HD · 10-Q · 2026Q2 · Full report

Revenue Performance and Mix

HOME DEPOT, INC. · 2026-05-27 · Importance 77 · Surprise 82 · No source text

The year-over-year sales increase was materially influenced by acquired specialty distribution and branch network contributions; management notes that GMS contributed $1.3 billion of net sales in the quarter. Other net sales (SRS non-reportable operating segments) increased to $4.0 billion from $2.6 billion, reflecting the inclusion and expansion of specialty trade distribution lines (roofing, interior & construction, landscape, pool). Core Primary segment product lines (Building Materials, Décor, Hardlines) continued to generate the majority of sales but the addition of specialty distribution meaningfully shifted mix. Management attributes part of the consolidated gross profit margin decline to the inclusion of these SRS operations.

Key facts

• Net sales for three months ended May 3, 2026: $41,765 million. source
• Operating income for three months ended May 3, 2026: $4,981 million. source
• Deferred revenue for products and services at May 3, 2026: $1.6 billion. source
• Net earnings for three months ended May 3, 2026: $3,289 million. source
• Net sales – products for three months ended May 3, 2026: $40,436 million; net sales – services: $1,329 million. source
• Diluted earnings per share for three months ended May 3, 2026: $3.30. source
• Performance obligations for unredeemed gift cards at May 3, 2026: $1.1 billion. source
• Provision for income taxes for three months ended May 3, 2026: $1,088 million; combined effective income tax rate: 24.9% for the first quarter of fiscal 2026. source

Impact estimates