General view of a Home Depot store in Midtown Manhattan on February 26, 2025 in New York City.
Eduardo Munoz Alvarez | Corbis News | Getty Images
Home Depot will report quarterly earnings before the bell on Tuesday, as the retailer leans on roofers, landscapers and other home professionals to help drive sales growth and weather tariff-related uncertainty.
Here’s what Wall Street expects for Home Depot’s fiscal second quarter, according to a survey of analysts by LSEG:
- Earnings per share: $4.71 expected
- Revenue: $45.36 billion expected
For about two years, Home Depot leaders have pointed to challenging dynamics that have slowed homeowners’ appetites for big projects. Higher interest rates have kept many consumers from buying a new home or discouraged them from springing for a kitchen renovation, addition or similar large project that requires a loan, CEO Ted Decker said on a May earnings call.
“People are painting again and working in their yards and doing smaller projects, but just have not engaged in the larger projects,” he told investors at the time.
As the real estate market remains sluggish and borrowing costs remain high, Home Depot has looked beyond the homeowners who come to its stores to buy kitchen appliances, cans of paint or other supplies for do-it-yourself projects. Home Depot acquired SRS Distribution, a company that sells supplies to roofing, landscaping and pool professional, for $18.25 billion last year. It announced in June that it was buying GMS, a specialty building products distributor, for about $4.3 billion.
Along with slower housing turnover, tariffs have added uncertainty to the outlook for retailers. Home Depot said in May that it did not plan to hike prices across its store. It plans to “generally maintain our current pricing levels across our portfolio,” Chief Financial Officer Richard McPhail told CNBC in an interview at the time.
That bucked the trend of other retailers, including Walmart, whiched warned that tariff-related costs would be too much to absorb and would lead to higher prices for customers.
For the full year, Home Depot said it expects total sales to grow by 2.8% and comparable sales, which take out the impact of one-time factors like store openings and calendar differences, to rise about 1%. Its forecast in May was based on the continuation of a U.S. agreement to temporarily lower tariff rates to 30% for imports from China and to 10% for many other countries.
Since then, some of the U.S.’s tariff policies have changed. Higher tariffs began in early August on dozens of U.S. trading partners. Other major agreements remain in flux. President Donald Trump delayed higher U.S. tariffs on Chinese goods for another 90 days as negotiations continue.
McPhail told CNBC in May that Home Depot and its suppliers have worked to diversify their imports, so they draw from a wider variety of countries and decrease the share coming from China. By May 2026, he said, no country outside of the U.S. would represent more than 10% of Home Depot’s purchases.
This story is developing. Please check back for updates.
