Why This Matters to Distributors: Home Depot’s results reinforce the growing importance of professional contractor demand, repair activity and specialty trade distribution as homeowners continue delaying larger discretionary remodeling projects. The company’s continued investment in SRS Distribution also reflects the broader shift toward contractor-focused branch networks and jobsite delivery capabilities.
The Home Depot reported first-quarter fiscal 2026 sales increased 4.8% year over year to $41.8 billion, while net income declined 4.2% as operating costs increased and housing affordability pressure continued to weigh on consumer spending.
Net earnings for the quarter ended May 3 fell to $3.29 billion from $3.43 billion a year earlier.
Comparable sales increased 0.6% globally and 0.4% in the U.S., compared with a 0.3% decline in the same quarter last year.
CEO Ted Decker said demand trends remained consistent with fiscal 2025 as higher interest rates and housing affordability pressures continued to affect larger home improvement projects.
Professional contractor demand remained a more stable part of the business, supported by Home Depot’s continued expansion into specialty trade distribution through SRS Distribution.
Home Depot said it ended the quarter with more than 1,280 SRS locations in addition to its 2,361 retail stores across North America.
SRS has become a central part of Home Depot’s strategy to expand deeper into roofing, landscaping, pool, HVAC, and other professional contractor markets that rely on local branch networks, dedicated account management, and direct-to-jobsite fulfillment.
The company also referenced the expected impact of pending acquisitions, including GMS Inc., in its forward-looking statements.
Customer traffic trends reflected continued softness in discretionary consumer spending. Comparable customer transactions declined 1.3%, while total customer transactions fell 0.9% to 391.1 million. Average ticket size increased 2.3% to $92.76.
Operating income declined 3% year over year to $4.98 billion. Gross profit increased 2.4% to $13.8 billion, while selling, general and administrative expenses rose 5.7% to $7.96 billion.
Home Depot reaffirmed its fiscal 2026 guidance, projecting total sales growth of 2.5% to 4.5% and comparable sales ranging from flat to up 2%. The company said it expects diluted earnings per share growth of flat to 4% for the year.
The retailer also cited tariffs, trade policy uncertainty, housing market conditions, and supply chain disruption among the risks facing the business in 2026.
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