Home Depot Inc. Earnings Summary — Q1 2026

• Q1 2026 revenue grew by 4.79% year-over-year to $41.77 billion, showing resilience despite a high-interest-rate environment.
• Net income for the quarter was $3.29 billion, a 4.20% decrease compared to the $3.43 billion reported in Q1 2025.
• Operating income stabilized at $4.98 billion, though operating margins remained slightly compressed compared to the prior year's Q1 level.
• The company continues its strategic pivot toward the 'Pro' segment, evidenced by complex-project market investments.
• Cost of revenue rose 6.0% year-over-year to $27.98 billion, slightly outpacing revenue growth and impacting gross margins.
• Capital structure remains highly leveraged with a significant debt load, though supported by robust annual operating cash flows.

Management remains focused on omni-channel dominance and the expansion of the 'Pro' ecosystem, targeting the $450 billion Pro market to offset retail saturation.

Stable

Revenue returned to growth after a weak Q4 2025, but margin compression and a year-over-year decline in net income suggest continued macro headwinds.

The company faces sensitivity to mortgage rates and housing turnover, but long-term growth is expected to come from gains in the professional contractor segment and integrated distribution networks.