The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 19 2026
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Analyst Views on HD
Wall Street analysts forecast HD stock price to rise
23 Analyst Rating
17 Buy
5 Hold
1 Sell
Moderate Buy
Current: 326.620
Low
320.00
Averages
401.47
High
441.00
Current: 326.620
Low
320.00
Averages
401.47
High
441.00
About HD
The Home Depot, Inc. is a home improvement retailer. The Company is engaged in retail operations and sells an assortment of home improvement products, building materials, lawn and garden products, decor products, and facilities maintenance, repair, and operations (MRO) products, in stores and online. It also provides a number of services, including home improvement installation services, and tool and equipment rental. It operates four lines of business: roofing and building products; interior and construction products; landscape, and pool. It operates a total of 2,361 retail stores and over 1,280 SRS locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. Its store averages 105,000 square feet of indoor retail space, interconnected with an e-commerce business that offers products for the do-it-yourself (DIY) customer, professional contractors, and the installation business for the Do-It-For-Me customer.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Home Depot's Resilient Outlook for 2026
- Sales Growth: In Q1 of fiscal 2026, Home Depot reported sales of $41.8 billion, reflecting a 4.8% increase year-over-year, while comparable sales rose only 0.6%, indicating a still-muted home improvement backdrop; however, the company maintained its full-year sales outlook, suggesting demand has not deteriorated beyond management's expectations.
- Management Confidence: CEO Ted Decker noted that underlying demand remains relatively similar to fiscal 2025 despite increased consumer uncertainty and housing affordability pressures, demonstrating the company's resilience in the current market environment.
- Full-Year Guidance: Home Depot reaffirmed its fiscal 2026 guidance for total sales growth of 2.5% to 4.5%, comparable sales growth of flat to 2%, plans to open approximately 15 new stores, and diluted EPS growth of flat to 4%, emphasizing stability rather than acceleration in growth.
- ETF Holdings: As of June 17, 2026, Home Depot constituted 3.87% of the O'Shares U.S. Quality Dividend ETF, reflecting investor confidence in its long-term performance despite ongoing market challenges.
See More
Key Highlights from Tuesday's CNBC Investing Club Meeting
- Market Volatility Analysis: Major indices rebounded from session lows on Tuesday, driven by gains in technology and defensive stocks, despite pressure from a sharp decline in South Korea's KOSPI Index and ongoing weakness in AI chip stocks, indicating short-term market volatility.
- Retail Stock Rating Adjustments: Wolfe Research downgraded Home Depot from buy to hold, citing that high interest rates could suppress housing market demand, while Evercore downgraded Nike ahead of its earnings report, reflecting concerns over potential estimate cuts and ongoing weakness in wholesale channels.
- FedEx Earnings Outlook: FedEx is set to report earnings on Tuesday evening, although analysts caution that the results may be complex to interpret due to the inclusion of the recently spun-off freight business, urging investors to focus on key metrics like pricing, volumes, and margins.
- Positive Market Outlook: Jeffries initiated coverage of the newly spun-off FedEx Freight with a buy rating and a $200 price target, citing strong margin improvement opportunities and a solid management team, with the Investing Club considering adding to its position if post-earnings volatility presents a buying opportunity.
See More
Market Update: Semiconductor and AI Stocks Decline Amid Concerns
- Nasdaq Futures Decline: Nasdaq futures are down about 2.5% this morning, heavily influenced by a 10% plunge in South Korea's stock market, with semiconductor and AI stocks experiencing the largest declines, reflecting growing concerns about the returns from AI spending.
- Bank of America Raises Chip Price Targets: Bank of America raised its price target for hold-rated Arm from $335 to $460, and Intel's target from $135 to $160, indicating increased analyst confidence in the semiconductor sector.
- SpaceX Coverage Initiated: Susquehanna initiated coverage of SpaceX with a hold rating and a $170 price target, noting that the company's markets are relatively unproven and recommending investors wait for a better entry point.
- Nike Downgraded: Evercore ISI downgraded Nike from buy to hold, expressing concerns that management may once again cut numbers, forcing Wall Street to reset its expectations ahead of the upcoming earnings report.
See More
Major Rating Changes on Wall Street
- IBM Upgrade: JPMorgan upgraded IBM from Neutral to Overweight, citing a deeper analysis of its software business that suggests significant performance acceleration in 2H'26, thereby enhancing market confidence in the company's growth trajectory.
- Qiagen Upgrade: Morgan Stanley upgraded Qiagen from Equal Weight to Overweight, noting that AI-driven growth improvements and the clearing of competitive risks are expected to positively impact the life sciences sector.
- Smurfit Westrock Initiation: Deutsche Bank initiated coverage of Smurfit Westrock with a Buy rating and a $57 price target, emphasizing its high-margin operations and strong market position as catalysts for value creation in the packaging industry.
- Target Upgrade: Wolfe upgraded Target from Peer Perform to Outperform, stating that now is the optimal time to buy, as the company is poised for significant improvements driven by store resets and a new leadership team shaking up the status quo.
See More
Long-Term Returns from Buffett's Investment Advice
- Buffett's Investment Achievements: Warren Buffett's tenure as CEO of Berkshire Hathaway from 1965 to 2025 saw the company grow into a $1 trillion conglomerate, delivering a compound annual return of 19.7%, meaning a $1,000 investment in 1965 would have grown to $48.4 million by 2025, showcasing his exceptional investment acumen and market insight.
- ETF Investment Recommendation: Buffett advises investors to buy ETFs that track the S&P 500, such as the Vanguard S&P 500 ETF (VOO), which boasts an extremely low expense ratio of just 0.03% and broad market coverage, helping average investors achieve long-term stable returns, particularly with a 12.9% annual return since his 2014 recommendation.
- Diversification Advantage of S&P 500: The S&P 500 index comprises 500 profitable companies across 11 economic sectors, ensuring a diversified and stable investment portfolio, with the information technology sector alone accounting for 38.6%, including giants like Nvidia and Apple with a combined market cap of $15.4 trillion, enhancing investment security and growth potential.
- Future Investment Opportunities: With the rise of emerging technologies like artificial intelligence, autonomous vehicles, and quantum computing, investing in the Vanguard S&P 500 ETF remains a wise choice, providing investors with high-growth opportunities while achieving solid risk diversification through hundreds of stocks, ensuring competitiveness in future markets.
See More
Buffett's Investment Wisdom and ETF Recommendation
- Buffett's Success Journey: Warren Buffett transformed Berkshire Hathaway into a $1 trillion conglomerate from 1965 to 2025, achieving a compound annual return of 19.7%, meaning a $1,000 investment in 1965 would have grown to an astonishing $48.4 million by the time he stepped down.
- ETF Investment Recommendation: Buffett's recommendation of the Vanguard S&P 500 ETF (VOO) in 2014, praised for its extremely low expense ratio of just 0.03%, would have turned a $10,000 investment into approximately $42,887 today, showcasing its long-term investment potential and value.
- Diversity of S&P 500: The S&P 500 index includes 500 companies with a minimum market cap of $22.7 billion, ensuring high-quality constituents, with the information technology sector holding a 38.6% weighting, and major firms like Nvidia, Apple, and Microsoft collectively valued at $15.4 trillion, enhancing portfolio stability.
- Future Investment Opportunities: With the rise of technologies like artificial intelligence, autonomous vehicles, and quantum computing, the S&P 500 is expected to benefit from these high-growth areas, making investment in the Vanguard S&P 500 ETF a strategic move to capture future market opportunities, with Buffett's advice remaining highly relevant 12 years later.
See More
Home Depot's Resilient Outlook for 2026
- Sales Growth: In Q1 of fiscal 2026, Home Depot reported sales of $41.8 billion, reflecting a 4.8% increase year-over-year, while comparable sales rose only 0.6%, indicating a still-muted home improvement backdrop; however, the company maintained its full-year sales outlook, suggesting demand has not deteriorated beyond management's expectations.
- Management Confidence: CEO Ted Decker noted that underlying demand remains relatively similar to fiscal 2025 despite increased consumer uncertainty and housing affordability pressures, demonstrating the company's resilience in the current market environment.
- Full-Year Guidance: Home Depot reaffirmed its fiscal 2026 guidance for total sales growth of 2.5% to 4.5%, comparable sales growth of flat to 2%, plans to open approximately 15 new stores, and diluted EPS growth of flat to 4%, emphasizing stability rather than acceleration in growth.
- ETF Holdings: As of June 17, 2026, Home Depot constituted 3.87% of the O'Shares U.S. Quality Dividend ETF, reflecting investor confidence in its long-term performance despite ongoing market challenges.
See More
Key Highlights from Tuesday's CNBC Investing Club Meeting
- Market Volatility Analysis: Major indices rebounded from session lows on Tuesday, driven by gains in technology and defensive stocks, despite pressure from a sharp decline in South Korea's KOSPI Index and ongoing weakness in AI chip stocks, indicating short-term market volatility.
- Retail Stock Rating Adjustments: Wolfe Research downgraded Home Depot from buy to hold, citing that high interest rates could suppress housing market demand, while Evercore downgraded Nike ahead of its earnings report, reflecting concerns over potential estimate cuts and ongoing weakness in wholesale channels.
- FedEx Earnings Outlook: FedEx is set to report earnings on Tuesday evening, although analysts caution that the results may be complex to interpret due to the inclusion of the recently spun-off freight business, urging investors to focus on key metrics like pricing, volumes, and margins.
- Positive Market Outlook: Jeffries initiated coverage of the newly spun-off FedEx Freight with a buy rating and a $200 price target, citing strong margin improvement opportunities and a solid management team, with the Investing Club considering adding to its position if post-earnings volatility presents a buying opportunity.
See More
Market Update: Semiconductor and AI Stocks Decline Amid Concerns
- Nasdaq Futures Decline: Nasdaq futures are down about 2.5% this morning, heavily influenced by a 10% plunge in South Korea's stock market, with semiconductor and AI stocks experiencing the largest declines, reflecting growing concerns about the returns from AI spending.
- Bank of America Raises Chip Price Targets: Bank of America raised its price target for hold-rated Arm from $335 to $460, and Intel's target from $135 to $160, indicating increased analyst confidence in the semiconductor sector.
- SpaceX Coverage Initiated: Susquehanna initiated coverage of SpaceX with a hold rating and a $170 price target, noting that the company's markets are relatively unproven and recommending investors wait for a better entry point.
- Nike Downgraded: Evercore ISI downgraded Nike from buy to hold, expressing concerns that management may once again cut numbers, forcing Wall Street to reset its expectations ahead of the upcoming earnings report.
See More
Major Rating Changes on Wall Street
- IBM Upgrade: JPMorgan upgraded IBM from Neutral to Overweight, citing a deeper analysis of its software business that suggests significant performance acceleration in 2H'26, thereby enhancing market confidence in the company's growth trajectory.
- Qiagen Upgrade: Morgan Stanley upgraded Qiagen from Equal Weight to Overweight, noting that AI-driven growth improvements and the clearing of competitive risks are expected to positively impact the life sciences sector.
- Smurfit Westrock Initiation: Deutsche Bank initiated coverage of Smurfit Westrock with a Buy rating and a $57 price target, emphasizing its high-margin operations and strong market position as catalysts for value creation in the packaging industry.
- Target Upgrade: Wolfe upgraded Target from Peer Perform to Outperform, stating that now is the optimal time to buy, as the company is poised for significant improvements driven by store resets and a new leadership team shaking up the status quo.
See More
Long-Term Returns from Buffett's Investment Advice
- Buffett's Investment Achievements: Warren Buffett's tenure as CEO of Berkshire Hathaway from 1965 to 2025 saw the company grow into a $1 trillion conglomerate, delivering a compound annual return of 19.7%, meaning a $1,000 investment in 1965 would have grown to $48.4 million by 2025, showcasing his exceptional investment acumen and market insight.
- ETF Investment Recommendation: Buffett advises investors to buy ETFs that track the S&P 500, such as the Vanguard S&P 500 ETF (VOO), which boasts an extremely low expense ratio of just 0.03% and broad market coverage, helping average investors achieve long-term stable returns, particularly with a 12.9% annual return since his 2014 recommendation.
- Diversification Advantage of S&P 500: The S&P 500 index comprises 500 profitable companies across 11 economic sectors, ensuring a diversified and stable investment portfolio, with the information technology sector alone accounting for 38.6%, including giants like Nvidia and Apple with a combined market cap of $15.4 trillion, enhancing investment security and growth potential.
- Future Investment Opportunities: With the rise of emerging technologies like artificial intelligence, autonomous vehicles, and quantum computing, investing in the Vanguard S&P 500 ETF remains a wise choice, providing investors with high-growth opportunities while achieving solid risk diversification through hundreds of stocks, ensuring competitiveness in future markets.
See More
Buffett's Investment Wisdom and ETF Recommendation
- Buffett's Success Journey: Warren Buffett transformed Berkshire Hathaway into a $1 trillion conglomerate from 1965 to 2025, achieving a compound annual return of 19.7%, meaning a $1,000 investment in 1965 would have grown to an astonishing $48.4 million by the time he stepped down.
- ETF Investment Recommendation: Buffett's recommendation of the Vanguard S&P 500 ETF (VOO) in 2014, praised for its extremely low expense ratio of just 0.03%, would have turned a $10,000 investment into approximately $42,887 today, showcasing its long-term investment potential and value.
- Diversity of S&P 500: The S&P 500 index includes 500 companies with a minimum market cap of $22.7 billion, ensuring high-quality constituents, with the information technology sector holding a 38.6% weighting, and major firms like Nvidia, Apple, and Microsoft collectively valued at $15.4 trillion, enhancing portfolio stability.
- Future Investment Opportunities: With the rise of technologies like artificial intelligence, autonomous vehicles, and quantum computing, the S&P 500 is expected to benefit from these high-growth areas, making investment in the Vanguard S&P 500 ETF a strategic move to capture future market opportunities, with Buffett's advice remaining highly relevant 12 years later.
See More
