Home Depot Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.45%.
Did HD Beat Earnings? Q1 2026 Results
Home Depot delivered a largely in-line first quarter for fiscal 2026, posting adjusted diluted EPS of $3.43 against a year-ago figure of $3.56, as revenue climbed 4.8% to $41.77 billion, buoyed significantly by the ongoing integration of the SRS Distribution acquisition. Comparable sales rose just 0.6%, with U.S. comps up 0.4%, as softer customer traffic, down 1.3% year over year, was partially offset by a 2.2% gain in average ticket to $92.76, suggesting that while fewer customers came through the door, those who did spent more. The acquisition's cost footprint weighed on profitability, with GAAP operating margin compressing to 11.9% from 12.9% a year ago, as SG&A costs rose 5.7% and acquired intangible amortization from SRS alone reached $119.00 million. CEO Ted Decker cited "greater consumer uncertainty and housing affordability pressure" as ongoing headwinds, themes that had shadowed the stock ahead of the report. Despite the margin pressure, management reaffirmed its full-year fiscal 2026 outlook, targeting 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.
- Average ticket increased 2.2% to $92.76
- Foreign exchange rates positively impacted total company comparable sales by approximately 55 basis points
- SRS Distribution acquisition contributed to total sales growth beyond comparable sales
- Comparable customer transactions declined 1.3%
“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
Forward Guidance & Outlook
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% (excluding ~40 bps impact from acquired intangible asset amortization); effective tax rate of approximately 24.3%; net interest expense of approximately $2.3 billion; diluted EPS growth of approximately flat to 4.0% from $14.23 in fiscal 2025; adjusted diluted EPS growth of approximately flat to 4.0% from $14.69 in fiscal 2025 (excluding ~$0.50 after-tax impact from acquired intangible asset amortization); and capital expenditures of approximately 2.5% of total sales.
HD YoY Financials
Figures from SEC filings and company reports. Not investment advice.