Home Depot reported adjusted earnings per share of $3.43, slightly exceeding Wall Street's expectation of $3.41, and revenue of $41.77 billion, surpassing the anticipated $41.52 billion. The company's net income for the quarter was $3.29 billion, down from $3.43 billion a year earlier.
Despite facing challenges such as rising geopolitical tensions and a sluggish housing market, Home Depot's finance chief Richard McPhail noted that core homeowners remain financially resilient, although they are deferring larger project spending. The company expects fiscal 2026 sales growth between 2.5% and 4.5%, slightly below analyst expectations of around 4%.
Home Depot is also focusing on expanding its professional customer base, which currently contributes about 50% of its revenue, through strategic acquisitions like SRS Distribution and GMS. These moves aim to capture a larger share of the $700 billion pro market, which McPhail believes the company has the potential to dominate in the future