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HOME DEPOT, INC. 8-K Report, Financial Results (May 19, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 19, 2026
Period End
May 19, 2026
Security
HD
In the record · 2016–202610-K1110-Q328-K121

HD filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 121 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · May ’22May ’22
  2. Leadership change8-K · May ’24May ’24

01—Abstract

Summary

Summary of the 8-K filed May 19, 2026. Cited figures are marked; the original filing is the authoritative source.

The Home Depot (HD) reported first quarter fiscal 2026 results (quarter ended May 3, 2026) with net sales of $41.8 billiona, up 4.8% year over year, and comparable sales up 0.6%, of which U.S. comparable sales rose 0.4%.

Foreign exchange added roughly 55 basis points to total company comparable sales. Growth was driven largely by acquisitions and FX rather than underlying traffic, as comparable customer transactions fell 1.3%b while the comparable average ticket rose 2.2%. Management described underlying demand as relatively similar to fiscal 2025, citing greater consumer uncertainty and housing affordability pressure.

Profitability declined. GAAP operating income fell 3.0% to $4.98 billionc, and operating margin contracted about 100 basis points to 11.9%. GAAP diluted EPS was $3.30, down from $3.45, and adjusted diluted EPS (excluding acquired intangible amortization) was $3.43, down from $3.56.

Growth in SG&A (5.7%) and D&A (5.7%) outpaced gross profit growth (2.4%), reflecting the SRS and GMS acquisitions and associated intangible amortization. Operating cash flow improved sharply to $6.0 billiond from $4.3 billion, aided by a $1.3 billion working capital inflow, while accounts payable rose and inventories increased to $27.3 billion. Home Depot reaffirmed all fiscal 2026 guidance: total sales growth of 2.5% to 4.5%, comparable sales of flat to 2.0%, GAAP diluted EPS growth of flat to 4.0% from $14.23, and adjusted diluted EPS growth of flat to 4.0% from $14.69.

The company also reiterated roughly 15 new stores and capital expenditures of about 2.5% of sales. Reaffirmation at the midpoint of a wide range, after a quarter with soft comps and margin pressure, signals management confidence in second-half recovery but leaves limited room for error. Investors will likely focus on whether transaction trends stabilize and whether acquisition-driven margin dilution moderates.

02—Key points

Key Highlights

  1. Net sales rose 4.8% to $41.8 billion, but comparable sales grew only 0.6% (U.S. +0.4%), with FX contributing about 55 bps.
  2. Comparable customer transactions declined 1.3%; growth came from a 2.2% increase in comparable average ticket.
  3. GAAP operating income fell 3.0% to $4.98 billion; operating margin compressed to 11.9% from 12.9%.
  4. GAAP diluted EPS was $3.30 vs. $3.45 a year ago (down 4.3%); adjusted diluted EPS was $3.43 vs. $3.56 (down 3.7%).
  5. Operating cash flow increased to $6.0 billion from $4.3 billion, helped by a $1.3 billion working capital inflow.
  6. Fiscal 2026 guidance was fully reaffirmed, including comparable sales of flat to 2.0% and EPS growth of flat to 4.0%.
  7. Balance sheet grew with total assets of $107.9 billion; goodwill and intangibles rose on acquisitions, and short-term debt was reduced to $3.5 billion from $4.5 billion at year-end.

03—Questions

Frequently Asked Questions

  1. Why did earnings decline despite higher sales?

    Sales grew 4.8%, but gross profit rose only 2.4% and SG&A and D&A each rose 5.7%. Costs from acquisitions, including SRS and GMS, along with higher intangible amortization, outpaced sales growth, which pushed operating income down 3.0%.

  2. How much of the sales growth came from the existing store base?

    Comparable sales rose only 0.6%, and U.S. comparable sales rose 0.4%. Most of the total 4.8% sales increase reflects acquired businesses such as SRS and GMS, plus about 55 basis points of favorable FX on comparable sales.

  3. Did management change its fiscal 2026 outlook?

    No. Home Depot reaffirmed all fiscal 2026 guidance, including total sales growth of 2.5% to 4.5%, comparable sales of flat to 2.0%, gross margin of about 33.1%, and adjusted operating margin of 12.8% to 13.0%.

  4. What is the difference between GAAP and adjusted EPS?

    Adjusted diluted EPS excludes the after-tax impact of amortization of acquired intangible assets, which was $0.17 per share pre-tax-adjustment in Q1 and is expected to be about $0.50 for fiscal 2026. GAAP EPS is the primary measure, and the adjusted figure is supplemental.

  5. Is Home Depot's balance sheet and cash generation under pressure?

    Not materially in this quarter. Operating cash flow rose to $6.0 billion, cash dividends of $2.3 billion were covered, and short-term debt was reduced by about $1.0 billion. Total debt remains substantial, with long-term debt of $44.8 billion plus current installments of $5.2 billion, so leverage is a continuing consideration.

04—Continue

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