Home Depot Q1 Beat Hides a Warning: Same-Store Sales Miss and Stock Falls 2.5% — What It Tells Us About Housing

# Home Depot Q1 Beat Hides a Warning: Same-Store Sales Miss and Stock Falls 2.5% — What It Tells Us About Housing

> **Quick answer:** Home Depot beat Q1 2026 EPS and revenue estimates but the stock fell 2.5% as comparable sales rose just 0.6% — missing the 0.9% analyst estimate. U.S. comps were even weaker at 0.4%. CFO Richard McPhail confirmed homeowners are actively deferring large renovation projects. With mortgage rates at 6.58% and housing turnover frozen, the market read this as a beat without the inflection point investors needed to see.

*This article is for informational purposes only and does not constitute financial advice. Consult a qualified financial advisor for personal financial decisions.*

Home Depot's Q1 2026 numbers landed Tuesday morning and looked fine on the surface. Revenue of $41.77 billion beat the $41.51 billion consensus. EPS of $3.43 cleared the $3.41 estimate. Management reaffirmed full-year guidance. By most scorecards, that is a win. The stock fell 2.5% anyway. That gap between what the headline says and what the market did is the real story — and it carries a precise signal about where the housing market stands right now.

## The Beat That Did Not Move the Needle

The headline numbers were solid enough. Revenue grew 4.8% year-over-year to $41.77 billion. Adjusted EPS came in at $3.43, ahead of estimates but down 3.7% from Q1 2025. The company reaffirmed its full fiscal 2026 guidance: total sales growth of 2.5% to 4.5%, comparable sales growth of flat to 2%, and EPS growth of flat to 4%.