Home Depot (HD) Q1 2026 earnings

Home Depot stated Tuesday its core home-owner shopper stays resilient within the face of upper gasoline costs and plummeting client confidence, main the retailer to reaffirm its full-year steerage after beating fiscal first-quarter expectations.

“The homeowner in a relevant sense is perhaps more financially protected than other customer cohorts and so we continue to see engagement,” finance chief Richard McPhail instructed CNBC in an interview.

Still, within the face of rising geopolitical tensions, plummeting client confidence and a damaged housing market, these consumers are engaged “up to a certain point,” stated McPhail.

“They continue to tell us that they are going to defer their spend on larger projects,” he stated. “That’s consistent with what they’ve told us the last few years.”

Here’s how Home Depot did in contrast with what Wall Street was anticipating, primarily based on a survey of analysts by LSEG:

• Earnings per share: $3.43 adjusted vs $3.41 anticipated
• Revenue: $41.77 billion vs. $41.52 billion anticipated

The firm’s reported internet revenue for the three-month interval that ended May 3 was $3.29 billion, or $3.30 per share, in contrast with $3.43 billion, or $3.45 per share, a yr earlier. Excluding one-time gadgets together with prices associated to the worth of sure intangible property, Home Depot reported adjusted earnings per share of $3.43.

Sales rose to $41.77 billion, up virtually 5% from $39.86 billion a yr earlier.

The firm stated it continues to anticipate fiscal 2026 gross sales to develop between 2.5% and 4.5%, in comparison with expectations of roughly 4%, in line with LSEG. It’s anticipating adjusted earnings per share to develop as a lot as 4%, in comparison with expectations of two.4% progress, in line with LSEG.

Home Depot and the house enchancment sector general has been below strain because it has contended with decrease housing turnover, financial uncertainty and an ongoing delay in value initiatives.

Earlier this yr, there was optimism that Home Depot may see a reprieve as mortgage charges began to dip, however these hopes had been dashed after the battle within the Middle East started, main mortgage charges to spike as soon as once more.

In the meantime, Home Depot has been targeted on successful over extra professional consumers, like contractors and roofers, which at the moment make up about 50% of its income. In 2024, the retailer acquired SRS Distributionan organization that sells provides to roofing, landscaping and pool professionals, for $18.25 billionand final yr, it bought GMSa specialty constructing merchandise distributor.

Last week, SRS completed its acquisition of Mingledorff’s, a wholesale distributor of HVAC tools, components and provides that serves residential and industrial prospects. The deal permits Home Depot to faucet into a complete addressable market value round $100 billion, it stated.

“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,” McPhail stated. “We have a right to win that $700 billion, but we just don’t quite have the ability to win yet.”