Home Depot, Inc.

Top-line & comp performance (Q1): stable demand, modest growth; profitability down - Sales were $41.8B, +4.8% YoY (reported). - U.S. comps +0.4%; total company comps +0.6%; comp cadence: Feb +0.7%, Mar +2.0%, Apr -0.5% (April softened). - FX helped comps by about +55 bps. - Adjusted diluted EPS $3.43, down from $3.56; GAAP diluted EPS $3.30 (both down YoY). - Gross margin 33.0%, down ~75 bps YoY (mix impact tied to GMS acquisition).

Profitability drivers & cost structure - Operating expense as % of sales increased ~20 bps to 21.1%; operating margin 11.9% vs 12.9% prior year. - Adjusted operating margin 12.3% vs 13.2% prior year (excluding intangible amortization). - ROI (ROIC) 25.4%, down from 31.3% in the comparable quarter (trailing measure).

Outlook / guidance (favorable but cautious): reaffirmed; comp expected flat-to-up modestly - Company reaffirmed fiscal 2026 guidance: - Comp sales: flat to +2% (U.S. market expected to be moderately better in 2H via “normal store activity,” not a demand boom). - Total sales: +2.5% to +4.5% (includes GMS contribution, new stores, branches, tuck-ins). - SRS organic sales: mid-single-digit % growth. - Margin/earnings expectations: - Gross margin ~33.1% - Operating margin ~12.4%–12.6%, adjusted operating margin ~12.8%–13.0% - Effective tax rate ~24.3% - EPS & adjusted EPS: flat to +4% YoY - Capex: ~2.5% of sales for fiscal 2026.