Home Depot posts $41.8B Q1 sales, reaffirms fiscal 2026 guidance

Home Depot reported fiscal first-quarter sales of $41.8 billion on Tuesday and kept its full-year forecast unchanged, saying demand in its business remained broadly consistent with what it saw through fiscal 2025. The Atlanta-based retailer said sales rose 4.8% from a year earlier, while comparable sales increased 0.6% and U.S. comparable sales rose 0.4%. Net earnings fell to $3.3 billion, or $3.30 per diluted share, from $3.4 billion, or $3.45 per share, a year earlier. Adjusted diluted earnings per share were $3.43. ### How did Home Depot’s quarter compare with Wall Street expectations? CNBC reported that Home Depot beat analyst estimates on both revenue and profit, citing LSEG data that showed expectations for adjusted earnings per share of $3.41 and revenue of $41.52 billion. Home Depot reported adjusted earnings per share of $3.43 and revenue of $41.77 billion, according to CNBC and the company’s release. (corporate.homedepot.com) ### What did management say about customer demand? Ted Decker, Home Depot’s chair, president and chief executive, said the company’s first-quarter results were “in line with our expectations.” Decker said “the underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure.” (cnbc.com) Richard McPhail, Home Depot’s finance chief, told CNBC that “the homeowner in a relevant sense is perhaps more protected financially than other customer cohorts and so we continue to see engagement.” McPhail added that customers were still holding back on larger projects and “are going to defer their spend on larger projects,” a pattern he said was consistent with recent years. (corporate.homedepot.com) ### Which parts of the business remain under pressure? CNBC said Home Depot and the broader home-improvement sector have been dealing with lower housing turnover, economic uncertainty and delays in bigger-ticket projects. The network also reported that mortgage-rate relief expected earlier in the year faded after conflict in the Middle East pushed rates higher again. (cnbc.com) Home Depot said foreign exchange added about 55 basis points to total company comparable sales in the quarter. The company also said it ended the quarter with 2,361 retail stores and more than 1,280 SRS locations across the United States, Canada and Mexico. ### What exactly did Home Depot reaffirm for fiscal 2026? (cnbc.com) Home Depot said it still expects total sales growth of about 2.5% to 4.5% in fiscal 2026 and comparable sales growth ranging from flat to up 2.0%. The company also maintained its forecast for about 15 new stores, a gross margin of about 33.1%, and diluted earnings per share growth of approximately flat to 4.0% from fiscal 2025. (corporate.homedepot.com) CNBC reported that the company’s reaffirmed guidance compares with LSEG expectations for roughly 4% sales growth and 2.4% adjusted earnings-per-share growth. The network also said professional customers such as contractors and roofers account for about half of Home Depot’s revenue. ### When are the next dates investors will watch? (corporate.homedepot.com) Home Depot said it held its first-quarter earnings release on May 19 at 9 a.m. ET, with a webcast available through its investor relations site. The company’s events calendar lists its annual meeting of shareholders for May 21 at 9 a.m. ET and its second-quarter fiscal 2026 earnings release for August 18 at 9 a.m. ET. (ir.homedepot.com) (cnbc.com)