Home Depot earnings show consumer resilience

Home Depot reported first-quarter fiscal 2026 results on May 19 that retailers and analysts have cited as evidence that home-improvement demand has not broken under higher fuel costs and weaker consumer sentiment. The company said sales rose 4.8% to $41.8 billion in the quarter, while comparable sales increased 0.6% and U.S. comparable sales rose 0.4%. Ted Decker, Home Depot’s chair, president and chief executive, said the quarter was in line with the company’s expectations and that demand looked much like it did through fiscal 2025. The company also reaffirmed its fiscal 2026 guidance. ### What did Home Depot actually report? Home Depot said adjusted diluted earnings per share were $3.43 for the quarter ended in April, compared with $3.56 a year earlier, while net earnings were $3.3 billion versus $3.4 billion in the same period of fiscal 2025. Revenue of $41.8 billion topped the year-earlier period by $1.9 billion, according to the company’s earnings release. (corporate.homedepot.com) The company said its first-quarter results were “in line” with internal expectations and kept its full-year outlook unchanged. Home Depot’s guidance calls for total sales growth of about 2.5% to 4.5%, comparable sales from flat to up 2.0%, and adjusted diluted earnings per share growth from flat to 4.0% off fiscal 2025 adjusted EPS of $14.69. (corporate.homedepot.com) ### Where does the “consumer resilience” argument come from? Ted Decker told investors on the May 19 earnings call that “the underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure.” That comment has been picked up by retail trade coverage as a sign that shoppers are still spending on home projects even as broader confidence measures remain under pressure. (corporate.homedepot.com) Richard McPhail, Home Depot’s chief financial officer, separately said consumers were feeling pressure from fuel costs. In an interview published May 19, McPhail said there was “no question” the average consumer was feeling the effects of rising fuel costs, even as the company maintained its annual outlook and described continued spending on smaller do-it-yourself projects. (corporate.homedepot.com) ### What kind of spending held up? Home Depot executives said regional and project-level details pointed to selective demand rather than a broad surge. On the earnings call, Decker said the company’s Northern and Western divisions posted positive comparable sales in the United States as customers took on outdoor projects when weather was favorable. Mexico posted positive comparable sales in local currency, while Canada was negative. (finance.yahoo.com) Retail trade coverage has described that pattern as a consumer who is still active but more selective about project size and timing. Retail TouchPoints, citing Home Depot executives, said shoppers remained resilient while shifting priorities in response to tariffs, gas prices and interest rates. (ir.homedepot.com) ### What did analysts do after the report? Zacks Research cut its estimate for Home Depot’s second-quarter fiscal 2027 earnings per share to $4.70 from $4.73 in a note dated May 29, according to MarketBeat. Zacks kept a “Hold” rating on the stock, MarketBeat reported. MarketBeat also said Home Depot’s latest quarter beat consensus expectations, with EPS of $3.43 versus $3.41 expected and revenue of $41.77 billion against a $41.59 billion estimate. (retailtouchpoints.com) Analyst ratings compiled by the outlet remained mixed, with 20 Buy ratings, 12 Holds and 1 Sell. ### How did the stock trade, and what comes next? (marketbeat.com) Home Depot shares closed at $317.41 on May 29, up 0.08% on the day, according to MarketBeat’s earnings page, indicating little change after the recent results and follow-on estimate revisions. The company said on May 21 that its board declared a quarterly cash dividend of $2.33 per share. (marketbeat.com) Home Depot said the dividend will be paid on June 18, 2026, to shareholders of record at the close of business on June 4, 2026. MarketBeat lists Home Depot’s next earnings report as estimated for Aug. 18, 2026. (ir.homedepot.com) (marketbeat.com)