Home Depot reported first-quarter sales that exceeded Wall Street expectations, supported by persistent demand from professional customers and a segment of homeowners pursuing smaller, budget-conscious repair work. The company said its investments in in-store tooling and digital services have played a role in drawing professional (Pro) customers - including contractors and builders - who are engaged in larger-scale projects.
Those Pro purchases helped mitigate a continuing softness in do-it-yourself (DIY) remodeling activity, the company added. CEO Ted Decker said in a statement that underlying demand in the quarter was largely in line with what the company saw throughout fiscal 2025, even as consumers face greater uncertainty and housing affordability pressure.
On the numbers, the home improvement chain posted quarterly sales of $41.77 billion, topping analysts' estimates of $41.52 billion, according to data compiled by LSEG. The company maintained its annual guidance for a second straight update. Shares of the retailer were up roughly 1% in premarket trading following the report.
Drivers and market reaction
Executives highlighted the role of professional customers in supporting sales, noting that targeted investments - both in physical store capabilities and in digital tools - have helped bring Pro buyers into the chain. That demand from contractors and builders cushioned the company against lower activity among DIY remodelers, who continue to show relative weakness.
Despite the sales beat, Home Depot characterized consumer conditions as more uncertain, and pointed to housing affordability as a pressure on broader homeowner spending patterns. The company did not change its full-year outlook, signaling steady expectations for its operating environment.
Implications
- Retail results were supported by trade professionals, underscoring the importance of commercial and construction-related spending to the home improvement sector.
- Homeowner behavior appears to be shifting toward smaller, cost-conscious projects rather than larger DIY renovations.
- Maintaining annual guidance suggests management sees current demand trends as consistent with prior expectations.