Home Depot tops expectations as professionals boost first-quarter sales

Contractors kept spending, but many do-it-yourself homeowners stayed cautious, giving Home Depot a split-screen view of the U.S. consumer. The home-improvement giant said professional demand helped lift first-quarter fiscal 2026 sales, while households bought spring supplies and routine maintenance items but continued to put off bigger renovation jobs as borrowing costs and uncertainty weighed on plans.

The Home Depot reported sales of $41.8 billion for the quarter ended May 3, 2026, up 4.8% from a year earlier. Comparable sales rose 0.6% overall and 0.4% in the United States, with foreign exchange adding about 55 basis points to the companywide measure. Net earnings came to $3.3 billion, or $3.30 per diluted share, compared with $3.4 billion, or $3.45 a share, a year earlier. Adjusted diluted earnings per share were $3.43, down from $3.56 last year, but still ahead of analysts’ expectations.

Chief executive Ted Decker said the quarter was “in line with our expectations” and said underlying demand looked similar to fiscal 2025 even as consumer uncertainty rose and housing affordability remained under pressure. Chief financial officer Richard McPhail said homeowners remained engaged, but many were still deferring larger projects amid higher gas prices, falling consumer confidence, geopolitical tensions and a weak housing backdrop.

That divergence matters for the broader economy. Big-ticket home projects often track confidence, financing conditions and turnover in the housing market, while smaller purchases such as paint, garden supplies and repair materials can hold up even when households are more cautious. Home Depot’s results suggested that pattern was still in place: steady spending from professionals and essential maintenance demand offset a slower pace for discretionary remodeling.

The company reaffirmed its fiscal 2026 outlook, calling for total sales growth of roughly 2.5% to 4.5%, comparable sales growth of flat to 2.0% and adjusted diluted earnings growth of flat to 4.0%. It also said it expected to open about 15 new stores in fiscal 2026. For investors watching whether high rates are still freezing housing-related spending, Home Depot’s latest quarter offered a clear answer: the pressure remains, but it has not shut the market down.