The retailer’s net earnings fell 4.2% to $3.28bn despite a 4.8% revenue increase to $41.76bn in the quarter.
Home Depot reported first-quarter fiscal 2026 net sales of $41.76bn, up 4.8% year-on-year, but net earnings declined 4.2% to $3.28bn. Rising costs outpaced revenue growth, with cost of sales increasing 6% to $27.98bn, compressing gross profit to $13.78bn, a 2.4% rise.
Operating income dropped 3% to $4.98bn, while diluted earnings per share fell 4.3% to $3.30. Adjusted EPS stood at $3.43, down from $3.56 a year earlier. Comparable sales grew just 0.6%, with US comparable sales up 0.4%.
The company maintained its full-year outlook, projecting sales growth of 2.5% to 4.5% and flat to 2% comparable sales growth. Earnings per share are expected to rise 0% to 4% from base figures.