Home Depot reported fiscal 1Q26 sales of $39.9 billion, up 9.4% year-over-year, driven in part by its acquisition of specialty trade distributor SRS Distribution and continued resilience from its professional contractor customer base.

Comparable sales declined 0.3% overall in the quarter ended May 4, while U.S. comparable sales increased 0.2%. Net earnings decreased to $3.4 billion from $3.6 billion a year earlier.

Company executives said high interest rates and ongoing pressure on larger discretionary home improvement projects continued to weigh on consumer demand, but professional customers remained relatively steady.

“Our results for the first quarter were in line with our expectations as we saw continued customer engagement across smaller projects and in our spring events,” Chairman, President and CEO Ted Decker said during the company’s earnings call.

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Home Depot continued to highlight momentum within its Pro ecosystem, particularly following the integration of SRS Distribution, which it acquired in 2024 for roughly $18 billion. SRS primarily serves roofing, landscaping and pool contractors across the U.S.

Executives said the acquisition continued to expand Home Depot’s reach among specialized contractors and strengthened its position with larger professional customers. Overall, HD said SRS continues to outperform expectations.

Home Depot completed its acquisition of HVAC distributor Mingledorff’s on May 11, adding 42 locations and expanding the business further into HVAC distribution beyond its traditional building materials focus.

The company said Pros continued to outperform DIY customers during the quarter, consistent with trends seen throughout the past two years. HD executives said smaller repair-and-maintenance projects remained healthy, while larger discretionary remodel projects continued to face pressure from elevated financing costs and cautious consumer spending.

Home Depot also pointed to growth in its Pro loyalty and digital capabilities, including continued adoption of its Pro Xtra platform and improvements in fulfillment options tailored to contractors.

“Our investments in the Pro ecosystem continue to resonate,” Decker said, citing enhanced delivery capabilities, trade credit offerings and jobsite-focused services.

The company maintained its full-year fiscal 2026 guidance, forecasting total sales growth of approximately 2.8% and comparable sales growth of about 1%. Home Depot also reiterated expectations for continued pressure on consumer big-ticket discretionary spending during the year.

Executives said they expect the broader home improvement market to remain relatively subdued in the near term but expressed confidence that underlying housing fundamentals and long-term repair-and-remodel demand remain supportive.

During the earnings call, executives also said the company has not yet seen significant demand disruption tied to tariffs or broader macroeconomic uncertainty, though they continue monitoring consumer sentiment and commodity costs closely.

Home Depot ended 1Q26 with 2,361 retail stores across North America and over 1,280 SRS locations across North America.