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Home Depot Q1 Preview Puts Modest Sales Gains Up Against Margin Squeeze

Margin pressure tied to recent deals with weak housing activity remains the key risk for investors.

Overview

  • Home Depot will release fiscal Q1 results before the opening bell, with Wall Street expecting $41.5 billion in revenue and EPS of $3.42.
  • Analysts see gross margin near 32.9% for the quarter, which would be about 90 basis points lower than a year ago.
  • Management has guided first‑half gross margins lower by roughly 50 basis points and expects EPS to be down mid‑single digits due to acquisition costs and expense timing.
  • Pro customer spending remains a relative bright spot, helped by the GMS deal, SRS expansion, trade credit, and AI tools for project planning and order tracking.
  • Options pricing points to roughly a 5% swing after the report, while the stock near $297 has fallen 22.6% in three months and the average analyst target sits at $412.26.