The Home Depot reported first quarter fiscal 2026 results for the period ending May 3, 2026, posting solid top-line growth and positive comparable sales while reaffirming its full-year guidance. Despite ongoing consumer uncertainty and housing affordability pressure, the company delivered results in line with expectations and signaled that the underlying demand environment remains stable.
Inside the Results
- Total sales: $41.8B, up 4.8% year over year
- Comparable sales: up 0.6% overall; up 0.4% in the U.S.
- Foreign exchange rates positively impacted total company comparable sales by approximately 55 basis points
- Net earnings: $3.3B, or $3.30 per diluted share vs. $3.45 per diluted share in Q1 FY2025
- Adjusted diluted EPS: $3.43 vs. $3.56 in the prior year period
- Comparable customer transactions: down 1.3%
- Comparable average ticket: up 2.2% to $92.76
- Online comp sales: up double digits year over year — fourth straight quarter of double-digit growth
- Power categories posted a Q1 record for sales
- Total store count: 2,361 retail stores plus over 1,280 SRS locations
What Drove the Quarter
CEO Ted Decker characterized the quarter as performing in line with expectations, noting that underlying demand patterns were consistent with what the company saw throughout fiscal 2025. Several themes shaped the results.
Online momentum continued to accelerate. Home Depot posted double-digit online comp sales growth for the fourth consecutive quarter. The digital channel is no longer a supplement to the in-store experience. It is a primary path to purchase for a growing share of both DIY and Pro customers.
Power categories hit a Q1 record. Home Depot’s strongest product categories, spanning tools, building materials and related segments, reached record Q1 sales levels, signaling that mission-driven project spending remains healthy even as broader discretionary demand stays measured.
Traffic softness persists, offset by ticket growth. Comparable transactions declined 1.3% while average ticket rose 2.2%, a continued pattern that reflects selective shoppers focused on specific projects rather than broad home improvement spending.
Mingledorff’s acquisition announced. Home Depot announced the acquisition of Mingledorff’s, an HVAC distributor, further expanding its Pro ecosystem alongside the existing SRS Distribution platform. This move deepens the retailer’s reach into the professional contractor supply chain.
Outlook and Implications for Suppliers and Brands
For home improvement brands and suppliers, the guidance reaffirmation, combined with Q1 performance trends, points to three clear imperatives heading reaffirmation – combined with the Q1 performance trends – points to three clear imperatives going into the back half of 2026.
- The digital shelf is now a primary revenue driver, not a support channel: Four straight quarters of double-digit online comp growth means that findability, content quality and conversion performance on product pages are directly tied to sales outcomes. Brands that have not recently audited their PDP content, refreshed imagery or tightened their copy should treat this as an urgent priority.
- Pro investment is structural, not cyclical: The Mingledorff’s acquisition follows SRS Distribution and signals that Home Depot’s Pro strategy is a long-term platform build, not a short-term tactic. Suppliers in categories that touch professional contractors – tools, fasteners, HVAC, building materials, electrical, plumbing – should be sharpening Pro-specific value propositions, bulk configurations and jobsite-ready messaging now.
- Win the ticket by solving the project: With transactions down and ticket up, shoppers are making fewer, more deliberate purchases. Brands that present clear project solutions – bundles, companion item suggestions and compatibility information – are better positioned to grow basket size even when traffic stays pressured.
Porchlight’s Perspective
At Porchlight, we read Home Depot’s Q1 results as a clear signal that stability and selectivity are the twin forces shaping this market. Sales are growing, guidance is intact and the digital channel is accelerating, but shoppers are making deliberate choices and brands that make those choices easier will win.
Additional Resources
The Home Depot’s Q1 2026 Earnings Report