HD · 10-Q · 2026Q3 · Full report

Supply Chain Tariff Impact

HOME DEPOT, INC. · 2026-08-25 · Importance 53 · Surprise 60 · No source text

Home Depot is monitoring the U.S. Supreme Court decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA), related litigation, and additional tariff implementation. During the second quarter of fiscal 2026, the Company received approximately $730 million of IEEPA tariff refunds as of August 2, 2026, representing the vast majority of expected refunds. Approximately $685 million was recognized as a reduction of cost of goods sold, with the remainder reducing inventory cost, nearly all within the Primary segment. Management stated that ongoing tariff and trade policy discussions could affect future-period results of operations and cash flows, but their ultimate impact cannot yet be predicted with certainty.

Key facts

• During the second quarter of fiscal 2026, Home Depot began receiving IEEPA tariff refunds and as of August 2, 2026 had received approximately $730 million in IEEPA tariff refunds. source
• Approximately $685 million of IEEPA tariff refunds were recognized as a reduction of cost of goods sold, with the remaining amount recorded as a reduction of inventory cost, nearly all within the Primary segment. source
• Interest received in connection with the IEEPA tariff refunds was recognized within interest income and other, net on the consolidated statement of earnings. source

Impact estimates