The Home Depot Inc. (NYSE:HD) on Tuesday reported first-quarter fiscal 2026 sales of $41.77 billion, up 4.8% year over year and above analyst estimates of $41.53 billion.

Comparable sales increased 0.6%, while U.S. comparable sales rose 0.4%. Foreign exchange rates contributed about 55 basis points to comparable sales growth.

Earnings And Margins

Net earnings declined 4.2% to $3.29 billion, or $3.30 per diluted share, from $3.43 billion, or $3.45 per diluted share, a year earlier.

Adjusted diluted EPS fell to $3.43 from $3.56 but beat analyst estimates of $3.41.

Operating income decreased 3% to $4.98 billion. Operating margin narrowed to 11.9% from 12.9%, while adjusted operating margin declined to 12.3% from 13.2%.

Gross margin fell to 33.0% from 33.8%, while SG&A expenses rose 5.7% to $7.96 billion.

"Our first ...