Home Depot (HD) Q1 2026 Earnings
How Did HD Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: +1.45%.
Did HD Beat Earnings? Q1 2026 Results
Yes. Home Depot reported Q1 2026 earnings of $3.43 a share on May 19, 2026, beating the $3.41 consensus estimate by 0.7%. Revenue was $41.8B against a $41.5B estimate.
Home Depot delivered a steady first-quarter fiscal 2026 performance, posting adjusted diluted EPS of $3.43 against a consensus estimate of $3.41, a 0.69% beat, while revenue of $41.77 billion edged past the $41.51 billion estimate by 0.61% and rose 4.8% year over year. The top-line growth was driven in part by a favorable foreign exchange tailwind of approximately 55 basis points and a more than 10% increase in digital sales, reflecting the early payoff of the company's push to integrate stores, online platforms, and supply chains into a unified retail experience. However, profitability remained under pressure, with cost of sales growing faster than revenue and compressing gross margin to 33.0% from 33.8% a year ago, a headwind that weighed on both GAAP and adjusted operating margins. CEO Ted Decker acknowledged "greater consumer uncertainty and housing affordability pressure" but characterized underlying demand as stable relative to fiscal 2025 trends. The company reaffirmed its full-year guidance, calling for total sales growth of 2.5% to 4.5% and adjusted diluted EPS growth of approximately flat to 4.0% off a $14.69 base.
- Comparable sales increased 0.6% overall and 0.4% in the U.S.
- Comparable average ticket increased 2.2%, partially offset by a 1.3% decline in comparable customer transactions
- Foreign exchange rates positively impacted total company comparable sales by approximately 55 basis points
- Average ticket rose to $92.76 from $90.71 year-over-year
“Our first quarter results were in line with our expectations. The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure.”
Home Depot CEO, on the earnings call
What Was Home Depot's Outlook in Q1 2026?
The Home Depot reaffirmed its fiscal 2026 guidance: total sales growth of approximately 2.5% to 4.5%; comparable sales growth of approximately flat to 2.0%; approximately 15 new stores; gross margin of approximately 33.1%; operating margin of approximately 12.4% to 12.6% (adjusted operating margin of approximately 12.8% to 13.0%); effective tax rate of approximately 24.3%; net interest expense of approximately $2.3 billion; diluted EPS to grow approximately flat to 4.0% from $14.23 in fiscal 2025; adjusted diluted EPS to grow approximately flat to 4.0% from $14.69 in fiscal 2025; and capital expenditures of approximately 2.5% of total sales. Adjusted guidance excludes an expected after-tax impact of approximately $0.50 from acquired intangible asset amortization.
HD YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $41.8B | $39.9B | +4.8% |
| Gross Profit | $13.8B | $13.5B | +2.4% |
| Operating Income | $5.0B | $5.1B | −3.0% |
| Net Income | $3.3B | $3.4B | −4.2% |
Figures from SEC filings and company reports. Not investment advice.