Home Depot reported first-quarter sales of $41.8 billionup 4.8% from a year earlier, and reaffirmed its full-year guidance on Tuesday, as the company said demand remained consistent with trends seen throughout fiscal 2025.
Wall Street had penciled in adjusted EPS of $3.41 and revenue of $41.52 billion, per CNBCmeaning the company cleared both bars — posting $3.43 in adjusted EPS and $41.77 billion in revenue. That compares with adjusted EPS of $3.56 in the year-ago period.
On a per-share basis, the company earned $3.30 diluted, against $3.45 diluted a year ago, as total quarterly net income slipped to $3.29 billion from $3.43 billion — a decline of 4.2%.
Comparable sales rose 0.6% for the quarter, with U.S. comparable sales up 0.4%. Comparable customer transactions fell 1.3%, while the average ticket rose 2.3% to $92.76, the company said.
“The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure,” CEO Ted Decker said in a statement.
Home Depot reaffirmed its full fiscal 2026 guidance, calling for total sales growth of 2.5% to 4.5% and comparable sales growth of approximately flat to 2%. The company said it expects adjusted diluted EPS to grow flat to 4% from $14.69 in fiscal 2025.
Despite that resilience, CFO Richard McPhail cautioned that homeowners are pulling back on bigger-ticket work. “They continue to tell us that they are going to defer their spend on larger projects,” he said in an interview with CNBC. “That’s consistent with what they’ve told us the last few years.”
Professional customers — contractors, roofers and similar tradespeople — generate roughly half of Home Depot’s revenue, and the company has pursued a string of acquisitions to deepen that business. Its 2024 purchase of SRS Distribution brought in a network serving roofing, landscaping, and pool pros, while the more recent addition of GMS extended its reach into specialty building products. SRS expanded further last week when it closed on Mingledorff’s, a wholesale distributor of HVAC equipment, parts, and supplies.
McPhail framed the acquisition push in broader strategic terms, telling CNBC: “All of the things we’re doing to build out our pro capabilities — and through the acquisitions we’ve made over the past several years — is to help us gain more share in the $700 billion pro market.”
At the end of the first quarter, Home Depot operated 2,361 retail stores and over 1,280 SRS locations, employing more than 470,000 people, the company said.
Home Depot stock rose in premarket trading on Tuesday.