The Home Depot®, the world’s largest home improvement retailer, announced its financial results for the first quarter of fiscal 2026 on May 19, 2026. The company reported sales of $41.8 billion, reflecting a $1.9 billion increase, or 4.8%, compared to the same period in fiscal 2025. This growth is a positive sign in an environment characterized by consumer uncertainty and pressures surrounding housing affordability.

Comparable sales for the quarter rose modestly by 0.6%, with comparable sales in the U.S. increasing by 0.4%. Notably, foreign exchange rates had a favorable impact on total company comparable sales, contributing approximately 55 basis points to the overall growth.

Earnings Performance

Net earnings for the first quarter of fiscal 2026 totaled $3.3 billion, translating to $3.30 per diluted share. This marks a slight decline from the $3.4 billion, or $3.45 per diluted share, reported in the same quarter of fiscal 2025. Adjusted diluted earnings per share were recorded at $3.43, down from $3.56 in the prior year’s quarter.

Ted Decker, chair, president, and CEO of Home Depot, expressed confidence in the company’s performance. “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,” he stated. Decker also extended gratitude to Home Depot associates for their unwavering dedication and service during the quarter.

1. Fiscal 2026 Guidance Reaffirmed

Home Depot has reaffirmed its guidance for fiscal 2026, signaling optimism despite the challenging economic landscape. The key components of the guidance are as follows:

Total Sales Growth: Projected to be approximately 2.5% to 4.5%

Comparable Sales Growth: Expected to be flat to 2.0%

New Store Openings: Approximately 15 new stores planned

Gross Margin: Estimated at around 33.1%

Operating Margin: Expected to range from 12.4% to 12.6%

Adjusted Operating Margin: Forecasted to be approximately 12.8% to 13.0%

Effective Tax Rate: Estimated at about 24.3%

Net Interest Expense: Anticipated to be around $2.3 billion

Earnings Per Share Growth: Diluted EPS expected to grow flat to 4.0% from $14.23 in fiscal 2025

Adjusted Diluted EPS Growth: Expected to grow flat to 4.0% from $14.69 in fiscal 2025

Capital Expenditures: Projected to be approximately 2.5% of total sales

2. Store Network and Employment

At the conclusion of the first quarter, Home Depot operated a total of 2,361 retail stores along with over 1,280 SRS (Specialty Retail Services) locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces, and Mexico. The company boasts a workforce of over 470,000 associates, underscoring its substantial role in the retail and home improvement sectors.

Home Depot's stock trades on the New York Stock Exchange under the ticker symbol HD and is a key component of both the Dow Jones Industrial Average and the Standard & Poor's 500 index.

3. Conclusion

Home Depot's first-quarter results for fiscal 2026 reflect a stable performance amid a complex economic backdrop. The reaffirmation of the company's guidance suggests a strategic focus on maintaining growth and navigating market challenges effectively. As the company prepares to discuss these results further in a conference call scheduled for later today, investors and analysts alike will be keen to gain deeper insights into Home Depot's strategies and outlook for the remainder of the fiscal year.

Original press release