HD Stock Gains On Q2 Beat: Home Depot Reaffirms Guidance, CFO Says Tariff Refunds Help 'Maintain Value'

• Home Depot reported fiscal second-quarter earnings and revenue above Wall Street estimates.
• Home Depot reaffirmed its fiscal 2026 guidance, including sales growth of 2.5% to 4.5% and an operating margin of 12.4% to 12.6%.
• The company said tariff refunds are “expected to partially offset unplanned fuel, energy, and other product input costs.”

Shares of Home Depot (HD) gained in pre-market trade on Tuesday after the company’s second-quarter earnings and revenue beat Wall Street expectations and it announced the nationwide rollout of ‘Express Delivery’.

The company reported earnings per share (EPS) of $4.92, beating analysts’ expectations of $4.73 per share, as per Koyfin data. Revenue came in at $47.86 billion, also ahead of the $47.27 billion consensus estimate.

Home Depot also reaffirmed its fiscal 2026 outlook. The company continues to expect total sales growth of 2.5% to 4.5% for the year, with operating margin between 12.4% and 12.6%.

Home Depot said its guidance includes tariff refunds that are “expected to partially offset unplanned fuel, energy, and other product input costs.” In a CNBC report, Chief Financial Officer Richard McPhail said those refunds are allowing the company to “maintain value” despite higher costs in other areas.

HD stock gained 1.8% in pre-market trade despite weakness in the broader market amid escalating tensions between the U.S. and Iran, especially over the Strait of Hormuz. 

‘Frozen Housing Market Conditions’ Prevented Guidance Hike

McPhail said the company continued to operate in “frozen housing market conditions.” Higher mortgage rates, limited housing turnover and economic uncertainty have continued to weigh on large home-improvement projects, particularly those tied to home purchases.

McPhail said uncertainty across the broader economy contributed to the decision to maintain the existing outlook. He also said the company’s customers remain “a healthy cohort,” although demand for larger projects has not yet recovered.

Alongside its earnings report, Home Depot announced the nationwide rollout of ‘Express Delivery’, allowing customers to receive items within three hours without a subscription or membership.

Will HD Stock Hold Onto Gains?

HD stock was among the top trending tickers on Stockwits at the time of writing, with retail sentiment around the home improvement brand trending in ‘extremely bullish’ territory over the past day. Chatter remained at ‘high’ levels, with platform data showing a message volume uptick of over 1,000% in the last 24 hours.

While most retail investors were bullish, some questioned whether the gains would hold once regular trading began. One trader said that higher interest rates and fuel prices could pressure the stock and pointed to Home Depot’s decision to reaffirm rather than raise its guidance.

HD stock has fallen 1.6% this year and nearly 15% in the last 12 months.

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