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Home Depot Tops Q1 Estimates but Stock Drops to Two‑Year Low

The company beat revenue and adjusted EPS and kept full‑year targets while warning that homeowners are deferring large renovation work and pushing growth toward its professional contractor business.

Overview

  • Home Depot reported first‑quarter results on May 19 that beat expectations with revenue of about $41.77–41.8 billion and adjusted EPS of $3.43 while reaffirming its fiscal 2026 guidance.
  • Comparable‑store sales rose only modestly, with consolidated comps up 0.6% and U.S. comps up 0.4%, as transactions fell 1.3% and average ticket increased to $92.76.
  • Management said underlying demand was broadly similar to fiscal 2025 and CFO Richard McPhail said homeowners are postponing larger projects, which is weighing on big‑ticket renovation sales.
  • Shares briefly slipped below $290 to a two‑year low after the report and several analysts trimmed price targets, signaling investor concern about near‑term macro pressures despite the beat.
  • The company is pushing deeper into its professional‑contractor business through acquisitions such as SRS Distribution, GMS and Mingledorff's to offset weak homeowner renovation demand and seek growth in the roughly $700 billion pro market.