Home Depot reported first-quarter fiscal 2026 sales of $41.8 billion, up 4.8% from the same period last year, but comparable sales growth slowed to just 0.6%, with domestic comparable sales rising only 0.4%.
Earnings per share declined to $3.30 from $3.45 in the prior year quarter, while adjusted earnings fell to $3.43 from $3.56. The results reflect margin pressure despite higher absolute revenue.
"Consumer demand remained relatively similar to what we experienced throughout the previous fiscal year," said Chief Executive Ted Decker in a statement. He cited the company's employees for delivering excellent customer service.
Decker acknowledged "greater consumer uncertainty and housing affordability pressure" as headwinds affecting the market. The challenging housing environment has squeezed demand as potential homebuyers face elevated mortgage rates and home prices, reducing spending on home improvement projects.
Home Depot operates 2,361 retail stores and more than 1,280 SRS locations across North America and beyond, employing more than 470,000 associates. The company is a component of both the Dow Jones Industrial Average and the S&P 500.
Home Depot reaffirmed its fiscal 2026 guidance. The company said it continues to focus on store operations, supply chain optimization, technology and innovation.
In its forward-looking statements, the company cited risks including tariffs, geopolitical tensions, labor costs, supply chain disruptions and changing consumer preferences.
