Home Depot’s first quarter results for 2026 met Wall Street’s revenue expectations and delivered a modest adjusted earnings per share beat, with market reaction remaining largely unchanged. Management attributed the quarter’s performance to continued growth in its Pro segment, ongoing investments in digital platforms, and positive engagement in spring-related categories, despite persistent caution among consumers regarding larger discretionary projects. CEO Ted Decker emphasized that, while underlying demand remained steady, “the large cross-category project is muted,” reflecting consumer uncertainty and housing affordability pressures. The company’s acquisition of Mingledorff’s, a regional HVAC distributor, was highlighted as a strategic move to deepen its presence in the professional market.
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Home Depot (HD) Q1 CY2026 Highlights:
- Revenue: $41.77 billion vs analyst estimates of $41.63 billion (4.8% year-on-year growth, in line)
- Adjusted EPS: $3.43 vs analyst estimates of $3.41 (0.7% beat)
- Adjusted EBITDA: $5.82 billion vs analyst estimates of $5.90 billion (13.9% margin, 1.4% miss)
- Operating Margin: 11.9%, in line with the same quarter last year
- Locations: 2,361 at quarter end, up from 2,350 in the same quarter last year
- Same-Store Sales were flat year on year, in line with the same quarter last year
- Market Capitalization: $311.8 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Home Depot’s Q1 Earnings Call
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Scot Ciccarelli (Truist): Asked about the share of sales tied to large-scale projects and how much this segment’s softness is impacting overall results. CEO Ted Decker said the company tracks sales by ticket size and department breadth but does not disclose the exact proportion, noting that large cross-category projects remain muted.
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Seth Sigman (Barclays): Questioned the drivers behind guidance for comp improvement throughout the year and the progress of Pro initiatives. Decker responded that higher second-half comps will be driven by normalized store activity, while progress in the Pro business is measured by increased share and engagement in complex projects.
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Christopher Horvers (JPMorgan): Inquired about weather impacts on sales cadence and the effect of higher interest rates and consumer uncertainty on project demand. EVP Billy Bastek said spring-related categories performed well despite weather variance; Decker and CFO Richard McPhail emphasized the resilience of Home Depot’s core customer but acknowledged ongoing uncertainty.
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Zachary Fadem (Wells Fargo): Sought detail on SRS performance and gross margin impacts from acquisitions and tariffs. McPhail explained that most of the margin decline was due to the GMS acquisition, while SRS took share despite a weak roofing market and expects improvement as the year progresses.
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Charles Grom (Gordon Haskett): Asked about the rollout of merchandise execution teams and the adoption of Pro Trade Credit. EVP Ann-Marie Campbell highlighted improved customer engagement and higher likelihood-to-shop-again scores from the team structure, while management reported strong traction with Pro Trade Credit, especially among builders and remodelers.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace of cross-selling and integration across Home Depot’s specialty distribution platforms, (2) evidence of margin stabilization as the company manages cost inflation and tariff impacts, and (3) continued growth in digital sales and engagement, especially among Pro customers. Progress in these areas will indicate how well Home Depot is executing its multi-channel and Pro-focused strategy amid a challenging macroeconomic environment.
Home Depot currently trades at $312.94, up from $299.81 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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