Home Depot reported fiscal second-quarter 2026 revenue and adjusted earnings above analyst estimates, with steady spending on repair and maintenance projects helping offset weaker demand for larger, borrowing-sensitive renovations. Sales rose 5.7% year over year to $47.86 billion, ahead of the $47.27 billion estimate, while adjusted diluted earnings increased to $4.92 per share from $4.68, beating the $4.73 consensus. Comparable sales rose 1.7%, the strongest performance since the third quarter of 2022, with U.S. comparable sales up 1.3%. Online comparable sales increased 11%, marking a fifth straight quarter of double-digit growth. Executives said 13 of 16 merchandising departments posted positive comparable sales, led by categories tied to electrical, plumbing, hardware and tools, underscoring demand for smaller home projects even as large remodels remain subdued amid high mortgage rates and elevated home prices. A $730 million refund tied to tariffs imposed under the International Emergency Economic Powers Act reduced cost pressures in the quarter. Home Depot said $685 million of that amount lowered cost of goods sold on products already delivered, helping lift gross margin to 33.7%, while operating margin slipped to 14.3% from 14.5% as selling and administrative expenses rose. The company said the refund would be fully offset by higher costs over the full fiscal year. Home Depot also said its professional contractor business, now roughly half of annual revenue following the acquisitions of SRS Distribution and GMS, outperformed the do-it-yourself segment and posted positive comparable sales. The retailer reaffirmed its full-year outlook for comparable sales, revenue and adjusted earnings growth, while continuing to invest in delivery and distribution expansion.