TLDR
- Home Depot posted Q1 adjusted EPS of $3.43, topping the $3.41 analyst estimate, though down from $3.56 a year ago
- Revenue came in at $41.77 billion, up 4.8% year-over-year, beating expectations of $41.59 billion
- Comparable sales rose 0.6%, with U.S. comp sales up 0.4%; average ticket climbed 2.3% to $92.76
- The company reaffirmed full-year guidance for comparable sales growth of flat to 2% and adjusted EPS growth of flat to 4%
- HD stock is down more than 12% since the start of 2026, underperforming Lowe’s and the S&P 500
Home Depot (HD) stock edged up 0.7% in premarket trading Tuesday after the company reported first-quarter results that came in ahead of Wall Street estimates.
Adjusted EPS landed at $3.43, just above the $3.41 analysts had expected. That’s down from $3.56 in the same period last year. Revenue rose 4.8% to $41.77 billion, beating estimates of $41.59 billion.
Net income for the quarter slipped 4.2% to $3.29 billion, from $3.43 billion a year ago. Diluted EPS came in at $3.30, versus $3.45 in Q1 2025.
$HD Q1’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $41.77B (Est $41.51B) 🟢; +4.8% YoY
🔹 Adj. EPS: $3.43 (Est $3.41) 🟢
🔹 Comp Sales: +0.6% (Est +0.9%) 🔴
🔹 U.S. Comp Sales: +0.4%
🔹 Net Earnings: $3.3BFY26 Guide:
🔹 Comp Sales Growth: Flat to +2.0% (Est +1.55%) 🟡
🔹 Sales Growth:… pic.twitter.com/ZgRLbAzHAA— Wall St Engine (@wallstengine) May 19, 2026
Comparable sales rose 0.6% overall, with U.S. comparable sales up 0.4%. Customer transactions fell 1.3%, but the average ticket rose 2.3% to $92.76.
CEO Ted Decker said demand was “relatively similar” to what the company saw throughout fiscal 2025, and noted that consumer uncertainty and housing affordability pressure remain headwinds.
Home Depot reiterated its full-year 2026 outlook, calling for total sales growth of 2.5% to 4.5%, comparable sales growth of flat to 2%, and adjusted diluted EPS growth of flat to 4% from the $14.69 reported in fiscal 2025.
Bigger Projects Still on Hold
CFO Richard McPhail flagged a continued reluctance among homeowners to take on large-scale work. “They continue to tell us that they are going to defer their spend on larger projects,” he told CNBC. “That’s consistent with what they’ve told us the last few years.”
HD stock has fallen more than 12% since the start of 2026, lagging behind Lowe’s, which is down less than 10%, and well behind the S&P 500, which is up nearly 8% over the same stretch.
Oppenheimer analyst Brian Nagel, writing ahead of the report, said he was “becoming incrementally concerned that shorter-term macro headwinds may be turning more challenging, as rates shift higher, and confidence wanes.”
Inflation hitting three-year highs and wages failing to keep pace have pushed out the timeline on any meaningful sales recovery for home improvement retailers.
Pro Customer Push Continues
Professional customers — contractors, roofers, and tradespeople — account for roughly half of Home Depot’s revenue, and the company has been doubling down on that segment.
Its 2024 acquisition of SRS Distribution added a network serving roofing, landscaping, and pool pros. The more recent GMS acquisition extended its reach into specialty building products.
Last week, SRS closed on Mingledorff’s, a wholesale distributor of HVAC equipment, parts, and supplies.
McPhail said the acquisition strategy is about capturing more of the $700 billion pro market.
At the end of Q1, Home Depot operated 2,361 retail stores and over 1,280 SRS locations, with more than 470,000 employees.
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