Home Depot Q1 profit falls as cost growth outpaces revenue

US location betterment retailer The Home Depot posted first-quarter fiscal 2026 nett income of $41.76bn, a 4.8% year-on-year (YoY) increase, though rising costs weighed connected profitability crossed the period.

For the 4th ended 3 May 2026, nett net declined 4.2% to $3.28bn.

The diminution reflected outgo of income increasing astatine 6% - outpacing gross maturation – to scope $27.98bn, which compressed gross nett to $13.78bn, a emergence of conscionable 2.4%.

Operating income dropped 3% to $4.98bn.

Diluted net per stock came successful astatine $3.30, down 4.3%, portion the adjusted fig stood astatine $3.43 against $3.56 a twelvemonth earlier.

Comparable income edged up 0.6% for the quarter, with US comparable income advancing 0.4%.

Home Depot chair, president and CEO Ted Decker said: “Our archetypal 4th results were successful enactment with our expectations. The underlying request successful our concern was comparatively akin to what we saw passim fiscal 2025, contempt greater user uncertainty and lodging affordability pressure.

“As always, our associates provided fantabulous lawsuit work during the quarter, and I would similar to convey them for their continued hard enactment and dedication to serving our customers.”

The institution near its full-year outlook unchanged, forecasting full income maturation of betwixt 2.5% and 4.5%, comparable income maturation ranging from level to 2.0%, and astir 15 caller store openings during the fiscal year.

Both diluted and adjusted diluted net per stock are projected to turn astatine a complaint of level to 4.0%, from basal figures of $14.23 and $14.69, respectively, successful fiscal 2025.

Last month, Home Depot completed the acquisition of SIMPL Automation, a Massachusetts-based concern specialising successful automation and exertion systems.

The institution said SIMPL applies engineering and AI technologies to assistance organisation sites tally "faster and much efficiently", arsenic the retailer looks to measurement up automation crossed its proviso chain.

"Home Depot Q1 nett falls arsenic outgo maturation outpaces revenue" was primitively created and published by Retail Insight Network, a GlobalData owned brand.

The accusation connected this tract has been included successful bully religion for wide informational purposes only. It is not intended to magnitude to proposal connected which you should rely, and we springiness nary representation, warranty oregon guarantee, whether explicit oregon implied arsenic to its accuracy oregon completeness. You indispensable get nonrecreational oregon specializer proposal earlier taking, oregon refraining from, immoderate enactment connected the ground of the contented connected our site.