HD beat Q2 expectations with $47.9B in revenue, positive comparable sales, and a reaffirmed full-year outlook supporting a $386 price target. HD's forward P/E of 23 sits between Lowe's 17 and Floor & Decor's 26, with its SRS-powered Pro moat justifying the premium multiple. SRS Distribution anchors a $400M cross-sell opportunity, with online comps up 11% for five straight quarters, powering the bull case to $429.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Home Depot didn't make the cut. Grab the names FREE today. Home Depot (NYSE:HD) delivered a quarter that changes the conversation.
After a soft Q1, management reaffirmed full-year guidance, comparable sales turned positive, and the Pro business gained share. My 24/7 Wall St. price target for Home Depot is $386.28, implying 14.46% upside from the $337.49 close on August 18, 2026. My rating is buy, with high confidence at 90%.
HD is down 4.79% over the past week and 12.2% over the past year, sitting 11% below its 52-week high of $418.06. The Q2 FY26 earnings report told a better story: revenue of $47.9 billion grew 5.7% year over year, adjusted EPS came in at $4.92, and comparable sales rose 1.7%. CFO Richard McPhail said "our second quarter results exceeded our expectations" and reaffirmed the full-year outlook.
Management raised the dividend to $2.33 per quarter, its 156th consecutive cash dividend. The bull case rests on the Pro customer. SRS Distribution anchors a professional ecosystem where 90% of stores close sales through SRS, with $400 million in expected cross-sell this year.
Online comps grew 11%, marking the fifth straight double-digit quarter, and big-ticket comps over $1,000 rose 2.4%. If housing turnover thaws and comps accelerate toward guidance's high end, the 247Factor bull scenario points to $429.21, a 27.18% return. Analyst consensus of $374.06 leans bullish with 21 buy ratings versus 15 holds.
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