Home Depot (HD) Q1 2026 earnings

Home Depot It said Tuesday that its core homeowner customers remained resilient in the face of higher gas prices and falling consumer confidence, prompting the retailer to reaffirm its full-year guidance after beating fiscal first-quarter expectations.

“The homeowner is, in a sense, more financially protected than other customer groups, and that’s why we continue to see engagement,” finance chief Richard McPhail told CNBC in an interview.

In the face of rising geopolitical tensions, falling consumer confidence and a deteriorating housing market, there is still shopper interest “to a certain point,” McPhail said.

“They continue to tell us they will delay spending on larger projects,” he said. “That’s consistent with what they’ve been telling us for the last few years.”

Here’s how Home Depot performs compared to Wall Street’s expectations, according to a survey of analysts conducted by LSEG:

• Earnings per share: $3.43, expected $3.41
• Revenue: $41.77 billion, expected $41.52 billion

The company’s reported net income for the three months ended May 3 was $3.29 billion, or $3.30 per share, compared to $3.43 billion, or $3.45 per share, a year earlier. Home Depot reported adjusted earnings per share of $3.43, excluding one-time items that include costs related to the value of certain intangible assets.

Sales rose almost 5% to $41.77 billion from $39.86 billion a year earlier.

The company said it continues to expect fiscal 2026 sales to rise between 2.5% and 4.5%, compared to expectations of roughly 4%, according to LSEG. According to LSEG, adjusted earnings per share are expected to grow by up to 4%, compared to growth expectations of 2.4%.

Home Depot and the home improvement industry in general are under pressure as they struggle with low housing turnover, economic uncertainty and ongoing delays on pricier projects.

There was optimism earlier this year that Home Depot might see a reprieve as mortgage interest rates began to fall, but those hopes were dashed with the onset of conflict in the Middle East, causing mortgage rates to rise once again.

Home Depot, meanwhile, is focused on winning over more professional customers like contractors and roofers, which now account for about 50% of its revenue. The retailer acquired SRS Distribution, which sells supplies to roofing, landscaping and pool professionals, for $18.25 billion in 2024, and last year acquired custom building products distributor GMS.

Last week on SRS completed the purchase Mingledorff’s is a wholesale distributor of HVAC equipment, parts and supplies serving residential and commercial customers. The deal gives Home Depot access to a total addressable market worth approximately $100 billion, he said.

“Everything we do to grow our professional capabilities — and through the acquisitions we’ve made over the last few years — is to help us gain more share of the $700 billion professional market,” McPhail said. “We have the right to earn this $700 billion, but we don’t have the ability to earn it yet.”