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The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance

Home Depot Reports Mixed Q1 2026 Results, Reaffirms Guidance

Home Depot exceeded earnings expectations, reaffirmed its guidance, and reported a 4.8% sales increase, despite challenges from a weak housing market and global uncertainties.

Home Depot's Earnings Anticipated Amid Rising Rates, Low Expectations, and Mixed Results.

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  <section data-block="information">
    <h3>Information</h3>
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  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>The Home Depot reported Q1 2026 sales of $41.8 billion, a 4.8% increase over last year. However, net earnings slipped slightly, indicating cautious consumer behavior amid ongoing economic concerns. The company maintains its full-year guidance, projecting modest growth and new store openings.</p>
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  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>Home Depot&#039;s Q1 2026 sales reached $41.8 billion, up 4.8%.</li><li>Net earnings decreased from $3.4 billion to $3.3 billion YoY.</li><li>Comparable sales growth of 0.6% indicates modest demand conditions.</li><li>Fiscal 2026 guidance remains unchanged, projecting modest growth.</li><li>Foreign exchange positively impacted sales by 0.55%.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>Lowe&#039;s Companies, Inc. (LOW)</strong>: Lowe&#039;s may also face similar consumer sentiment challenges.</li></ul>
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  <section data-block="category">
    <h3>Earnings</h3>
    <p>This article fits within the &#039;Earnings&#039; category, as it discusses Home Depot&#039;s quarterly financial performance and outlook, important for assessing future stock performance.</p>
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  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Sales growth of 4.8% in Q1 suggests stable demand despite economic pressures.</li><li>Net earnings decline could signal consumer hesitance affecting future performance.</li><li>1.3% drop in comparable customer transactions raises concerns for ongoing sales.</li><li>Guided growth rates for FY2026 could impact investor sentiment.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Q1 2026 sales: $41.8 billion, a 4.8% increase.</li><li>Net earnings down to $3.3 billion from $3.4 billion last year.</li><li>EPS of $3.30, down 4.3% YoY; adjusted EPS $3.43, down 3.7%.</li><li>Comparable sales growth of 0.6%; U.S. growth at 0.4%.</li><li>Fiscal 2026 guidance: 2.5% to 4.5% growth in total sales.</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>HD remains a hold; cautious consumer sentiment may pressure earnings growth.</p>
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<article>
    <h2>The Home Depot Reports Strong First Quarter Results for Fiscal 2026</h2>
    <p><strong>ATLANTA, May 19, 2026</strong> – The Home Depot<sup>®</sup> (NYSE: <a href="https://www.benzinga.com/quote/HD">HD</a>), the world's largest home improvement retailer, announced today a noteworthy increase in sales, reporting <strong>$41.8 billion</strong> for the first quarter of fiscal 2026. This figure reflects a growth of <strong>$1.9 billion</strong>, or <strong>4.8%</strong>, compared to the first quarter of fiscal 2025. Comparable sales for the same period have risen by <strong>0.6%</strong>, with U.S. comparable sales specifically increasing by <strong>0.4%</strong>. Furthermore, foreign exchange rates positively influenced total company comparable sales by approximately <strong>55 basis points</strong>.</p>

    <section>
        <h3>Net Earnings and Earnings Per Share</h3>
        <p>In fiscal Q1 2026, the company reported net earnings of <strong>$3.3 billion</strong>, equating to <strong>$3.30</strong> per diluted share. This compares to net earnings of <strong>$3.4 billion</strong> or <strong>$3.45</strong> per diluted share for the same period last year. Adjusted diluted earnings per share also saw a decline, coming in at <strong>$3.43</strong>, down from <strong>$3.56</strong> in Q1 2025.</p>
    </section>

    <section>
        <h3>CEO Remarks on Performance</h3>
        <p>Ted Decker, Chair, President, and CEO of The Home Depot, remarked, “Our first quarter results were within our expectations. The underlying demand in our business showed resilience similar to what we experienced throughout fiscal 2025, despite higher consumer uncertainty and pressures on housing affordability. I would like to express my gratitude to our associates for their exceptional customer service during this period.”</p>
    </section>

    <section>
        <h3>Fiscal 2026 Guidance Reaffirmed</h3>
        <p>The Home Depot has reaffirmed its guidance for fiscal 2026, outlining expectations for the upcoming year:</p>
        <ul>
            <li>Total sales growth projected between <strong>2.5%</strong> to <strong>4.5%</strong></li>
            <li>Comparable sales growth anticipated to be flat to <strong>2.0%</strong></li>
            <li>Opening of approximately <strong>15 new stores</strong></li>
            <li>Expected gross margin of around <strong>33.1%</strong></li>
            <li>Operating margin estimated between <strong>12.4%</strong> to <strong>12.6%</strong></li>
            <li>Adjusted operating margin forecasted at approximately <strong>12.8%</strong> to <strong>13.0%</strong></li>
            <li>Effective tax rate of approximately <strong>24.3%</strong></li>
            <li>Net interest expense anticipated to be around <strong>$2.3 billion</strong></li>
            <li>Diluted earnings per share expected to grow flat to <strong>4.0%</strong> from <strong>$14.23</strong> in fiscal 2025</li>
            <li>Adjusted diluted earnings per share projected to increase flat to <strong>4.0%</strong> from <strong>$14.69</strong> in fiscal 2025</li>
            <li>Capital expenditures estimated at approximately <strong>2.5%</strong> of total sales</li>
        </ul>
    </section>

    <section>
        <h3>Conference Call and Company Operations</h3>
        <p>The Home Depot will host a conference call at <strong>9 a.m. ET</strong> today to discuss the results further. This call will be accessible via webcast on the company's investor relations website at <a href="http://ir.homedepot.com/events-and-presentations">ir.homedepot.com/events-and-presentations</a>.</p>
        <p>As of the end of Q1, The Home Depot operated <strong>2,361 retail stores</strong> and over <strong>1,280 SRS locations</strong> throughout the U.S., Canada, and Mexico, employing over <strong>470,000 associates</strong>. The stock trades on the New York Stock Exchange under the symbol <a href="https://www.benzinga.com/quote/HD">HD</a> and is a component of the Dow Jones Industrial Average and the S&P 500 Index.</p>
    </section>

    <section>
        <h3>Cautionary Note Regarding Forward-Looking Statements</h3>
        <p>Certain statements in this release may constitute <em>“forward-looking statements”</em> under federal securities laws. These statements, which relate to anticipated financial performance and company operations, involve risks and uncertainties. Actual results may differ materially due to various factors, including market conditions, competition, and economic factors affecting the housing and home improvement markets.</p>
    </section>
</article>

The Home Depot reported Q1 2026 sales of $41.8 billion, a 4.8% increase over last year. However, net earnings slipped slightly, indicating cautious consumer behavior amid ongoing economic concerns. The company maintains its full-year guidance, projecting modest growth and new store openings.

The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Earnings

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