeding the $47.27 billion consensus, according to Koyfin data. Shares of Home Depot (HD) rose 1.8% in premarket trading despite broader-market weakness and escalating U.S.-Iran tensions involving the Strait of Hormuz. The company also announced the nationwide rollout of Express Delivery, allowing customers to receive items within three hours without a subscription or membership. Home Depot reaffirmed its fiscal 2026 outlook, which calls for total sales growth of 2.5% to 4.5% and an operating margin of 12.4% to 12.6%. The guidance includes tariff refunds that are “expected to partially offset unplanned fuel, energy, and other product input costs.” CFO Richard McPhail told CNBC that the refunds are helping the company “maintain value” despite higher costs elsewhere. However, he said Home Depot remains in “frozen housing market conditions.” Higher mortgage rates, limited housing turnover and economic uncertainty continue to weigh on larger home-improvement projects, particularly those connected to home purchases. McPhail said broader economic uncertainty contributed to the decision to maintain, rather than raise, the outlook. He described customers as “a healthy cohort,” although demand for major projects has not recovered. HD was among Stocktwits’ top trending tickers. Retail sentiment was “extremely bullish” over the prior day, while message volume increased by more than 1,000% in 24 hours. Some investors questioned whether the premarket gains would hold during regular trading, citing interest rates, fuel prices and the unchanged guidance. HD has declined 1.6% this year and nearly 15% over the past 12 months. Investors will weigh the earnings beat and delivery expansion against persistent housing pressure, input-cost risks and the absence of an upgraded forecast.