HD · 10-Q · 2026Q3 · Full report
Gross Margin Drivers
HOME DEPOT, INC. · 2026-08-25 · Importance 63 · Surprise 50 · In source text
Second-quarter gross profit increased 6.5% to $16.1 billion from $15.1 billion, and gross margin expanded to 33.7% from 33.4%. The margin expansion reflected IEEPA tariff refunds, partly offset by higher fuel, energy, and other product input costs and the inclusion of GMS. First-half gross profit increased 4.6% to $29.9 billion, but gross margin declined to 33.4% from 33.6%. The first-half decline was driven by GMS and input-cost pressures, partly offset by IEEPA tariff refunds.
Key facts
- Gross profit for the three months ended August 2, 2026: $16,115 million; gross profit margin 33.7%. source
- Gross profit for the six months ended August 2, 2026: $29,896 million; gross profit margin 33.4%. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | — | Gross profit for the three months ended August 2, 2026: $16,115 million; gross profit margin 33.7%. |
| margin | positive | realized | — | Gross profit for the six months ended August 2, 2026: $29,896 million; gross profit margin 33.4%. |