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Home Depot beats Q2 estimates as margins and small projects hold up
Home Depot posted $47.9 billion in revenue, up 5.7% year over year, and reaffirmed guidance calling for about 3.5% revenue growth and 2% EPS growth.
Home Depot’s strong Q2 results helped lift momentum in the stock, with the company reporting revenue growth despite a tepid housing market, MarketBeat Ratings said. The quarter also reflected a mix of pressures and offsets, including the effect of IEEPA tariff refunds and higher input costs.
According to MarketBeat data, Home Depot’s revenue rose 5.7% to $47.9 billion, about $660 million better than expected. The outlet attributed the outperformance to solid same-store comps, which were up 1.7%, and to higher ticket averages, with small projects described as a surprising strength that helped support margins.
Profitability also came in above expectations, with net income of $4.8 billion up about 5% year over year, and adjusted earnings per share of $4.92. MarketBeat Ratings said adjusted EPS beat consensus by roughly 400 basis points, while noting that costs rising could pressure margins even as operational performance and tariff refunds helped offset some of the headwinds.
Home Depot reaffirmed its outlook, targeting about 3.5% revenue growth, 1% comp store growth, around 2% EPS growth, and 15 new stores. MarketBeat Ratings added that EPS growth is underpinned by tariff refunds that are expected to continue offs, alongside leverage from new stores and consumer strength.