RH stock falls 2.69 percent as Q2 growth meets expansion costs

Published on 10/05/2026 at 17:27 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

RH stock carries a USD 2.2 billion market capitalization on October 5, 2026. Q2 revenue reached USD 922.2 million, while fiscal 2026 growth guidance is 5.5 to 7.0 percent.

RH, US74967X1037, Illustration mit AI erstellt.

RH stock (ISIN US74967X1037) was trading at USD 117.22 on the NYSE on October 5, 2026, down 2.69 percent at 11:26 a.m. ET. The latest reported quarter delivered USD 922.2 million in revenue, while management pointed to a broader RH Estates rollout and international expansion as key growth drivers.

Q2 revenue rose 2.6 percent

For the second quarter ended August 1, 2026, RH reported GAAP net revenue of USD 922.2 million, up 2.6 percent from USD 899.2 million a year earlier, according to RH in its September 10, 2026 shareholder letter.

GAAP net income increased to USD 60.2 million from USD 51.7 million in the comparable quarter, while diluted GAAP earnings per share reached USD 3.06 versus USD 2.62. Normalized adjusted EBITDA margin was 13.4 percent, and the quarter included USD 55.1 million of tariff benefits, a factor that makes the margin comparison less representative of underlying operations.

Guidance points to a stronger fourth quarter

RH's updated fiscal 2026 outlook calls for revenue growth of 5.5 to 7.0 percent and an adjusted EBITDA margin of 15.0 to 16.2 percent. The company also projects USD 300 million to USD 400 million from free cash flow, asset sales and distributions from equity method investments, according to RH.

The quarterly path is uneven. RH expects third-quarter revenue growth of 5.0 to 6.0 percent, followed by fourth-quarter growth of 16.1 to 21.2 percent, while international expansion costs are expected to reduce the adjusted EBITDA margin by 310 basis points in the third quarter.

Consensus target stays above the stock

Analyst consensus is Buy, with 14 analysts covering RH and an average price target of USD 166.50, according to Rallies as of October 5, 2026. The average target lies 42.0 percent above the USD 117.22 trading price, leaving the expansion plan and margin normalization as the central tests for that view.

RH also opened its first freestanding RH Estates gallery in Greenwich on September 18, 2026, with a second freestanding gallery in Los Angeles planned for 2027, according to RH. Management said the Estates assortment would expand more aggressively in November, adding a concrete near-term execution checkpoint.

RH stock trades near its yearly low

RH stock was trading at USD 117.22 on the NYSE on October 5, 2026, with a session low of USD 115.66 and a session high of USD 120.67. Its 52-week range was USD 106.30 to USD 239.40, and market capitalization stood at USD 2.2 billion.