Home Depot posts steady first-quarter sales growth, reaffirms 2026 outlook
Home Depot kept sales growing in a tough quarter, but fewer customer trips and softer profit metrics put the focus back on store execution.
Home Depot kept first-quarter sales moving in the right direction, posting $41.8 billion in revenue for fiscal 2026, up 4.8% from a year earlier, while comparable sales rose 0.6% and U.S. comparable sales rose 0.4%. Net earnings came in at $3.3 billion, or $3.30 per diluted share, and adjusted earnings per share were $3.43. Ted Decker said underlying demand looked broadly similar to fiscal 2025 even as consumer uncertainty and housing affordability pressure stayed in the background, and the company reaffirmed its full-year outlook for sales growth of about 2.5% to 4.5% with comparable sales roughly flat to up 2%.
For associates and store leaders, the message from the quarter is that the floor still does the heavy lifting. Comparable customer transactions fell 1.3%, but the average ticket rose 2.2% to $92.76, and big-ticket transactions over $1,000 increased 0.8% from a year earlier. That points to shoppers making fewer trips but spending a little more when they do come in. It also means clean execution matters: shelves have to be full, pro orders have to move correctly, and customer service has to make each visit count when traffic is uneven.
The company said foreign exchange rates added about 55 basis points to total company comparable sales. It also said online sales grew more than 10% for the fourth consecutive quarter of double-digit growth, extending a run that keeps pressure on stores to support omnichannel demand without letting the sales floor slip. Management highlighted strong results from the annual Spring Black Friday and Spring Gift Center events, especially in power tools, outdoor power equipment, live goods and patio, while noting that larger discretionary projects remained under pressure. Decker said the Pro business outperformed DIY, with complex purchase occasions among the strongest categories.
The quarter also fits a longer arc. At a December 9, 2025 investor and analyst conference in Atlanta, Home Depot laid out a preliminary fiscal 2026 outlook and a market recovery case, signaling that leadership was planning for a gradual improvement rather than a sharp rebound. For fiscal 2025, sales reached $164.7 billion, up 3.2% from fiscal 2024, while comparable sales rose 0.3% companywide and 0.5% in the U.S. Adjusted EPS for fiscal 2025 fell 3.6% to $14.69.
Home Depot said it expects capital expenditures of about 2.5% of sales in fiscal 2026, a sign that it intends to keep investing in stores, supply chain and Pro capabilities while the housing and renovation backdrop stays sluggish. For associates, the quarter says demand is there, but converting it efficiently is still the difference between a steady year and a soft one.
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