Home Depot Reports Stronger Sales As Smaller Home Projects Offset Renovation Pullback

Home Depot has increasingly focused on expanding its professional business as consumers delay discretionary remodeling projects. Professional customers now account for roughly half of the company’s revenue. (Credit: Brandon Bell/Getty Images)

Home improvement retailer Home Depot reported stronger-than-expected quarterly sales as homeowners continued spending on repairs and smaller projects despite higher gas prices, stubborn mortgage rates and declining consumer confidence tied to ongoing geopolitical tensions.

The company posted fiscal first-quarter revenue of $41.77 billion, up nearly 5% from $39.86 billion a year earlier, while adjusted earnings came in at $3.43 per share. Analysts surveyed by LSEG had expected revenue of $41.52 billion and adjusted earnings of $3.41 per share. Net income fell to $3.29 billion, or $3.30 per share, from $3.43 billion, or $3.45 per share, a year earlier. The company reaffirmed its fiscal 2026 guidance, saying it still expects annual sales growth between 2.5% and 4.5%.