Home Depot Q1 2026 Earnings Beat

CNBC reported Tuesday that Home Depot posted stronger-than-expected first-quarter results, with revenue climbing nearly 5% year over year and the retailer holding its full-year outlook steady. The home improvement giant’s core homeowner customer remains active, even as broader confidence readings deteriorate and fuel costs bite household budgets.

Earnings Top Forecasts but Comparable Sales Lag

Home Depot’s fiscal first quarter, which ended May 3, produced adjusted earnings of $3.43 per share against a Wall Street consensus of $3.41. Total revenue reached $41.77 billion, ahead of the $41.52 billion analysts had expected, according to LSEG data cited by CNBC.

Reported net income, however, slipped to $3.29 billion from $3.43 billion in the same period last year. Comparable sales grew just 0.6%, trailing the 0.8% StreetAccount estimate. Comparable transactions fell 1.3%, marking the fourth consecutive quarterly decline. Gross margin came in at 33%, slightly below expectations of 33.2%.

CFO Points to Limits on Big-Ticket Spending

Chief Financial Officer Richard McPhail told CNBC that homeowners as a group are somewhat insulated from broader economic pressures compared with other consumer segments. He noted, though, that engagement has its limits. Shoppers are continuing to defer spending on larger, more expensive projects, a pattern that has persisted for several years. The company’s full-year guidance calls for sales growth of 2.5% to 4.5% and adjusted EPS growth of up to 4%.

Background: A Sector Still Waiting for Housing Relief

Home Depot has faced a prolonged stretch of subdued demand. Lower housing turnover, stalled mortgage activity, and economic uncertainty have all weighed on the sector. Early 2026 brought brief optimism as mortgage rates edged lower, but fresh geopolitical tensions pushed rates back up, erasing that reprieve.

Against that backdrop, the company has aggressively targeted professional contractors. In 2024, it acquired SRS Distribution for $18.25 billion, a roofing and landscaping supply business. Last year it added GMS, a specialty building products distributor. Last week, SRS closed its own acquisition of Mingledorff’s, an HVAC wholesale distributor.

Pro Market Push Anchors Long-Term Strategy

Professional customers now account for roughly half of Home Depot’s total revenue. McPhail described the addressable pro market as worth approximately $700 billion. He said the company’s acquisition strategy is designed to build the capabilities needed to compete more fully in that space. The HVAC move alone opens a total addressable market the company values at around $100 billion.

Shares edged higher in premarket trading following the release.

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