HD · 10-Q · 2026Q3

HOME DEPOT, INC.

Filed 2026-08-25 · Consumer · View original filing on EDGAR

Ranked Events

• Gross Margin DriversImportance 63 · Surprise 50
  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,…
• Liquidity and Cash PositionImportance 59 · Surprise 48
  Cash and cash equivalents increased to $2.085 billion at August 2, 2026 from $1.389 billion at February 1, 2026. Operating cash flow was $11.422 billion in the first six months of fiscal 2026, up from $8.968 billion in…
• Capital AllocationImportance 58 · Surprise 42
  During the first six months of fiscal 2026, operating cash flow of $11.4 billion and cash on hand funded $4.6 billion of dividends, $3.0 billion of long-term debt repayments, $1.7 billion of capital expenditures, and…
• Capital Return ProgramImportance 57 · Surprise 50
  Home Depot increased its quarterly cash dividend by 1.3%, from $2.30 to $2.33 per share, in February 2026. The company paid $4.6 billion of cash dividends during the first six months of fiscal 2026. Share repurchases…
• Outstanding IndebtednessImportance 57 · Surprise 50
  At August 2, 2026, Home Depot had $4.2 billion of commercial paper outstanding at a weighted-average interest rate of 3.8%, compared with $4.5 billion at 3.7% at February 1, 2026. The commercial paper program permits…
• Digital Channel and Delivery GrowthImportance 54 · Surprise 40
  Online sales represented 16.6% of second-quarter net sales and increased 11.0% year over year. For the first six months, online sales represented 16.5% of net sales and increased 10.8% year over year. Online sales…
• Acquisition / Partnership / DivestitureImportance 53 · Surprise 60
  SRS completed the acquisition of Mingledorff’s on May 11, 2026, for preliminary cash consideration of approximately $1.1 billion. Mingledorff’s distributes HVAC equipment, parts, and supplies across the southeastern…
• Supply Chain Tariff ImpactImportance 53 · Surprise 60
  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…
• Inventory Levels and TurnoverImportance 49 · Surprise 32
  Merchandise inventories were $26.8 billion at August 2, 2026, compared with $25.8 billion at February 1, 2026. The inventory turnover ratio was 4.5 times at the end of the second quarter, down from 4.6 times in the…
• Operating Expense TrendsImportance 49 · Surprise 32
  Second-quarter SG&A increased $660 million, or 8.5%, to $8.4 billion, while SG&A as a percentage of sales increased to 17.6% from 17.1%. First-half SG&A increased $1.1 billion, or 7.1%, to $16.4 billion, and the ratio…
• Revenue Performance and MixImportance 49 · Surprise 32
  Second-quarter fiscal 2026 net sales increased 5.7% year over year to $47.9 billion from $45.3 billion, driven primarily by $1.4 billion of incremental GMS sales, positive comparable sales, Mingledorff’s, and new…
• Geographic Market CommentaryImportance 47 · Surprise 22
  The United States generated $43.9 billion of second-quarter net sales, up from $41.7 billion in the prior-year quarter. Sales outside the United States reached $4.0 billion, compared with $3.5 billion a year earlier.…
• Capital Expenditure ProgramImportance 46 · Surprise 42
  Home Depot invested $1.7 billion in capital expenditures during the first six months of fiscal 2026. Management plans approximately $4 billion of fiscal 2026 capital expenditures, equivalent to about 2.5% of projected…
• Investing ActivitiesImportance 40 · Surprise 42
  Net cash used in investing activities increased by $1.1 billion in the first six months of fiscal 2026 compared with the first six months of fiscal 2025. The increase primarily resulted from higher cash paid for…
• Operating Cash Flow TrendsImportance 38 · Surprise 24
  Net cash provided by operating activities increased by $2.5 billion in the first six months of fiscal 2026 versus the comparable fiscal 2025 period. The increase primarily reflected changes in working capital,…
• Income Tax Rate ChangesImportance 36 · Surprise 14
  The second-quarter effective income tax rate increased to 24.5% from 24.2% in the prior-year quarter. The first-half effective tax rate increased to 24.7% from 24.3%. The higher first-half rate applied to $10.692…
• Macroeconomic Consumer PressureImportance 31 · Surprise 32
  Home Depot reported that consumer uncertainty and housing affordability pressure continued to affect home improvement demand in the second quarter and first six months of fiscal 2026. Customer engagement remained…
• Store Count and ExpansionImportance 31 · Surprise 42
  Home Depot opened three new stores in the United States during the second quarter of fiscal 2026. The total store count reached 2,364 as of August 2, 2026. Canada and Mexico accounted for 325 stores, or 13.7% of the…
• ROIC / Return on Invested CapitalImportance 25 · Surprise 32
  Trailing-twelve-month ROIC declined to 24.8% from 27.2% a year earlier, an 8.8% decrease. NOPAT decreased to $15.907 billion from $16.412 billion, while average debt and equity increased to $64.124 billion from $60.305…
• Pricing and Input CostsImportance 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…

Revenue by Product (in millions)

Revenue by Geography (in millions)