The retailer’s first-quarter sales beat expectations despite a 10% year-to-date stock decline amid macroeconomic pressures.
Home Depot reported first-quarter revenue of $41.8 billion, up 5% year over year and above the $41.5 billion analysts forecast. Comparable store sales rose 0.6%, while net earnings fell to $3.3 billion, or $3.30 per share, from $3.4 billion a year earlier.
Adjusted earnings of $3.43 per share declined 4% but exceeded expectations. The company reaffirmed its 2026 guidance, targeting 2.5% to 4.5% sales growth and a 12.4% to 12.6% operating margin, up from 11.9% in Q1.
CEO Ted Decker noted steady underlying demand despite consumer uncertainty and housing affordability challenges. Wall Street analysts maintained bullish ratings despite lowering price targets.