Total Sales Growth
First-quarter sales totaled $41.8 billion, up 4.8% year-over-year (+$1.9 billion).
Home Depot
· HD
May 19th, 2026
Summary
- Earnings Call Date:
- 2026-05-19
- Change Since:
- +14.93%
- Next Earnings Date:
- 2026-08-18
Earnings Call Sentiment
NeutralThe call presented a balanced view: solid top-line growth (sales +4.8%), strong digital momentum (online comps >10%), Pro outperformance, and strategic expansion through acquisitions (Mingledorff's) and fulfillment improvements. Those positives were offset by profit pressure — lower gross and operating margins, EPS decline (adjusted EPS down ~3.7%), higher inventories, and a drop in ROIC. Management reaffirmed FY26 guidance and emphasized execution and market-share opportunities, but flagged macro and cost uncertainties (weather variability, fuel, tariffs, rates).
Company Guidance
Home Depot reaffirmed fiscal 2026 guidance: comp sales flat to +2% and total sales growth of about 2.5%–4.5% (reflecting GMS, new stores/branches and tuck‑ins); SRS mid‑single‑digit organic sales growth; gross margin ~33.1%; operating margin ~12.4%–12.6% (adjusted operating margin ~12.8%–13.0%); effective tax rate ~24.3%; net interest expense ~$2.3 billion; diluted EPS and adjusted diluted EPS both expected to be roughly flat to +4% versus fiscal 2025; capital expenditures ~2.5% of sales; and plans to open ~15 new Home Depot stores and 40–50 new SRS locations.
Digital Strength
Total company online comp sales grew over 10% year-over-year — fourth consecutive quarter of double-digit digital growth.
Comparable Sales Positive
Total company comp sales increased 0.6% (U.S. comps +0.4%) with sequential monthly cadence: +0.7% in February, +2.0% in March, -0.5% in April.
Pro Momentum and Product Performance
Pro posted positive comps and outperformed DIY; 9 of 16 merchandising departments posted positive comps. Comp average ticket rose +2.2%, and big-ticket transactions (>$1,000) were +0.8%.
Acquisition and SRS Scale Expansion
Completed acquisition of Mingledorff's (42 locations) to expand HVAC distribution; SRS platform now contributes to an expanded addressable market (~$1.2 trillion) and enterprise fleet ~16,000 delivery assets with ~5,000 professional sales associates.
Fulfillment and Service Improvements
Ship-from-best-location and operations changes reduced cancellations, improved fulfillment time and delivered record-high delivery customer satisfaction and on-time & complete performance; transitioned MET tasking in over 1,000 stores.
Capital Allocation and Guidance Reaffirmed
Invested $845 million in capex for the quarter, paid $2.3 billion in dividends, and reaffirmed FY26 guidance: comp sales flat to +2%, total sales +2.5% to +4.5%, gross margin ~33.1%, adjusted operating margin ~12.8%–13%, and adjusted diluted EPS flat to +4% vs FY25.
Operator
Greetings, and welcome to The Home Depot First Quarter 2026 Earnings Call. [Operator Instructions] A reminder, this conference is being recorded. It is now my pleasure to introduce your host, Isabel Janci. Please go ahead.
Isabel Janci
Thank you, Christine, and good morning, everyone. Welcome to Home Depot's First Quarter 2026 Earnings Call. Joining us on our call today are Ted Decker, Chair, President and CEO; Ann-Marie Campbell, Senior Executive Vice President; Billy Bastek, Executive Vice President of Merchandising; and Richard McPhail, Executive Vice President and Chief Financial Officer. Following our prepared remarks, the call will be open for questions. Questions will be limited to analysts and investors. And as a reminder, please limit yourself to one question with one follow-up. If we were unable to get to your question during the call, please call Investor Relations at (770) 384-2387. Before I turn the call over to Ted, let me remind you that today's press release and the presentations made by our executives include forward-looking statements under the federal securities laws including as defined in the Private Securities Litigation Reform Act of 1995.
These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. These risks and uncertainties include, but are not limited to the factors identified in the release in our most recent annual report on Form 10-K and in our other filings with the Securities and Exchange Commission. Today's presentation will also include certain non-GAAP measures, in...
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