Home Depot Q1 Profit Tops Estimates as Revenue Rises 4.8%

Home Depot reported first-quarter earnings that exceeded analyst expectations, though profits declined from the same period last year. The home improvement retailer posted adjusted earnings per share of $3.43 on Tuesday, May 19, surpassing the consensus estimate of $3.41. Revenue for the quarter reached $41.77 billion, a 4.8% year-over-year increase and above forecasts.

Net income for the quarter was $3.29 billion, a 4.2% decrease from the $3.43 billion reported a year ago. Comparable sales, a key retail metric, rose 0.6% overall, with U.S. comparable sales increasing 0.4%. The company noted that customer transactions fell by 1.3%, but the average ticket price rose 2.3% to $92.76.

Chief Executive Officer Ted Decker stated that consumer demand patterns were consistent with those seen throughout the previous fiscal year. He cited ongoing consumer uncertainty and housing affordability pressures as continuing challenges. Chief Financial Officer Richard McPhail elaborated that homeowners continue to defer spending on larger projects, a trend that has persisted for several years.

The company reaffirmed its full-year fiscal 2026 outlook, projecting total sales growth between 2.5% and...