Home Depot (NYSE:HD) Issues Earnings Results, Beats Expectations By $0.02 EPS

Home Depot (NYSE:HD) announced its quarterly earnings results on Tuesday. The home improvement retailer reported $3.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.41 by $0.02, FiscalAI reports. Home Depot had a net margin of 8.60% and a return on equity of 134.32%. The firm had revenue of $41.77 billion for the quarter, compared to the consensus estimate of $41.59 billion. During the same period in the prior year, the firm posted $3.56 earnings per share. The firm’s quarterly revenue was up 4.8% compared to the same quarter last year. Home Depot updated its FY 2026 guidance to 14.690-15.278 EPS.

Here are the key takeaways from Home Depot’s conference call:

• Home Depot reported first-quarter sales of $41.8 billion, up 4.8%, with comparable sales up 0.6% and adjusted EPS of $3.43, all broadly in line with expectations.
• Management said the business remained resilient despite housing affordability pressure, and noted that pro customers continued to outperform DIY, with strength in several categories and record online growth for the fourth straight quarter.
• The company highlighted continued progress in its Pro strategy, including stronger adoption of Pro Trade Credit, improved digital tools, and growing cross-sell opportunities across Home Depot, SRS, GMS, and other platforms.
• Home Depot reiterated that it is not expecting a major improvement in underlying demand, and said the implied second-half comp improvement is mainly tied to a return to normal storm activity rather than a broad demand rebound.
• Gross margin and adjusted EPS were pressured by the GMS acquisition mix, pricing investments at SRS, and ongoing cost uncertainty from fuel and tariffs, though the company said core margins were otherwise stable and reaffirmed full-year guidance.

Home Depot Stock Performance

NYSE:HD opened at $302.23 on Wednesday. The company has a debt-to-equity ratio of 3.62, a quick ratio of 0.26 and a current ratio of 1.06. The company has a fifty day moving average of $329.41 and a two-hundred day moving average of $353.04. The stock has a market capitalization of $301.03 billion, a PE ratio of 21.24, a P/E/G ratio of 3.46 and a beta of 1.00. Home Depot has a fifty-two week low of $289.10 and a fifty-two week high of $426.75.

Home Depot Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 26th. Shareholders of record on Thursday, March 12th were given a dividend of $2.33 per share. This is a boost from Home Depot’s previous quarterly dividend of $2.30. This represents a $9.32 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date was Thursday, March 12th. Home Depot’s dividend payout ratio (DPR) is currently 65.50%.

Trending Headlines about Home Depot

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Home Depot beat first-quarter expectations, posting EPS of $3.43 on revenue of $41.77 billion, while revenue rose 4.8% year over year and comparable sales increased 0.6%. Reuters article
• Positive Sentiment: The company reaffirmed full-year fiscal 2026 guidance, easing investor concerns that macro weakness would force a cut to its outlook. PR Newswire article
• Positive Sentiment: Management said Pro customer demand, digital growth, and distribution expansion are helping offset softness in larger home-improvement projects. Zacks article

Insiders Place Their Bets

In other Home Depot news, CFO Richard V. Mcphail sold 2,550 shares of the company’s stock in a transaction on Wednesday, March 4th. The shares were sold at an average price of $368.89, for a total transaction of $940,669.50. Following the completion of the transaction, the chief financial officer directly owned 44,566 shares in the company, valued at approximately $16,439,951.74. This represents a 5.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 0.08% of the company’s stock.

Hedge Funds Weigh In On Home Depot

A number of large investors have recently added to or reduced their stakes in the stock. Mill Capital Management LLC raised its position in Home Depot by 0.4% during the fourth quarter. Mill Capital Management LLC now owns 7,377 shares of the home improvement retailer’s stock worth $2,538,000 after acquiring an additional 27 shares during the period. Jacobi Capital Management LLC raised its position in shares of Home Depot by 0.3% in the fourth quarter. Jacobi Capital Management LLC now owns 9,336 shares of the home improvement retailer’s stock valued at $3,213,000 after buying an additional 27 shares during the last quarter. Nvest Financial LLC raised its position in shares of Home Depot by 4.8% in the fourth quarter. Nvest Financial LLC now owns 610 shares of the home improvement retailer’s stock valued at $210,000 after buying an additional 28 shares during the last quarter. WealthCollab LLC raised its position in shares of Home Depot by 4.1% in the second quarter. WealthCollab LLC now owns 730 shares of the home improvement retailer’s stock valued at $268,000 after buying an additional 29 shares during the last quarter. Finally, Puff Wealth Management LLC raised its position in shares of Home Depot by 3.8% in the second quarter. Puff Wealth Management LLC now owns 821 shares of the home improvement retailer’s stock valued at $301,000 after buying an additional 30 shares during the last quarter. 70.86% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

HD has been the topic of a number of recent analyst reports. The Goldman Sachs Group lowered their price target on shares of Home Depot from $413.00 to $409.00 in a report on Wednesday, February 25th. Piper Sandler lowered their price target on shares of Home Depot from $422.00 to $421.00 and set an “overweight” rating on the stock in a report on Friday. Weiss Ratings reissued a “hold (c+)” rating on shares of Home Depot in a report on Friday, March 27th. Sanford C. Bernstein lowered their price target on shares of Home Depot from $390.00 to $365.00 and set a “market perform” rating on the stock in a report on Thursday, May 14th. Finally, Stifel Nicolaus lowered their price target on shares of Home Depot from $375.00 to $320.00 and set a “hold” rating on the stock in a report on Monday. Twenty research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $392.45.

Home Depot Company Profile

The Home Depot, Inc (NYSE: HD) is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot’s core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.