Home Depot (HD) · Retail
Home Depot Q1 FY2026 earnings: summary, key numbers & outlook
Results filed 19 May 2026 · Quarter ended 3 May 2026
Official transcript (PDF) ↗Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
The Home Depot reported sales of $41.8 billion for the first quarter of fiscal 2026, up 4.8%, with comparable sales up 0.6%, net earnings of $3.3 billion, or $3.30 per diluted share, and adjusted diluted earnings per share of $3.43.
Home Depot's first-quarter sales rose 4.8% to $41.8 billion, but only 0.6% of that came from stores open at least a year. Net earnings fell to $3.3 billion, or $3.30 per diluted share, from $3.45 a year ago. Operating margin slipped to 11.9% from 12.9%. Customers made fewer trips, with comparable transactions down 1.3%, but spent more per trip, with average ticket up 2.2%. Operating cash flow was $6,032 million, up from $4,325 million.
Management reaffirmed its fiscal 2026 outlook: total sales growth of about 2.5% to 4.5%, comparable sales of about flat to 2.0%, and diluted earnings per share growth of about flat to 4.0% from $14.23. The CEO said demand looked similar to fiscal 2025 despite greater consumer uncertainty and housing affordability pressure. The main risk is that weak housing activity keeps comparable sales near zero while costs, including amortization from acquisitions, grow faster than sales.
Key numbers
- Net sales · GAAP
- $41.8 billion
- Net earnings · GAAP
- $3.3 billion
- Diluted earnings per share · GAAP
- $3.30
- Adjusted diluted earnings per share · non-GAAP
- $3.43
- Operating income · GAAP
- $5.0B
- Operating margin · GAAP
- 11.9%
- Net cash provided by operating activities · GAAP
- $6.0B
- Adjusted operating margin · non-GAAP
- 12.3%
up 4.8% from the first quarter of fiscal 2025
down from $3.4 billion in the same period of fiscal 2025
down from $3.45 in the same period of fiscal 2025
down from $3.56 in the same period of fiscal 2025
down 3.0% from $5,133
down from 12.9% a year ago
up from 4,325 a year ago
down from 13.2% a year ago
| Segment or metric | Value | Change |
|---|---|---|
| Comparable sales | 0.6% | compared with (0.3)% a year ago |
| U.S. comparable sales | 0.4% | |
| Comparable customer transactions | (1.3)% | compared with (0.5)% a year ago |
| Comparable average ticket | 2.2% | compared with —% a year ago |
| Average ticket | $92.76 | up 2.3% from $90.71 |
| Retail stores | 2,361 |
Where each number comes from
- Net sales: “today reported sales of $41.8 billion for the first quarter of fiscal 2026, an increase of $1.9 billion, or 4.8% from the first quarter of fiscal 2025.”
- Net earnings: “Net earnings for the first quarter of fiscal 2026 were $3.3 billion, or $3.30 per diluted share, compared with net earnings of $3.4 billion, or $3.45 per diluted share”
- Diluted earnings per share: “Net earnings for the first quarter of fiscal 2026 were $3.3 billion, or $3.30 per diluted share, compared with net earnings of $3.4 billion, or $3.45 per diluted share”
- Adjusted diluted earnings per share: “Adjusted(1) diluted earnings per share for the first quarter of fiscal 2026 were $3.43, compared with adjusted diluted earnings per share of $3.56 in the same period of fiscal 2025.”
- Operating income: “Operating income (GAAP) | $4,981 | $5,133 | (3.0)% Operating margin (1) | 11.9% | 12.9% Acquired intangible asset amortization (2) | 171 | 139”
- Operating margin: “Operating income (GAAP) | $4,981 | $5,133 | (3.0)% Operating margin (1) | 11.9% | 12.9% Acquired intangible asset amortization (2) | 171 | 139”
- Net cash provided by operating activities: “Changes in deferred income taxes | 65 | (3) Other operating activities | 82 | (25) Net cash provided by operating activities | 6,032 | 4,325 Cash Flows from Investing Activities”
- Adjusted operating margin: “Adjusted operating income (Non-GAAP) | $5,152 | $5,272 | (2.3)% Adjusted operating margin (Non-GAAP) (3) | 12.3% | 13.2%”
- Comparable sales: “Comparable sales for the first quarter of fiscal 2026 increased 0.6%, and comparable sales in the U.S. increased 0.4%. For the first quarter of fiscal 2026, foreign exchange rates positively impacted”
- U.S. comparable sales: “Comparable sales for the first quarter of fiscal 2026 increased 0.6%, and comparable sales in the U.S. increased 0.4%. For the first quarter of fiscal 2026, foreign exchange rates positively impacted”
- Comparable customer transactions: “Comparable customer transactions (% change) (1) | (1.3)% | (0.5)% | N/A Comparable average ticket (% change) (1) | 2.2% | —% | N/A Customer transactions (in millions) (1) | 391.1”
- Comparable average ticket: “Comparable customer transactions (% change) (1) | (1.3)% | (0.5)% | N/A Comparable average ticket (% change) (1) | 2.2% | —% | N/A Customer transactions (in millions) (1) | 391.1”
- Average ticket: “Customer transactions (in millions) (1) | 391.1 | 394.8 | (0.9)% Average ticket (1) | $92.76 | $90.71 | 2.3 ————— (1)Customer transactions and average ticket measures”
- Retail stores: “At the end of the first quarter, the company operated a total of 2,361 retail stores and over 1,280 SRS locations across all 50 states”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q1 FY2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $41.8B | +4.8% | +9.3% |
| Operating income | $5.0B | −3.0% | +29.4% |
| Net income | $3.3B | −4.2% | +27.9% |
| Diluted EPS | $3.30 | −4.3% | — |
| Free cash flow | $5.2B | +47.4% | +126.6% |
| Gross margin | 33.0% | −0.8 pts | +0.4 pts |
| Operating margin | 11.9% | −1.0 pts | +1.8 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Total sales growth | fiscal 2026 | approximately 2.5% to 4.5% |
| Comparable sales growth | fiscal 2026 | approximately flat to 2.0% |
| New stores | fiscal 2026 | Approximately 15 |
| Gross margin | fiscal 2026 | approximately 33.1% |
| Operating margin | fiscal 2026 | approximately 12.4% to 12.6% |
| Adjusted operating margin | fiscal 2026 | approximately 12.8% to 13.0% |
| Effective tax rate | fiscal 2026 | approximately 24.3% |
| Net interest expense | fiscal 2026 | approximately $2.3 billion |
| Diluted EPS growth from $14.23 in fiscal 2025 | fiscal 2026 | approximately flat to 4.0% |
| Adjusted diluted EPS growth from $14.69 in fiscal 2025 | fiscal 2026 | approximately flat to 4.0% |
| Capital expenditures as a share of total sales | fiscal 2026 | approximately 2.5% |
Key takeaways
Sales grew 4.8% but comparable sales only 0.6%
Total sales reached $41.8 billion, up 4.8%, while comparable sales increased just 0.6% and U.S. comparable sales increased 0.4%. Foreign exchange added approximately 55 basis points to total company comparable sales.
Profit fell even as sales rose
Net earnings were $3.3 billion, or $3.30 per diluted share, versus $3.45 a year earlier. Operating income fell 3.0% to $4,981 million as operating expenses rose 5.7%.
Fewer customer visits, bigger tickets
Comparable customer transactions fell 1.3% while comparable average ticket rose 2.2%. Customer transactions were 391.1 million versus 394.8 million a year ago.
Full-year guidance reaffirmed unchanged
Management kept fiscal 2026 guidance of total sales growth of approximately 2.5% to 4.5% and diluted earnings per share growth of approximately flat to 4.0% from $14.23. Gross margin is expected at approximately 33.1%.
Operating cash flow jumped on working capital
Net cash provided by operating activities was 6,032 million versus 4,325 million, helped by working capital changes of 1,337 million versus (244) million. Cash dividends were 2,320 million.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q3 FY24 | $40.2B |
| Q4 FY24 | $39.7B * |
| Q1 FY25 | $39.9B |
| Q2 FY25 | $45.3B |
| Q3 FY25 | $41.4B |
| Q4 FY25 | $38.2B * |
| Q1 FY26 | $41.8B |
| Q2 FY26 | $47.9B |
Data
| Q3 FY24 | $3.67 |
| Q1 FY25 | $3.45 |
| Q2 FY25 | $4.58 |
| Q3 FY25 | $3.62 |
| Q1 FY26 | $3.30 |
| Q2 FY26 | $4.79 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q3 FY24 | 13.5% |
| Q4 FY24 | 11.3% |
| Q1 FY25 | 12.9% |
| Q2 FY25 | 14.5% |
| Q3 FY25 | 12.9% |
| Q4 FY25 | 10.1% |
| Q1 FY26 | 11.9% |
| Q2 FY26 | 14.3% |
Data
| Q3 FY24 | $3.4B |
| Q4 FY24 | $3.6B |
| Q1 FY25 | $3.5B |
| Q2 FY25 | $3.7B |
| Q3 FY25 | $3.1B |
| Q4 FY25 | $2.3B |
| Q1 FY26 | $5.2B |
| Q2 FY26 | $4.5B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Home Depot's first quarter fiscal 2026 results?
Sales were $41.8 billion, up 4.8%, and comparable sales rose 0.6%. Net earnings were $3.3 billion, or $3.30 per diluted share, down from $3.45 a year earlier.
How did Home Depot's margins change in the quarter?
GAAP operating margin was 11.9%, down from 12.9% a year ago. Adjusted operating margin was 12.3%, down from 13.2%.
Did Home Depot change its fiscal 2026 guidance?
No, it reaffirmed guidance, including total sales growth of approximately 2.5% to 4.5% and comparable sales growth of approximately flat to 2.0%. It also kept diluted EPS growth at approximately flat to 4.0% from $14.23.
What is driving comparable sales, traffic or ticket?
Comparable average ticket rose 2.2% while comparable customer transactions fell 1.3%. Higher spending per visit offset fewer visits.
What is Home Depot's adjusted EPS and how is it defined?
Adjusted diluted EPS was $3.43 versus $3.56 a year ago. It excludes acquired intangible asset amortization, net of related tax effects.
Documents
From Home Depot investor relations
SEC filing