Home Depot’s stock surges as surprise sales growth provides signs of a turnaround

MarketWatch

by Tomi Kilgore

February 24, 2026

AI-Generated Deep Dive Summary

Home Depot’s stock experienced a significant surge in early trading on Tuesday, driven by better-than-expected quarterly comparable sales and strong profit margins. The company reported a break in its streak of underperformance, with profits exceeding expectations by the largest margin in years. This positive news came despite ongoing challenges in the housing market, which typically impacts home improvement retailers like Home Depot. The retailer’s resilience was notable as it maintained steady demand throughout the quarter. While the housing market has faced headwinds, Home Depot managed to capitalize on opportunities in repair and remodel segments, indicating a strategic focus that resonated with both consumers and investors. This performance not only boosted investor confidence but also highlighted the company's ability to adapt to economic uncertainties. The stock’s upward movement was further fueled by Home Depot’s announcement of a 1.3% increase in its quarterly dividend. Additionally, the company provided a full-year outlook that aligns closely with Wall Street forecasts, signaling optimism about future growth and stability. This combination of financial strength and strategic planning has positioned Home Depot as a standout performer in a challenging retail environment. For readers interested in finance, this development underscores the importance of adaptability and resilience in a volatile market. Home Depot’s ability to deliver against expectations despite external pressures highlights the company's potential for long-term success. Investors will likely view this as a positive indicator of not only Home Depot's health but also broader economic trends, particularly in the housing sector. Overall, Home Depot’s stock surge reflects its strategic execution and operational efficiency, offering hope for both shareholders and stakeholders looking for signs of stability and growth in uncertain times.

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Originally published on MarketWatch on 2/24/2026