Home Depot Q1 Revenues $41.8B, EPS $3.43 as Margins Squeeze
FND•Home Depot delivered Q1 2026 adjusted EPS of $3.43 and revenues of $41.77 billion, while gross margin fell 75 bps to 33.0% and operating margin declined to 11.9%. Net property and equipment rose $1.15 billion to $27.93 billion—double the $576 million gain in lease assets—reflecting targeted investment in professional distribution and automation.
1. Q1 Financial Results
Home Depot reported adjusted EPS of $3.43 and revenues of $41.77 billion for Q1 2026, representing 4.8% top-line growth year-over-year. This reflects continued sales momentum in both retail and professional segments.
2. Margin Compression Details
Gross margin contracted by 75 basis points to 33.0%, while operating margin dipped from 12.9% to 11.9% compared with the prior year quarter. The declines signal rising operating expenses and product cost pressures.
3. Asset Expansion and Capital Expenditure
Net property and equipment increased by $1.15 billion to $27.93 billion, compared with a $576 million rise in operating lease right-of-use assets to $9.275 billion. This indicates a strategic emphasis on owned real estate over leased facilities.
4. Professional Market Infrastructure Investments
A significant portion of the $1.15 billion asset growth is directed toward automated flatbed fulfillment centers, industrial logistics hubs and commercial supply yards. These enhancements aim to capture the $700 billion professional contractor market.
