Home Depot, Inc. reported its financial results for the first quarter of fiscal 2026, revealing net sales of $41.8 billion, a 4.8% increase from $39.9 billion in the same period last year. The company's net earnings for the quarter were $3.3 billion, or $3.30 per diluted share, compared to $3.4 billion, or $3.45 per diluted share, in the first quarter of fiscal 2025. The increase in sales was primarily attributed to contributions from the recently acquired GMS, which added $1.3 billion to net sales, alongside a positive comparable sales environment and new store openings.
In terms of operational metrics, Home Depot's comparable sales rose by 0.6%, driven by a 2.2% increase in the average ticket size, although this was partially offset by a 1.3% decline in customer transactions. The company reported that online sales accounted for 16.5% of total net sales, reflecting a 10.5% increase year-over-year. The inventory turnover ratio was 4.2 times, slightly down from 4.3 times in the previous year, indicating higher average inventory levels during the quarter.
Strategically, Home Depot continues to focus on its expansion efforts, having opened one new store in the U.S. and one in Mexico, bringing the total store count to 2,361, with 325 of those located in Canada and Mexico. The company also operates over 1,280 locations within its SRS non-reportable segments. The acquisition of GMS, completed in September 2025, remains a significant development, enhancing Home Depot's distribution capabilities in specialty building products.
Financially, Home Depot generated $6.0 billion in cash flow from operations during the quarter, which was utilized to fund $2.3 billion in cash dividends, repay $1.4 billion of long-term debt, and support $844 million in capital expenditures. The company announced a 1.3% increase in its quarterly cash dividend to $2.33 per share. As of May 3, 2026, Home Depot had $1.6 billion in cash and cash equivalents, with a significant portion held by foreign subsidiaries, and approximately $11.7 billion remaining under its share repurchase authorization.
Looking ahead, Home Depot's management remains cautious about the impact of ongoing trade policy developments and consumer demand fluctuations on its business. The company plans to continue investing in its operations, with an expected capital expenditure of approximately $4 billion for fiscal 2026, while also prioritizing debt reduction and maintaining a strong liquidity position. The outlook reflects a commitment to navigating market challenges while leveraging growth opportunities through strategic initiatives and acquisitions.
About HOME DEPOT, INC.
The Home Depot, Inc. is the world's largest home improvement retailer, offering a broad range of building materials, appliances, decor, and MRO products through stores and online. Serving consumers and professionals, it provides products, installation services, tool rentals, and supply chain solutions. Its competitive advantages include a strong brand, extensive store network, integrated digital platforms, and a focus on customer experience, innovation, and operational efficiency.
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