The Home Depot, Inc. (HD) reported first-quarter fiscal 2026 earnings, with revenues rising 4.8% year-over-year to $41.77 billion, exceeding the Zacks Consensus Estimate of $41.49 billion. Adjusted earnings per share were $3.43, slightly beating the consensus of $3.40. Management reaffirmed its full-year guidance, projecting total sales growth of 2.5% to 4.5% and flat to 2.0% growth in comparable sales.
CEO Ted Decker indicated that the demand environment remains steady, reminiscent of fiscal 2025, but noted continuous pressure from housing affordability and consumer uncertainty. The company is prioritizing growth in the Pro customer segment, which outperformed DIY, and aims for $400 million in cross-sell run rate this year following recent acquisitions.
Despite a 75 basis point drop in gross margin to 33.0% and a decline in operating margin to 11.9%, Home Depot continued to invest in its stores and fulfillment infrastructure, spending approximately $845 million in capital expenditures during the quarter. The executive team remains committed to their operational strategy amid shifting market conditions.
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