Home Depot beat Wall Street expectations in its first quarter despite a slight year-over-year decline in profit. For the period ending May 3, 2026, the company earned $3.29 billion, or $3.30 per share, down from $3.43 billion the same quarter last year. On an adjusted basis, earnings came in at $3.43 per share, surpassing analysts' forecast of $3.41. Revenue reached $41.77 billion, up from $39.86 billion, exceeding projected $41.59 billion. Comparable store sales rose 0.6% overall, with a 0.4% increase in the U.S., driven by higher spending per transaction—up to $92.76 from $90.71—even as customer visits declined by 1.3%.

CEO Ted Decker noted that underlying demand remained stable despite consumer uncertainty and housing affordability challenges. The U.S. housing market has been stagnant since 2022, when rising mortgage rates began cooling homebuying activity. Existing home sales were flat year-over-year in April 2026, moving at a seasonally adjusted annual rate of 4.02 million units. Inflation, particularly in gasoline prices—up over 28% from the previous year—has further constrained household spending.

Analysts credit Home Depot’s strategic shift toward professional contractors, a more resilient customer segment, for its relative strength. However, GlobalData’s Neil Saunders emphasized the need to maintain consumer engagement through incremental improvements. The company maintains its fiscal 2026 outlook, projecting total sales growth of 2.5% to 4.5% and comparable sales flat to up 2%. Shares rose modestly in premarket trading following the announcement.