Home Depot Q1 Sales Rise 4.8% to $41.8B, EPS Beats Forecast
Home Depot reported Q1 sales of $41.8 billion, up 4.8% year-over-year, and adjusted EPS of $3.43, topping analyst targets, though net income fell 4.2% to $3.29 billion. The retailer reaffirmed fiscal 2026 guidance for 2.5–4.5% sales growth, flat to 2% comps and up to 4% EPS growth.
1. First-Quarter Financial Results
Home Depot posted Q1 sales of $41.77 billion, up 4.8% year-over-year, and adjusted EPS of $3.43, exceeding forecasts. Net income declined 4.2% to $3.29 billion, with diluted EPS slipping to $3.30 from $3.45 a year earlier.
2. Comparable Sales and Ticket Trends
Comparable sales grew 0.6% overall and 0.4% in the U.S., while customer transactions fell 1.3% and average ticket size rose 2.3% to $92.76, indicating higher spending per visit despite fewer transactions.
3. Full-Year Guidance Reaffirmed
The company reaffirmed fiscal 2026 guidance calling for 2.5–4.5% total sales growth, flat to 2% comparable sales and flat to 4% adjusted EPS growth from $14.69. The CFO noted homeowners may defer larger projects under affordability pressures.
4. Strategic Acquisitions and Pro Market Focus
Professional customers generate roughly half of Home Depot’s revenue, and recent deals—SRS Distribution, GMS and Mingledorff’s HVAC distributor—aim to deepen pro capabilities and capture share of the $700 billion contractor market.