Guidance
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FY2026 Q1
In line
Home Depot, Inc. (The) earnings call
Buzzberg read
Second-half comp acceleration is expected solely from storm-activity normalization.
Home Depot reported Q1 2026 results in line with expectations, with total sales up 4.8% and comps up 0.6%. Guidance is maintained. Management emphasized that underlying demand is stable but weak, with pro outperforming DIY. The big news is the further expansion into the $100B HVAC distribution market with the acquisition of Mingledorff's, and continued success growing the SRS/GMS pro distribution platform, which is taking significant share. Home Depot reaffirmed its full-year guidance for FY2027 (flat to +2% comps, +2.5-4.5% total sales growth) despite a more volatile macro backdrop, citing stable underlying demand.
Buzzberg read Second-half comp acceleration is expected solely from storm-activity normalization. Home Depot reported Q1 2026 results in line with expectations, with total sales up 4.8% and comps up 0.6%. Guidance is maintained. Management emphasized that underlying demand is stable but weak, with pro outperforming DIY. The big news is the further expansion into the $100B HVAC distribution market with the acquisition of Mingledorff's, and continued success growing the SRS/GMS pro distribution platform, which is taking significant share. Home Depot reaffirmed its full-year guidance for FY2027 (flat to +2% comps, +2.5-4.5% total sales growth) despite a more volatile macro backdrop, citing stable underlying demand. Read full analysisCollapse analysis
Home Depot reported Q1 2026 results in line with expectations, with total sales up 4.8% and comps up 0.6%. Guidance is maintained. Management emphasized that underlying demand is stable but weak, with pro outperforming DIY. The big news is the further expansion into the $100B HVAC distribution market with the acquisition of Mingledorff's, and continued success growing the SRS/GMS pro distribution platform, which is taking significant share. Home Depot reaffirmed its full-year guidance for FY2027 (flat to +2% comps, +2.5-4.5% total sales growth) despite a more volatile macro backdrop, citing stable underlying demand.
- The company completed the acquisition of Mingledorff's, a major HVAC distributor in the Southeast, expanding its total addressable market to $1.2 trillion. This is seen as a major step in capturing a fragmented market.
- SRS continues to outperform and is taking significant share in roofing and other markets, though it faces headwinds from a weak market.
- Pro (professional) customers continue to outperform DIY, driven by investments in trade credit, digital tools, and the SRS/GMS distribution network.
Revenue$41.765B+9% QoQ
EPS$3.43+26% QoQ
Gross margin33%Reported
ADJUSTED Operating margin12.3%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Pro
Pro comps again outperformed DIY, with complex purchases the strongest.
Digital
Online sales grew double digits for the fourth consecutive quarter.
Show 3 more callouts
M&A
Mingledors acquisition closes and expands TAM to $1.2 trillion.
Trade Credit
Pro trade credit is gaining traction with builders and large remodelers.
Margins
Management flags rising fuel and tariff cost pressures on margins.
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $41.765B | +9% QoQ |
| EPS | $3.43 | +26% QoQ |
| Gross margin | 33% | Reported |
| ADJUSTED Operating margin | 12.3% | Reported |
| Operating margin | 11.93% | Reported |
| Free cash flow | $5.188B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2027 | $0.00–$4.00 | $2.00 | Maintained |
| Gross margin | FY2027 | 33.1% | 33.1% | Maintained |
| Operating margin | FY2027 | 12.4%–12.6% | 12.5% | Maintained |
| Operating marginADJUSTED | FY2027 | 12.8%–13% | 12.9% | Maintained |
AI, capex & demand read
Management read
Cautiously Confident
Management reaffirmed guidance and repeatedly said results were in line with expectations, while acknowledging consumer uncertainty, big-ticket project pressure, and rising input-cost risks.
Management AI read
Management described AI as a pro-productivity enabler: pros now have all AI-enabled tools under a single workspace, including an AI-powered material list builder and complex order scheduling. They framed it as improving pro loyalty and reducing friction, with no standalone AI revenue or adoption metrics discussed.
Investment and capacity
Capex remains steady at roughly 2.5% of sales for fiscal 2026, with Q1 spend of approximately $845 million. The investment emphasis is on the core store experience, interconnected fulfillment/delivery assets, SRS branch expansion, and tuck-in M&A such as Mingledors to grow the pro distribution platform.
all 8 named companies below
Companiesreturns since call
Suppliers
Suppliers
Ted Decker
Home Depot and SRS are winning significant share in the $100B HVAC distribution market with the recent Mingledorff's acquisition, which will be a new platform for growth. — Shows a major retailer is aggressively consolidating a fragmented market, which could shift pricing power. It also indicates a strong relationship with Carrier, potentially boosting CARR's volumes.
Evidence
“Mingledorf is a leading distributor in the Southeast. As I mentioned, they're a carrier-focused distributor.”
Suppliers
Billy Bastic
Mentions strong demand for cordless outdoor power equipment, benefiting suppliers like Ryobi (TTI) and Milwaukee (TTI).
Evidence
“our lineup of battery-powered tools across Ryobi, Milwaukee, DeWalt, and Makita is unmatched”
Suppliers
Billy Bastic
Ram Board (ticker R, likely a company named Ram Board, but more likely referring to the brand of the same name) gains exclusive retail distribution through HD, which could significantly increase its volumes.
Evidence
“This quarter, I'm excited to announce that Ramboard will be exclusive to the Home Depot and the Big Box retail channel.”
Supply chain
Supply chain
Ted Decker
The new HVAC acquisition (Mingledorff's) is compared favorably to GMS, which is a peer in distribution. Ticker GMS is likely directly impacted by competition and consolidation in the building materials distribution space.
Evidence
“we are super excited about Mingledorf. ... We have always liked the HVAC business. They are a leader in the five southeastern states. I mentioned, again, why do we like things like roofing and pool and landscape in HVAC? It is more repair,”
Supply chain
Ted Decker
SRS is beating the market by 300+ basis points. This gives margin and share strength, especially in a weak demand environment. — This signals that SRS is not just growing with the market but is taking significant market share from peers like BECN, which is a bearish signal for those competitors.
Evidence
“It's remarkable, SRS's performance in Q1. They beat their competition in each sector by hundreds and hundreds of basis points.”
External signals
Supply-chain alpha · 5returns since call
Home Depot and SRS are winning significant share in the $100B HVAC distribution market with the recent Mingledorff's acquisition, which will be a new platform for growth.
Evidence
“HVAC distribution represents an addressable market of approximately $100 billion and increases our total addressable market to $1.2 trillion. SRS can now serve more pros in one greater share of wallet in this highly fragmented market.”
SRS is beating the market by 300+ basis points. This gives margin and share strength, especially in a weak demand environment.
Trade credit is being rolled out steadily and adoption is happening faster with larger, more complex projects.
Evidence
“What's most encouraging is that we're winning exactly where we would expect to with single and multifamily builders and with large remodelers. And we're seeing strong adoption in longer lead time categories like on windows, doors and appli…”
Home Depot's pro digital workspace is gaining traction and the asset-based delivery model is improving on-time and complete performance to record highs.
Home Depot is now cross-selling $400 million annually between its SRS, GMS, and HD Supply platforms.
Methodology & coverage
Management-only analysis. All 8 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.