Home Depot (NYSE:HD) Posts Quarterly Earnings Results

Home Depot (NYSE:HD) issued its earnings results on Tuesday. The home improvement retailer reported $3.43 EPS for the quarter, beating the consensus estimate of $3.41 by $0.02, FiscalAI reports. The company had revenue of $41.77 billion during the quarter, compared to analysts’ expectations of $41.59 billion. Home Depot had a net margin of 8.41% and a return on equity of 117.24%. The business’s revenue for the quarter was up 4.8% compared to the same quarter last year. During the same quarter in the previous year, the company posted $3.56 EPS. Home Depot updated its FY 2026 guidance to 14.690-15.278 EPS.

Here are the key takeaways from Home Depot’s conference call:

• Home Depot reported first-quarter sales of $41.8 billion, up 4.8%, with comparable sales up 0.6% and adjusted EPS of $3.43, all broadly in line with expectations.
• Management said the business remained resilient despite housing affordability pressure, and noted that pro customers continued to outperform DIY, with strength in several categories and record online growth for the fourth straight quarter.
• The company highlighted continued progress in its Pro strategy, including stronger adoption of Pro Trade Credit, improved digital tools, and growing cross-sell opportunities across Home Depot, SRS, GMS, and other platforms.
• Home Depot reiterated that it is not expecting a major improvement in underlying demand, and said the implied second-half comp improvement is mainly tied to a return to normal storm activity rather than a broad demand rebound.
• Gross margin and adjusted EPS were pressured by the GMS acquisition mix, pricing investments at SRS, and ongoing cost uncertainty from fuel and tariffs, though the company said core margins were otherwise stable and reaffirmed full-year guidance.

Home Depot Trading Up 2.7%

Home Depot stock opened at $310.66 on Thursday. The firm has a 50-day moving average of $328.56 and a 200-day moving average of $352.55. Home Depot has a one year low of $289.10 and a one year high of $426.75. The company has a debt-to-equity ratio of 3.23, a current ratio of 1.04 and a quick ratio of 0.26. The company has a market cap of $309.42 billion, a price-to-earnings ratio of 22.06, a P/E/G ratio of 3.49 and a beta of 1.00.

Home Depot Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Stockholders of record on Thursday, March 12th were paid a dividend of $2.33 per share. The ex-dividend date was Thursday, March 12th. This represents a $9.32 dividend on an annualized basis and a dividend yield of 3.0%. This is a positive change from Home Depot’s previous quarterly dividend of $2.30. Home Depot’s dividend payout ratio (DPR) is currently 65.50%.

Analyst Upgrades and Downgrades

Several brokerages have commented on HD. Bank of America began coverage on shares of Home Depot in a research report on Tuesday, May 5th. They set a “buy” rating and a $374.00 target price for the company. Evercore dropped their target price on shares of Home Depot from $415.00 to $400.00 and set an “outperform” rating for the company in a research report on Wednesday. Telsey Advisory Group dropped their target price on shares of Home Depot from $435.00 to $410.00 and set an “outperform” rating for the company in a research report on Wednesday. Daiwa Securities Group upped their target price on shares of Home Depot from $360.00 to $390.00 and gave the company a “neutral” rating in a research report on Thursday, February 26th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Home Depot in a research report on Friday, March 27th. Twenty analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $372.29.

Key Headlines Impacting Home Depot

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Home Depot reported Q1 fiscal 2026 earnings and revenue above Wall Street estimates, with sales rising 4.8% year over year to $41.8 billion and comparable sales also turning positive. The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance
• Positive Sentiment: The company said demand from professional contractors remained solid, and management pointed to digital gains and distribution expansion as offsets to weakness in large renovation projects. HD Q1 Earnings Call Highlights Pro Push, Steady Outlook
• Positive Sentiment: Despite the softer housing backdrop, Home Depot reaffirmed its fiscal 2026 outlook, which reassured investors that management still expects stable performance rather than a sharp slowdown. HD Q1 Earnings Call Highlights Pro Push, Steady Outlook
• Neutral Sentiment: Several analysts cut price targets after the report, but most kept bullish or neutral ratings, suggesting expectations were reset rather than turning outright negative. These Analysts Cut Their Forecasts On Home Depot After Q1 Results
• Negative Sentiment: Profit fell year over year as cost growth outpaced revenue, highlighting margin pressure and a still-challenged consumer spending environment. Home Depot Q1 profit falls as cost growth outpaces revenue
• Negative Sentiment: Wall Street also flagged risks to 2026 guidance from weak housing turnover, affordability pressure, and delayed big-home-improvement projects, which could limit upside from here. Home Depot Faces Risk of Missing 2026 Guidance on Cost, Demand Outlook Headwinds, RBC Says

Insider Activity at Home Depot

In other news, CFO Richard V. Mcphail sold 2,550 shares of the stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $368.89, for a total transaction of $940,669.50. Following the completion of the transaction, the chief financial officer directly owned 44,566 shares in the company, valued at $16,439,951.74. This represents a 5.41% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.08% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Home Depot

A number of large investors have recently modified their holdings of the business. State Street Corp boosted its stake in shares of Home Depot by 1.8% during the 4th quarter. State Street Corp now owns 46,925,342 shares of the home improvement retailer’s stock worth $16,147,010,000 after buying an additional 825,164 shares during the last quarter. Bank of America Corp DE lifted its stake in Home Depot by 5.6% in the 4th quarter. Bank of America Corp DE now owns 16,063,532 shares of the home improvement retailer’s stock valued at $5,527,461,000 after purchasing an additional 851,029 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its stake in Home Depot by 7.8% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 15,471,132 shares of the home improvement retailer’s stock valued at $5,323,620,000 after purchasing an additional 1,113,114 shares during the last quarter. Wellington Management Group LLP lifted its stake in Home Depot by 5.7% in the 4th quarter. Wellington Management Group LLP now owns 10,721,582 shares of the home improvement retailer’s stock valued at $3,689,296,000 after purchasing an additional 578,493 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its stake in Home Depot by 2.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 10,616,042 shares of the home improvement retailer’s stock valued at $3,652,981,000 after purchasing an additional 213,060 shares during the last quarter. 70.86% of the stock is currently owned by institutional investors and hedge funds.

About Home Depot

The Home Depot, Inc (NYSE: HD) is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot’s core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.