Home Depot reported better-than-expected first-quarter results with adjusted earnings per share of $3.43 and revenue of $41.77 billion, up about 5% year over year, topping analyst estimates.

Operating income declined about 3% to $4.98 billion, with adjusted operating income down 2.3% to $5.15 billion and an adjusted operating margin of 12.3%, down from 13.2% a year earlier.

GAAP results showed earnings of $3.30 per share on $41.765 billion in revenue, versus $3.45 per share and $39.856 billion a year ago.

Recent acquisitions, including SRS Distribution in 2024 for $18.25 billion and Mingledorff’s completed in 2026, expand professional channels in roofing, HVAC, and related markets.

Investments in in-store tools and digital capabilities have attracted professional contractors and builders to pursue larger projects, offsetting weakness in DIY remodeling.

Home Depot reaffirmed its full-year forecast for 2026, signaling confidence despite macro pressures.

Analyst Neil Saunders lauds Home Depot as well-run and dominant in its sector, noting a shift toward pro customers while calling for improvements in consumer-facing areas.

Shares edged higher before the market opened on Tuesday.

The core Home Depot homeowner shopper remains resilient despite higher gas prices and softer consumer confidence, though larger projects are being deferred amid geopolitical tensions.

The company is pursuing a roughly $700 billion pro market opportunity, aiming to win a larger share through investments and acquisitions.

Pro customers (contractors and roofers) remain a strength, now about 50% of revenue, supported by strategic acquisitions that deepen pro capabilities.

The company will hold a conference call at 9 a.m. ET to discuss results, with a webcast and replay available, and notes that results are subject to forward-looking statements.