Home Depot (HD) Stock Rises After Earnings—Is a Breakout Next?

TLDR

• Home Depot reported adjusted Q2 earnings of $4.92 per share, beating the $4.71 consensus estimate.
• Quarterly revenue reached $47.86 billion, topping expectations and rising from $45.28 billion a year earlier.
• Home Depot stock reclaimed its 50-day moving average at $338.24 after the earnings release.
• Shares are testing key Ichimoku Kijun resistance near $340.71, which remains the main level to watch.
• The projected weekly trading range stands between $331.37 and $347.88, with downside risk still higher than upside probability.
• Analysts currently expect $3.95 EPS on $42.92 billion in revenue for the coming quarter.

Home Depot (HD) stock moved higher after the retailer reported second-quarter results on Tuesday, August 18. The company beat Wall Street estimates for earnings and revenue, while traders focused on whether shares could break above resistance.

The Home Depot, Inc., HD

Management credited associates, merchants and supplier partners for the quarter’s performance. The report also extended earnings resilience, although the stock continues to trail the broader U.S. market on a year-to-date basis in 2026.

Home Depot Stock Beats Earnings Forecast

Home Depot reported adjusted earnings of $4.92 per share for the quarter ended July 2026. That result topped the Zacks Consensus Estimate of $4.71 and rose from $4.68 per share a year earlier.

We shared our Q2 earnings this morning. The strong results exceeded our expectations and reflect the hard work of our associates, merchants and supplier partners. Thank you for everything you do to take care of our customers.

See the highlights: https://t.co/mP6Xsqw7o3pic.twitter.com/mYp9JRogue

— The Home Depot (@HomeDepot) August 18, 2026

Quarterly revenue reached $47.86 billion, beating the consensus forecast by 1.33%. Revenue also increased from $45.28 billion in the same period last year. Home Depot has now exceeded revenue estimates in four straight quarters.

Home Depot stock traded near the Ichimoku Kijun resistance at $340.71 after the earnings release. The shares also reclaimed the 50-day moving average at $338.24 during the session after closing below that level previously.

The daily chart remains mixed. Price stands below the 20-day and 200-day moving averages but above the 50-day average. Stoch RSI remains in oversold territory, while the weekly chart continues to show a negative longer-term structure.

Traders Watch $340.71 Level

A daily close above $340.71 would show stronger buying interest and could open the way toward the upper end of the expected weekly range. Current projections place that range between $331.37 and $347.88.

The outlook assigns a 67% probability to downside movement and 33% to upside movement over the coming trading week. A move back below the 50-day average could signal that buyers failed to hold the post-earnings recovery. Home Depot has beaten consensus earnings estimates in three of the past four quarters.

Current estimates call for earnings of $3.95 per share on revenue of $42.92 billion next quarter. For the full fiscal year, analysts expect earnings of $14.99 per share and revenue of $171.56 billion. Home Depot stock remains down about 1.8% this year, compared with a 13.1% gain for the S&P 500.

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