Home Depot Shows The Housing Rebound Is Still Under Construction

Home Depot’s first-quarter report showed that the home-improvement market is still standing on uneven flooring. The company reported sales of $41.8 billion, up 4.8% from a year earlier, while comparable sales rose just 0.6% and U.S. comps increased 0.4%. Shares rose 0.9% Tuesday after the release, as investors found a retailer still grinding out sales growth even as housing affordability, consumer caution, and delayed renovation projects kept the big-ticket rebound out of reach.

The quarter’s tension showed up in the gap between overall sales growth and modest comparable sales. Home Depot’s top line benefited from a larger pro-distribution platform, including the GMS acquisition through SRS, but same-store demand remained slow. Net earnings fell to $3.3 billion from $3.4 billion a year earlier, and adjusted diluted earnings declined to $3.43 from $3.56. That made the quarter more about resilience than anything else — Home Depot is still moving product, but the housing cycle has not handed it an easy aisle to walk down.

The customer backdrop explains why. Management said underlying demand looked relatively similar to 2025, despite greater consumer uncertainty and housing affordability pressure. Americans have also been scaling back larger remodeling projects, while professional customers and smaller repair jobs gave Home Depot a steadier base. Home Depot’s upside is usually bigger when shoppers are funding remodels, not just fixes. This quarter still leaned closer to affordable repairs than full-scale renovations.

The outlook kept the quarter from setting off any alarms. Home Depot reaffirmed its fiscal 2026 guidance, including comparable sales growth from flat to 2% and adjusted diluted EPS growth from flat to 4%. That is not a boom forecast, but it does suggest management sees the business holding its ground until housing improves. The brighter blueprint comes later, if homeowners start trading quick fixes for bigger upgrades again. Until then, Home Depot is proving it can manage the slowdown without mistaking resilience for recovery.

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