The Home Depot, Inc. · Q2 FY2026 call

Before turning to our results, we want to touch on Ted’s temporary medical leave of absence, which we announced last week. […] Ann and I are supported by an exceptional leadership team and a dedicated board, and together we are wholly focused on executing our strategy and winning in our market.

Our second quarter results exceeded our expectations and our teams did a great job executing throughout a dynamic environment.

I’m pleased to announce that based on our first half results, 100% of our stores qualified for Success Sharing, our profit sharing program for hourly associates.

return on invested capital was 24.8 percent, down from 27.2 percent in the second quarter of fiscal 2025.

we saw 13 categories of our 16 positive comp. […] if you look at our top 20 businesses across the store that drove a positive performance, only three 3 of those 20 were actually in the seasonal business.

we received $730 million in tariff refunds during the quarter. We received all those right around the end of the month of June. […] Of that $730 million, $685 million reduced our cost of goods sold as they applied to products that have already been sold. The remaining $45 million remains in inventory, and will hit the P&L as we turn inventory through the remainder of the year.

So, net benefit of tariff of 85 basis points, mix impact of 60 basis points. So, that gives you the year-over-year increase of about 25 basis points.

what we would expect to see is that our gross margin rate in the fourth quarter will likely be right around flat compared to last year.

housing turnover, just as kind of one point in the economy that we watch, has been at historical lows. It has never been lower as a percentage of the housing stock. […] We've seen housing turnover at these low levels for four years now.

We have had a start to Q3 that's really consistent with the demand we saw in the second quarter. But we know what the environment is out there. We have a lot of volatility.

on Magic Apron, we're getting millions of questions per month now on Magic Apron. It's continued to grow. It's been a great tool for our customers.

I'm confident and Billy is confident, had we not had tariff refunds, we would have exceeded our expectations for the quarter regardless. It just came in a different form.

There was some same SKU AUR as we've talked about previously on calls based on some of the cost inputs and so forth. […] But really, think of single purchases being the outsized impact, as I mentioned, our comps of over $2,500.

within the last 12 months, 90% of our stores have closed a sale through SRS.

A customer can pay a small flat fee and get delivery within three hours. Now, the majority of those deliveries are actually happening in less than one hour.