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Home Depot Fiscal First-Quarter Results Top Views; Maintains Full-Year Outlook

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Home Depot Fiscal First-Quarter Results Top Views; Maintains Full-Year Outlook

Home Depot (HD) on Tuesday reported fiscal first-quarter results above market expectations despite consumer uncertainty, while the home improvement retailer reiterated its full-year outlook.

The company's adjusted earnings came in at $3.43 per share for the three months through May 3, down from $3.56 the year before, but ahead of the FactSet-polled consensus of $3.41. Sales improved 4.8% to $41.77 billion, ahead of the Street's view for $41.59 billion.

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

For fiscal 2026, the retailer continues to anticipate adjusted EPS to be flat to up 4% versus last year's result of $14.69. The Street is looking for non-GAAP EPS of $15.01.

Sales are still pegged to grow by about 2.5% to 4.5% for the ongoing fiscal year. The company reaffirmed its comparable sales forecast range of flat to up 2%. The Street is looking for sales of $171.16 billion and same-store sales growth of 1.4% for the fiscal year.

Oppenheimer said Monday it expected Home Depot to lower its full-year guidance amid weak consumer sentiment.

For the first quarter, the retailer's comparable sales edged up 0.6% but fell short of analyst estimates for a 0.8% gain. The metric nudged 0.4% higher in the US. The number of transactions decreased 0.9% to 391.1 million, while the average ticket prices rose 2.3% to $92.76.

In an emailed client note on Tuesday, Truist Securities said Home Depot incurred "notable weather headwinds" in the quarter, but the brokerage's data suggested that sales improved throughout the period following a "tough early start."

Truist believes Home Depot's sales trends remain stable even though it has yet to see a "sharp positive inflection" in revenue amid high interest rates and broader macroeconomic uncertainties. "We continue to think the risk/reward is skewed significantly more to the upside," the brokerage added.

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