Home Depot reports $3.43 adjusted EPS and $41.77B revenue

Home Depot reported first-quarter fiscal 2026 adjusted earnings of $3.43 a share on May 19 and revenue of $41.77 billion, topping Wall Street expectations and extending a run of steady demand from professional contractors. 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 were $3.3 billion, or $3.30 per diluted share, down from $3.4 billion, or $3.45 per diluted share, a year earlier. The company reaffirmed its fiscal 2026 guidance. ### Why did the quarter beat expectations if demand is still uneven? Wall Street estimates compiled by market data providers had pointed to revenue of about $41.5 billion to $41.6 billion and adjusted earnings of roughly $3.41 to $3.42 a share. Home Depot exceeded those figures with $41.77 billion in sales and adjusted EPS of $3.43. CNBC reported the company excluded one-time items, including costs tied to certain intangible assets, from the adjusted figure. (corporate.homedepot.com) Ted Decker, Home Depot’s chief executive, said in the company’s earnings release 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. The company said spring buying by homeowners and continued spending by professional customers helped support the quarter. (cnbc.com) ### What is Home Depot saying about big-ticket remodeling jobs? Reuters reported on May 19 that Home Depot flagged choppy demand for large remodels as elevated mortgage rates and high home prices continued to weigh on housing affordability. That comment lines up with broader caution from the company on discretionary, project-driven spending tied to bigger home upgrades. (corporate.homedepot.com) Investopedia reported that do-it-yourself sales were negative in the quarter while sales to professional customers were positive. That split matters because larger remodeling work tends to be more closely tied to housing turnover, financing conditions and homeowner confidence. ### Which parts of the business were stronger? Comparable average ticket rose 2.2% in the quarter while comparable transactions fell 1.3%, according to the company’s earnings materials. (corporate.homedepot.com) Gross margin was 33%, down 75 basis points, and adjusted operating margin was 12.3%, down from 13.2% a year earlier, reflecting pressure that the company said was tied in part to the GMS acquisition. Home Depot ended the quarter with 2,361 stores after opening two new locations. (finance.yahoo.com) AP reported that professional customers were a key source of strength, while homeowners also spent on seasonal spring items. That mix helped offset softer demand in larger discretionary projects. ### What guidance did Home Depot keep in place? Home Depot said it still expects fiscal 2026 sales growth of 2.5% to 4.5%. CNBC reported the company also continues to project adjusted earnings-per-share growth of as much as 4% for the year. (fool.com) The company’s May 19 earnings release said it was reaffirming full-year guidance rather than raising it after the quarter’s beat. (apnews.com) ### Why were investors watching Lowe’s next? Lowe’s was scheduled to report first-quarter 2026 results on May 20 before the opening bell, according to the company’s investor page. The company listed a 9 a.m. EDT earnings call for the same day. MarketBeat said consensus expectations were around $2.96 in earnings per share on roughly $22.98 billion in revenue. The timing put Lowe’s next in line to show whether the same pattern held across the sector: steadier demand from professionals, weaker appetite for bigger discretionary remodels, and continued pressure from mortgage rates and home prices. (corporate.homedepot.com) (corporate.lowes.com)