ATLANTA, May 19, 2026, 07:03 (EDT)
Home Depot left its 2026 outlook unchanged on Tuesday. First-quarter revenue topped Wall Street views, but comparable sales came in below forecasts. The retailer is still seeing little benefit from the housing rebound. Shares edged up before the bell.
Home Depot’s numbers give an early sign of whether U.S. homeowners are spending as the retail earnings season ramps up. Lowe’s will report Wednesday. Target and Walmart follow later in the week, and both will show if shoppers are still handling higher prices or starting to cut back.
Home improvement sales aren’t getting a clear lift this spring. People need to buy repairs and supplies, but high borrowing costs and tough home affordability mean big remodeling plans are on hold. Home turnover is still slow, so the spring selling period is shaping up to be more of a slog than a bounce.
Home Depot reported a 4.8% rise in sales to $41.8 billion for the quarter ended May 3. Net earnings dropped to $3.3 billion, or $3.30 per share, compared to $3.4 billion, or $3.45 per share, from the year-ago period. Adjusted earnings slid to $3.43 a share from $3.56.
Comparable sales, which include stores and online channels open at least a year, rose 0.6%. U.S. comparable sales were up 0.4%. Bloomberg said the number came in a bit under what analysts had forecast. Reuters said total sales topped LSEG’s estimate of $41.52 billion.
Ted Decker, chair, president and CEO, said demand is “relatively similar to what we saw throughout fiscal 2025,” despite “greater consumer uncertainty and housing affordability pressure.” So the company is still in a holding pattern. The Home Depot
Customer mix was mixed. Transactions dropped 1.3%, but average ticket climbed to $92.76 from $90.71. Shoppers spent more per visit, but came in less. Home Depot saw support from pros and homeowners picking up spring items, according to AP.
Home Depot is focusing more on contractors and builders, or “Pro” customers, who usually spend more on bigger jobs than DIY shoppers. Reuters said the retailer has put money into new store tools and digital features for Pros. That includes an AI project-planning tool rolled out last year. Reuters
The downside story looks about the same. Existing-home sales posted little change in April, coming in at a 4.02 million annual pace. AP said the market has been sluggish since mortgage rates began climbing in 2022. If turnover stays slow, large spending areas like flooring, lumber and lighting could keep feeling the squeeze.
Home Depot is up against headwinds from higher interest rates and softer consumer confidence, Oppenheimer’s Brian Nagel said, according to Barron’s. Nagel flagged that sound execution might help margins. But that isn’t enough to kick off a new housing boom.
Home Depot is keeping its guidance for the year, still looking for total sales to grow between 2.5% and 4.5%, with comparable sales flat to up 2%. The company expects diluted EPS growth from flat to 4% for fiscal 2025 and says it’s on track to open around 15 new stores.
Wall Street isn’t seeing a clear signal from Home Depot. The retailer isn’t saying consumer demand is falling hard, but there’s no evidence yet of a broader pickup in housing-related spending. Lowe’s reports Wednesday and could show if this is just about Home Depot, or if the sector is seeing the same thing. Walmart, due later in the week, will give a wider read on the American consumer.
