The Home Depot, Inc. · HD · FY2026 Q1 · Calendar Q2 2026

Home Depot Q1 FY2026: Sales Beat as Pro Segment and HVAC Expansion Drive Growth

Home Depot's first quarter showed accelerating growth and a confident management tone. Revenue of $41.8 billion grew 4.8% year-over-year with comps up 0.6%, edging past consensus on both EPS and revenue. The completed Mingledorff's acquisition adds HVAC parts distribution as a new growth vector, expanding the company's addressable market to $1.2 trillion. Management reaffirmed FY2026 guidance and disclosed a $400 million cross-sell run-rate target across SRS, GMS, and HD Supply, signaling that the Pro-focused ecosystem strategy is gaining traction. The stock responded with a 1.5% abnormal return on the report day and 8.3% subsequent drift higher, though comp growth remains modest and macro headwinds persist.

Reported Before market openNYSEConsumer Cyclical $335.12B market cap
100quality score

Company context

Snapshot as of publication

The Home Depot, Inc. operates as a prominent retailer specializing in home renovation and improvement. Through its expansive network of "The Home Depot" stores, it furnishes consumers with an extensive array of goods, including building materials, home enhancement products, lawn and garden supplies, decorative items, and facilities maintenance, repair, and operational (MRO) supplies. In addition to selling products, the company extends professional installation services for key home features like flooring, cabinetry (including makeovers), countertops, furnaces and central air conditioning systems, and window replacements. Customers can also access tool and equipment rental options.…

Earnings scorecard

Reported versus consensus
Reported EPS $3.43 Consensus $3
EPS surprise +0.6% Reported versus consensus
Reported revenue $41.77B Consensus $41.59B
Revenue surprise +0.4% Reported versus consensus

Market reaction

prior-close to event-session close
Stock move +0.9% Event window
SPY move -0.7% Same window
Abnormal move +1.5% Stock minus SPY
Volume 1.9× Versus trailing sessions
Subsequent drift +8.3% Up to 20 sessions
HDSPY benchmark

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Transcript intelligence

What changed

Management tone shifted from cautious in Q4 FY2025 to confident in Q1 FY2026. Revenue growth accelerated from 3.2% full-year FY2025 to 4.8% in Q1. Gross margin improved from 32.6% in Q4 to approximately 33.1% in Q1, though still reflecting GMS integration impact. The Mingledorff's HVAC distribution acquisition closed during the quarter, adding a new platform beyond traditional big-box retail. A $400 million cross-sell run-rate target across SRS, GMS, and HD Supply was disclosed for the first time. The exclusive Ram Board floor protection product was introduced to the big-box channel.

Guidance delta

FY2026 guidance was reaffirmed at 2.5%-4.5% total sales growth, flat-to-2% comparable sales, gross margin of approximately 33.1%, and operating margin of 12.4%-12.6%. This is unchanged from the initial FY2026 outlook issued with Q4 FY2025 results.

Key takeaways

  • Q1 sales grew 4.8% to $41.8B, beating consensus on both revenue and adjusted EPS ($3.43 vs. $3.41 estimate).
  • Mingledorff's HVAC distribution acquisition completed, expanding the addressable market to $1.2 trillion.
  • Pro segment outperformed DIY, supported by digital tools, trade credit expansion, and broader product assortment.
  • FY2026 guidance reaffirmed: 2.5%-4.5% sales growth, operating margin 12.4%-12.6%, gross margin approximately 33.1%.
  • Cross-sell run-rate target of $400M across SRS, GMS, and HD Supply disclosed for the first time.

Management priorities

  • Complete MET (Merchandise Execution Team) rollout to all stores by end of FY2026.
  • Scale the Pro Digital Workspace and AI-enabled material list builder.
  • Expand Trade Credit program to additional Pro segments in Q2.
  • Pursue modest additional HVAC acquisitions to broaden geographic coverage.
  • Open approximately 15 new Home Depot stores and 40-50 new SRS locations with capex at approximately 2.5% of sales.

Related earnings events

Consumer Cyclical
TSLA · FY2026 Q2 · Calendar Q3 2026Tesla Q2 2026: Revenue Beats but EPS Misses 34% as Heavy Capex and Margin Pressure Weigh

Sources

  1. Earnings call transcript and parsed analysis · 2026-05-19T17:21:30.375568+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-07-28T09:43:38.676007+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-28T09:43:38.672902+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated . For educational purposes only; not investment advice.