HD · 10-Q · 2026Q3 · Full report

Pricing and Input Costs

HOME DEPOT, INC. · 2026-08-25 · Importance 25 · Surprise 32

Home Depot’s second-quarter gross margin benefited from IEEPA tariff refunds but was largely offset by higher fuel, energy, and other product input costs. For the first six months of fiscal 2026, fuel, energy, and other product input cost pressures contributed to a decline in gross margin to 33.4% from 33.6% in the prior-year period. The tariff refunds partially offset these cost pressures during the six-month period. The disclosed $685 million reduction in cost of goods sold from tariff refunds was material relative to the Company’s revenue threshold.