Home Depot tops estimates as demand remains stable

Investing.com -- Home Depot Inc. (NYSE: HD) reported first-quarter results that exceeded analyst expectations, sending shares around 1% premarket following the announcement.

The home improvement retailer posted adjusted earnings per share of $3.43, beating the analyst estimate of $3.41 by $0.02. Revenue reached $41.77 billion, surpassing the consensus estimate of $41.51 billion and marking a 4.8% increase from $39.86 billion in the same quarter last year. Comparable sales rose 0.6% for the quarter, with U.S. comparable sales up 0.4%.

"Our first quarter results were in line with our expectations. The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure," said Ted Decker, chair, president and CEO.

For fiscal 2026, Home Depot reaffirmed its guidance, projecting total sales growth of approximately 2.5% to 4.5% and comparable sales growth of approximately flat to 2%. The midpoint of the comparable sales guidance of 1% falls below the analyst consensus of 1.55%. The company also maintained its adjusted EPS growth outlook of approximately flat to 4% from $14.69 in fiscal 2025, which at the midpoint of 2% growth would translate to roughly $14.98.

The company reported an adjusted operating margin of 12.3% for the quarter, down from 13.2% in the prior year period. Net earnings declined to $3.3 billion, or $3.30 per diluted share, compared with $3.4 billion, or $3.45 per diluted share, in the first quarter of fiscal 2025.

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