Why This Matters to Distributors: Home Depot is expanding its reach into professional contractor markets while making its U.S. store network a bigger part of its fulfillment strategy. The company is combining more than 2,000 U.S. stores, more than 1,340 SRS locations and faster job-site delivery as it competes for more Pro business.
Home Depot reported higher second-quarter sales and net income Aug. 18 as the company continued to expand its professional contractor business and invest in faster fulfillment.
Second-quarter sales increased 5.7% to $47.86 billion from $45.28 billion a year earlier. Net income increased 4.7% to $4.77 billion from $4.55 billion. Comparable sales increased 1.7%, including a 1.3% increase in the U.S.
For the first six months of fiscal 2026, sales increased 5.3% to $89.63 billion from $85.13 billion a year earlier. Net income increased 0.9% to $8.06 billion from $7.98 billion.
The results come as Home Depot continues to build a larger business serving professional contractors alongside its traditional home improvement retail operation. At the end of the second quarter, the company operated 2,364 retail stores and more than 1,340 SRS locations.
Home Depot acquired SRS Distribution in 2024 as part of its strategy to increase its business with professional contractors. SRS added a specialized distribution network and expanded Home Depot’s ability to serve customers at job sites.
Home Depot is now pairing that specialized distribution network with faster fulfillment from its retail stores.
The company said Aug. 18 that it has rolled out Express Delivery across U.S. markets, using more than 2,000 stores as local fulfillment hubs. Customers can receive eligible products in three hours or less for a flat fee without a subscription or membership.
The service covers thousands of products across plumbing, electrical, hardware, paint, tools, and other project supplies, with orders delivered to homes or job sites.
“Customers expect products to be available when and where they need them, and Express Delivery helps us meet that expectation with a fast, reliable solution,” Jordan Broggi, executive vice president of interconnected retail, said.
Broggi said the service could be used by a professional contractor who runs short of adhesives or caulk during a time-sensitive job.
The rollout puts Home Depot more directly into a service area that has long been important to local and regional distributors: getting products to contractors quickly when a job cannot wait.
Home Depot also offers free same-day delivery on orders of $25 or more placed by 4 p.m. The company said its delivery center network, working with its stores, delivers more than 65% of in-stock parcel products the same or next day and about 55% of in-stock big and bulky orders within two days. Home Depot said it plans to offer faster delivery speeds in the coming months.
Customer activity during the quarter showed that sales growth was not coming from more transactions.
Customer transactions declined 0.8% to 443.2 million from 446.8 million a year earlier, while the average transaction increased 2.8% to $92.50 from $90.01. For the first six months, transactions declined 0.9%, while the average transaction increased 2.5% to $92.62 from $90.34. Home Depot’s transaction and average-ticket figures exclude HD Supply and SRS.
“Our second quarter results exceeded our expectations. We saw broad based demand across the business as customers continued to engage in smaller projects,” Chief Financial Officer Richard McPhail said.
Home Depot maintained its fiscal 2026 outlook. The company expects total sales to increase about 2.5% to 4.5%, with comparable sales ranging from flat to 2% growth. It also expects to open about 15 stores.
For distributors, the broader competitive issue is Home Depot’s continuing expansion beyond the traditional big-box retail model. SRS gives the company a specialized distribution network focused on professional customers, while its stores provide more than 2,000 additional local fulfillment points for rapid delivery.
That combination gives Home Depot more ways to compete for professional customers based on product availability, delivery speed, and job-site service — capabilities that have traditionally differentiated local and regional distributors.
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