Home Depot Inc (HD) FY2026Q2 Earning Prediction
Home Depot Inc (HD) is set to release its FY2026Q2 earnings performance on 08/19 04:00:00 in Pre-Market trading. Consensus forecasts predict a revenue of 45.00B and an earnings per share (EPS) of 4.71 for the FY2026Q2. With Intellectia's exclusive AI algorithms, users can predict whether the earnings will beat or miss expectations before the report drops. Leverage this powerful tool to strategize and position your trades ahead of the earnings release!
AI Earnings Prediction
The earnings forecast anticipates a neutral outcome due to balanced growth and margin pressures.
Scenario Analysis
Key Indicators Forecast
No data
Prediction Logic & Rational
Logic & Justification
Key Fact Data Analysis:
- Strategic Acquisition Activity: Home Depot’s subsidiary, SRS Distribution, agreed to acquire GMS Inc. for $110/share ($ 5.5B enterprise value). Analysts (e.g., Wells Fargo) view this as a logical expansion into the Pro distribution channel, which could bolster long-term revenue growth via expanded market share. However, the deal’s short-term financial burden (debt-funded) and timing (HSR refiling delays closing to late August) mean Q2 earnings will not reflect synergies, and interest expenses may pressure margins.
- Margin Pressures: RBC Capital flagged concerns about the deal’s timing, noting it could delay share buybacks and temporarily suppress gross margins due to integration costs. Additionally, GMS’s inventory challenges (residential/commercial demand headwinds) risk spillover into Home Depot’s margins if not managed post-acquisition.
- Pro Segment Momentum: Truist’s card data indicates "solid" Q2 performance for Pro-focused retailers, aligning with Home Depot’s push to capture Pro customers. However, analyst commentary (e.g., DA Davidson) notes “modestly improving” industry trends, suggesting growth is in line with expectations rather than exceeding them.
- Lack of Inventory Management Updates: Merchandise inventories increased by $ 3.3B last quarter, but no recent updates suggest material improvements. Elevated inventories could lead to markdowns or higher carrying costs, weighing on margins.
Tactical Strategy Recommendations
Trading Strategy
- Options Play:
- Sell short-dated (1-week post-earnings) straddles around $407 to capitalize on low implied volatility (neutral base case).
- Stock Pair Trade:
- Long HD / Short LOW (Lowe’s), as HD’s Pro focus provides relative insulation from tariff risks noted in DA Davidson’s Lowe’s downgrade.
Rationale: Neutral outcomes are most likely given mixed Fact Data signals, but asymmetric upside exists if Pro sales outperform. Margin risks remain a headwind.
Earnings Surprise Analysis
HD Transcript
The earnings call reflects a negative sentiment due to several factors: softer-than-expected results, increased capital expenditures, and challenges in demand recovery without housing activity or interest rate reductions. The Q&A session highlighted concerns about EBIT shortfall, lack of storm activity impacting sales, and unclear management responses on margin improvement. Despite some positive initiatives, the overall outlook appears cautious with pressures from consumer uncertainty and supply chain issues, leading to a negative prediction for the stock price movement.
The earnings call summary presents mixed signals. Financial performance shows modest growth, but operating margins declined due to increased expenses and market pressures. The GMS acquisition is promising, yet its immediate impact is negative on margins. The Q&A reveals concerns about consumer uncertainty and lack of storm activity affecting sales. However, there are positive aspects like dividend payments and potential long-term benefits from GMS synergies. The overall sentiment is neutral as positive and negative factors balance out, indicating limited stock price movement in the short term.
The earnings call summary presents a mixed outlook. While there are positive signs such as a slight sales growth and strategic acquisitions, the flat gross margin and decline in EPS are concerning. The Q&A reveals optimism about tax reforms and rate cuts but also highlights economic uncertainties. The lack of clear guidance on large projects and the impact of reduced promotions adds ambiguity. The overall sentiment is neutral, as positive developments are balanced by financial constraints and uncertain economic conditions.
HD Report
Frequently Asked Questions
What is the Home Depot Inc FY2026Q2 Earnings Release Date and Time?
Home Depot Inc (HD) is scheduled to release its FY2026Q2 earnings report onAug 19, 2025, Pre-Market(approximately 4:00 PM ET). This timing allows investors to react during after-hours trading, with a conference call typically following shortly after.
What Are the Consensus Forecasts for Home Depot Inc FY2026Q2 Revenue and EPS?
Analysts' consensus predicts 45.00B in revenue and an EPS of 5.00 for Home Depot Inc's FY2026Q2.
What Does Intellectia's AI Predict for Home Depot Inc FY2026Q2 Earnings?
Intellectia's exclusive AI algorithms forecast a Neutral forHome Depot Inc's FY2026Q2 earnings, with a prediction date of Aug 19, 2025. Home Depot Inc The earnings forecast anticipates a neutral outcome due to balanced growth and margin pressures.
How Can I Use This Earnings Prediction to Trade HD Stock?
Leverage Intellectia's AI forecast to position trades ahead of theAug 19, 2025 release—consider calls for a beat scenario or protective puts for misses. Focus on pre-market volatility, and use the scenario probabilities to build strategies around revenue and guidance updates.
How Accurate Is Intellectia's AI for Earnings Predictions Like Home Depot Inc FY2026Q2?
Intellectia's predictions are backed by rigorous backtesting, showing a high hit rate for Beat and Miss calls compared to traditional analysis. While no forecast is 100% certain, we provide probability-based scenarios (e.g., 50% chance of a *Beat*) and detailed rationales to help you make informed decisions. Combine our insights with your strategy for the best results—it's like having a co-pilot for earnings season! Empowering users to strategize trades before reports drop.
How does AI Earnings Prediction generate its forecasts?
AI Earnings Prediction uses advanced Large Language Models (LLMs) to analyze a wealth of data, including past earnings transcripts, real-time market sentiment, analyst insights, and company news from the last three months. It focuses on key indicators like revenue, EPS, and margins to predict whether a company will *Beat*, *Miss*, or remain Neutral relative to market expectations. Think of it as a super-smart analyst crunching numbers and news 24/7 to give you a trading edge!
When are the predictions available, and how often are they updated?
Predictions are generated two days before a company’s earnings release (e.g., 5:00 PM ET on Feb 13 for a Feb 15 report) to capture the latest market and company data. They’re updated in real-time if significant news breaks, ensuring you get fresh insights.
Can I use AI Earnings Prediction for all types of stocks?
Currently, AI Earnings Prediction focuses on companies with market caps above $40 billion, covering major players like SPG, AAPL, MSFT, and NVDA for the 2025-2026 earnings seasons. We prioritize high-impact stocks with robust data to ensure reliable forecasts. Stay tuned as we expand coverage to more companies based on user demand!
