Home Depot (HD) Stock Climbs After Q1 Earnings Top Wall Street Forecasts

TLDR

• Home Depot posted Q1 adjusted EPS of $3.43, topping the $3.41 analyst estimate, though down from $3.56 a year ago
• Revenue came in at $41.77 billion, up 4.8% year-over-year, beating expectations of $41.59 billion
• Comparable sales rose 0.6%, with U.S. comp sales up 0.4%; average ticket climbed 2.3% to $92.76
• The company reaffirmed full-year guidance for comparable sales growth of flat to 2% and adjusted EPS growth of flat to 4%
• HD stock is down more than 12% since the start of 2026, underperforming Lowe’s and the S&P 500

Home Depot (HD) stock edged up 0.7% in premarket trading Tuesday after the company reported first-quarter results that came in ahead of Wall Street estimates.

The Home Depot, Inc., HD

Adjusted EPS landed at $3.43, just above the $3.41 analysts had expected. That’s down from $3.56 in the same period last year. Revenue rose 4.8% to $41.77 billion, beating estimates of $41.59 billion.

Net income for the quarter slipped 4.2% to $3.29 billion, from $3.43 billion a year ago. Diluted EPS came in at $3.30, versus $3.45 in Q1 2025.

Comparable sales rose 0.6% overall, with U.S. comparable sales up 0.4%. Customer transactions fell 1.3%, but the average ticket rose 2.3% to $92.76.

Home Depot reiterated its full-year 2026 outlook, calling for total sales growth of 2.5% to 4.5%, comparable sales growth of flat to 2%, and adjusted diluted EPS growth of flat to 4% from the $14.69 reported in fiscal 2025.

Bigger Projects Still on Hold

HD stock has fallen more than 12% since the start of 2026, lagging behind Lowe’s, which is down less than 10%, and well behind the S&P 500, which is up nearly 8% over the same stretch.

Inflation hitting three-year highs and wages failing to keep pace have pushed out the timeline on any meaningful sales recovery for home improvement retailers.

Pro Customer Push Continues

Professional customers — contractors, roofers, and tradespeople — account for roughly half of Home Depot’s revenue, and the company has been doubling down on that segment.

Its 2024 acquisition of SRS Distribution added a network serving roofing, landscaping, and pool pros. The more recent GMS acquisition extended its reach into specialty building products.

Last week, SRS closed on Mingledorff’s, a wholesale distributor of HVAC equipment, parts, and supplies.

McPhail said the acquisition strategy is about capturing more of the $700 billion pro market.

At the end of Q1, Home Depot operated 2,361 retail stores and over 1,280 SRS locations, with more than 470,000 employees.

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