# Home Depot (HD) Q1 FY2026 earnings

Results filed 2026-05-19 for the quarter ended 2026-05-03. Source page: https://earnings.opennash.com/companies/hd/2026-q1/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/354950/000035495026000101/0000354950-26-000101-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Net sales | $41.8 billion | up 4.8% from the first quarter of fiscal 2025 | GAAP |
| Net earnings | $3.3 billion | down from $3.4 billion in the same period of fiscal 2025 | GAAP |
| Diluted earnings per share | $3.30 | down from $3.45 in the same period of fiscal 2025 | GAAP |
| Adjusted diluted earnings per share | $3.43 | down from $3.56 in the same period of fiscal 2025 | non-GAAP |
| Operating income | $4,981 | down 3.0% from $5,133 | GAAP |
| Operating margin | 11.9% | down from 12.9% a year ago | GAAP |
| Net cash provided by operating activities | 6,032 | up from 4,325 a year ago | GAAP |
| Adjusted operating margin | 12.3% | down from 13.2% a year ago | non-GAAP |

## Segments and operating metrics

| Name | 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 |  |

## 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

1. **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.
2. **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%.
3. **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.
4. **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%.
5. **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.

## 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.

## Slides and investor documents

- [Company's official transcript](https://ir.homedepot.com/~/media/Files/H/HomeDepot-IR/2026/hd-1q26-transcript.pdf) (Company's official transcript)
- [Document](https://ir.homedepot.com/~/media/Files/H/HomeDepot-IR/reports-and-presentations/quarterly-earnings/2026/q1-2026-earnings-reconciliation-of-non-gaap-measures.pdf) (Document)
- [Document](https://ir.homedepot.com/~/media/Files/H/HomeDepot-IR/reports-and-presentations/quarterly-earnings/2026/2026-q1-infographic.pdf) (Document)