ATLANTA – The Home Depot reported its first quarter fiscal 2026 financial results today, showcasing a notable increase in sales despite prevailing consumer uncertainty and housing affordability pressures. The home improvement giant announced total sales of $41.8 billion for the quarter, marking a $1.9 billion, or 4.8%, increase compared to the first quarter of fiscal 2025.
First Quarter Performance Amidst Economic Headwinds
Comparable sales for the first quarter of fiscal 2026 saw a modest increase of 0.6% overall, with U.S. comparable sales rising by 0.4%. Foreign exchange rates provided a slight tailwind, positively impacting total company comparable sales by approximately 55 basis points. However, net earnings for the quarter were $3.3 billion, or $3.30 per diluted share, a slight decrease from the $3.4 billion, or $3.45 per diluted share, reported in the same period of fiscal 2025. Adjusted diluted earnings per share also saw a minor decline, coming in at $3.43 compared to $3.56 in the prior year's first quarter.
Ted Decker, chair, president, and CEO of The Home Depot, commented on the results, stating, "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." He further extended gratitude to the company's associates for their customer service and dedication.
Reaffirming Fiscal 2026 Outlook
Looking ahead, The Home Depot reaffirmed its fiscal 2026 guidance. The company anticipates total sales growth to be in the range of approximately 2.5% to 4.5%. Comparable sales growth is projected to be approximately flat to 2.0%. The company also plans to open approximately 15 new stores during the fiscal year. The guidance includes a projected gross margin of approximately 33.1% and an operating margin between 12.4% to 12.6%. The adjusted operating margin is expected to be between 12.8% to 13.0%. The effective tax rate is estimated at approximately 24.3%, with net interest expense projected at around $2.3 billion. Diluted earnings per share are expected to grow approximately flat to 4.0% from the $14.23 reported in fiscal 2025, with adjusted diluted earnings per share also projected to grow between flat to 4.0% from $14.69 in fiscal 2025.
The company's performance comes at a time when overall corporate earnings for S&P 500 companies have shown robust growth in the first quarter of 2026, with earnings growth rates nearly doubling from the previous quarter. However, inflation, driven partly by energy costs, and resilient retail sales indicate a complex economic landscape. The Home Depot's reaffirmation of its guidance suggests a degree of stability and strategic confidence in navigating these market dynamics.