HD · Q2 FY2027
HOME DEPOT, INC. Q2 FY2027 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $47.86B | $43.17B (yr ago) | Beat |
| EPS | $4.79 | $4.60 (yr ago) | Beat |
| Free Cash Flow | $5.39B | $5.41B (yr ago) | Miss |
| Gross Margin | 33.7% | 33.4% (yr ago) | Beat |
| Operating Margin | 14.3% | 15.1% (yr ago) | Miss |
What changed
Revenue increased 10.9% year over year to $47.86 billion, while EPS rose 4.1% to $4.79. Gross margin improved 30 basis points, but operating margin contracted 80 basis points and free cash flow was essentially flat, leaving the quarter stronger on demand than on operating leverage.
Impact on the investment thesis
There is no prior SageNoodle fair value to revise. We establish fair value at $314.38 per share; the quarter supports demand resilience but not a higher valuation because operating-margin compression offset much of the sales growth.