The Home Depot’s second quarter results, published on Aug. 18, exceeded its expectations, with comparable sales among its Pro segment (made up of contractors typically served by distributors) outperforming DIY.

The home improvement retailer recorded 2Q26 sales of $47.9 billion, an increase of $2.6 billion, or 5.7%, from the same quarter in 2025. Comparable sales increased 1.7% in the quarter. Net earnings for the quarter were $4.8 billion compared to $4.6 billion year-over-year.

During the second quarter, Home Depot reported strength across several Pro-heavy categories, including portable power, decking, dimensional lumber, pipe and fittings, fasteners, hand tools and concrete. Pro posted positive comps and outperformed DIY, according to the company.

Senior Executive Vice President Ann-Marie Campbell attributed the Pro performance to investments across the company’s systems, product assortment, job-lot quantities, delivery capabilities, sales teams and specialized services. She said Home Depot saw strong performance across all of its Pro cohorts.

Tariff Refund Reduces COGS

The company received IEEPA tariff refunds of $730 million in June, which reduced its cost of goods sold by $685 million as they applied to products that have already been sold. The remaining $45 million remains in inventory.

“While these refunds were received in the second quarter, they are being used to offset unplanned and rising cost pressures throughout the year,” said Richard McPhail, Home Depot’s EVP and Chief Financial Officer.

Gross margin was 33.7%, an increase of approximately 25 basis points year-over-year, which was primarily driven by the benefit from the IEEPA tariff refund, largely offset by incremental cost pressures related to fuel, energy and other product input costs as well as a change in mix as a result of the GMS acquisition.

SRS Acquisition Comps Above Average

SRS comped above the company average in the quarter, and all its verticals posting positive comps.

“It looks like they’re taking significant shares,” CFO McPhail said. “We couldn’t be more pleased with that acquisition, and how we’re all working together.”

For the year, the company expects SRS to deliver mid-single digit percent organic sales growth, and plans to open approximately 40 to 50 new SRS branches.

“At SRS … we’re capturing significant incremental sales to homebuilders, commercial customers and remodelers across the verticals, because you think about the combination of product catalog across Home Depot and SRS. And now, GMS and HVAC, this expanded catalog is resonating. Our Pro customers tell us that what we’re building is unique and it’s truly compelling for them,” McPhail said.

Home Depot’s Ann-Marie Campbell added: “Within the last 12 months, 90% of our stores have closed a sale through SRS.”

Home Depot Expands Express Delivery for Pro Segment

Alongside the 2Q earnings, The Home Depot announced a nationwide rollout of Express Delivery to bring “rapid fulfillment” to Pro and DIY customers for a flat fee in U.S. markets.

“Now, customers can get need-it-now items in three hours or less, including materials and supplies for Pro construction projects,” company officials said in a press release.

Its network of 2,364 stores leveraged as fulfillment hubs will deliver:

• more than 65% of in-stock parcel products same day or next day
• approximately 55% of in-stock big and bulky orders within two days
• Next day major appliance delivery reaching 60% of the U.S. population on key SKUs, enabling Pros to source appliances for time-sensitive repairs faster

The Home Depot Chairman, President and CEO Ted Decker continues to be on a temporary medical leave of absence.