Home Depot Earnings Reaffirm Guidance Amid Sales Gain
Home Depot earnings modestly beat estimates and reaffirmed full-year guidance, likely reshaping trader positioning around Pro exposure and housing risk.
KEY TAKEAWAYS
- Net sales rose 4.8% to $41.8 billion and comps increased 0.6% overall.
- Company reaffirmed fiscal 2026 guidance for low-single-digit sales growth and flat to slightly down EPS.
- Resilient Pro demand and smaller repair projects helped offset housing weakness.
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The Home Depot, Inc. (NYSE: HD) reported first-quarter fiscal 2026 results on May 19, 2026, modestly exceeding expectations and reaffirming its full-year guidance. The earnings were supported by steady demand from professional customers and smaller repair projects despite a weak housing market.
First-Quarter Results
The company said in a press release that net sales rose 4.8% year over year to $41.8 billion. Comparable sales, or Home Depot comps, increased 0.6% overall and 0.4% in the U.S. Profit declined year over year, but operating margins remained near recent levels and aligned with expectations. Market reports described the quarter as a modest top- and bottom-line beat, which management said allowed it to maintain the full-year plan.
Guidance and Market Context
The release reaffirmed Home Depot guidance for fiscal 2026, calling for low-single-digit sales growth and flat to slightly lower diluted earnings per share compared with the prior year. Management highlighted that the quarter’s strength reflected resilient demand from professional customers and smaller, budget-conscious repair and maintenance projects. Meanwhile, large discretionary and big-ticket remodeling categories remained pressured by higher mortgage rates, weak housing turnover, and elevated fuel costs.
The reaffirmation and the pattern of Pro-led sales growth focus investor attention on whether professional spending will hold as housing normalizes and how that will affect the company’s earnings under the reaffirmed guidance. The company said it will continue investing in its Pro ecosystem, supply chain, and technology to support long-term growth.
