Home Depot Inc. (NYSE:HD) reported first-quarter earnings and revenue ahead of Wall Street expectations, helping lift the company’s shares about 1% in premarket trading on Tuesday.
The home improvement retailer posted adjusted earnings of $3.43 per share, topping analyst forecasts of $3.41 per share. Quarterly revenue came in at $41.77 billion, above the consensus estimate of $41.51 billion and up 4.8% from the $39.86 billion reported in the same period a year earlier.
Comparable sales increased 0.6% during the quarter, while comparable sales in the United States rose 0.4%.
“Our first quarter results were in line with our expectations. The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure,” said Ted Decker, chair, president and CEO.
For fiscal 2026, Home Depot reiterated its outlook, expecting total sales growth of approximately 2.5% to 4.5% and comparable sales growth ranging from flat to around 2%.
The midpoint of the company’s comparable sales guidance, at roughly 1%, remains below analyst expectations of 1.55%.
Home Depot also maintained its forecast for adjusted earnings per share growth of approximately flat to 4% compared with fiscal 2025 adjusted EPS of $14.69. Based on the midpoint of the guidance range, that would imply adjusted EPS of about $14.98.
The retailer reported an adjusted operating margin of 12.3% in the quarter, down from 13.2% in the same period last year.
Net earnings totaled $3.3 billion, or $3.30 per diluted share, compared with $3.4 billion, or $3.45 per diluted share, in the first quarter of fiscal 2025.