Home Depot Q2 Preview: Housing, Tariffs, and Rates in Focus

Home Depot (NYSE:HD) will report second-quarter results before the market opens on Tuesday, August 19, 2025. Wall Street expects EPS of $4.72 on revenue of $45.4 billion, both up modestly YoY. Shares are flat year to date but have gained more than 10% in the past month as investors bet that lower interest rates could spark renewed DIY demand.

Investors often look to Home Depot as a proxy for the health of U.S. housing and remodeling activity, so management's tone on consumer behavior will be watched closely. After an on-and-off period of tariffs, they appear to be here to stay (at least for now), making commentary on whether shoppers pulled forward their purchases ahead of higher costs important. Investors will also want to hear management's view on how this demand could evolve through the rest of the year

In Q1 FY25, company comps fell 0.3% while U.S. comps rose 0.2%, underscoring weakness in DIY against steadier Pro demand. Any stabilization in big-ticket categories could be viewed positively, especially if expected Fed rate cuts later this year provide support.

However, after hitting record highs, home price appreciation has slowed, with some regions now seeing declines. According to Realtor.com, more sellers are cutting asking prices in an attempt to attract buyers, whichcould weigh on homeowners' willingness to invest in upgrades.

Margins will also be watched closely as wage inflation, shrink, and product mix offset gradual inventory normalization.

This article first appeared on GuruFocus.

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