Home Depot Pro Push Offsets Frozen Housing Market

Zacks Investment Research·24 Sep 2026·

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Earnings Industry Specialty Retail

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Summary · why it matters

Home Depot is leaning harder on professional customers as housing affordability and low turnover continue to suppress larger remodeling projects, with second-quarter fiscal 2026 results showing meaningful support from SRS, specialty distribution and cross-selling. The Pro business posted positive comparable sales in the second quarter and outperformed DIY, with gains across all Pro cohorts, while big-ticket transactions above $1,000 increased 2.4% year over year, improving from 0.8% growth in the first quarter. SRS posted comparable sales above the company average and positive comps across all verticals, and management expects mid-single-digit organic sales growth in fiscal 2026; the Mingledorff's acquisition added HVAC as a fifth SRS operating line, and the GMS platform broadened the product catalog available to professional customers. Over the 12 months through the second quarter, 90% of stores closed at least one SRS sale through QuoteCenter, and Home Depot plans to add 40-50 SRS branches in fiscal 2026 alongside about 15 new retail stores, while online sales rose 11% in the second quarter, a fifth consecutive quarter of double-digit growth. Housing remains the central constraint: comparable customer transactions declined 1% year over year in the second quarter while comparable average ticket increased 2.8%, and management said housing turnover has remained at historically low levels for four years with no sign of an inflection point. Home Depot still delivered 5.7% sales growth and a 1.7% comparable-sales increase in the second quarter, then reaffirmed fiscal 2026 guidance for total sales growth of 2.5-4.5% and comparable sales ranging from flat to 2%.

The Home Depot Inc ▲