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Home Depot (HD) is trading higher following its 4Q26 report, as investors welcome an EPS beat after three consecutive misses and better-than-expected comparable sales, even as headline revenue declined nearly 4% yr/yr to $38.2 bln due largely to last year’s 53rd week comparison. The quarter reflected steady underlying demand in a challenging housing backdrop, with strength in Pro, big-ticket categories, and digital helping offset ongoing pressure in larger discretionary projects. HD also reaffirmed its FY27 outlook, signaling confidence in market share gains despite muted industry growth expectations.

• EPS topped expectations, marking the first beat in four quarters, while revenue fell 3.8% yr/yr to $38.2 bln, in line with estimates and pressured by the prior-year 53rd week.
• Comparable sales rose 0.4% (U.S. +0.3%), ahead of expectations and slightly better than last quarter’s +0.1% U.S. comp, with January accelerating to +1.4% in the U.S.
• Comp growth was entirely ticket-driven, as average ticket increased 2.4% (price and mix), while transactions declined 1.6%. Encouragingly, big-ticket purchases over $1,000 rose 1.3%.
• Eight of 16 merchandising departments posted positive comps, with notable strength in power, plumbing, electrical, storage, indoor garden, bath and kitchen. Pro-heavy categories such as gypsum, wire and concrete also performed well.
• The Pro business once again delivered positive comps and outperformed DIY, supported by enhanced in-store engagement, outside sales execution, trade credit growth, and strong adoption of Pro-focused digital tools.
• Digital sales increased approximately 11% yr/yr, with over half of online orders fulfilled through stores. New real-time tracking for big and bulky deliveries and handheld-enabled logistics improvements enhanced customer visibility and reliability.
• AI-driven tools, including project management capabilities and “AI takeoff” list builders, are gaining traction with Pros, boosting conversion and engagement in complex projects while strengthening HD’s competitive positioning.
• FY27 guidance calls for comp growth of flat to +2%, revenue growth of approximately 2.5–4.5% ($168.8–$172.1 bln), and EPS growth of 0–4% ($14.69–$15.28), largely in line with expectations, though revenue at the midpoint is slightly below consensus.

Briefing.com Analyst Insight

After three consecutive EPS misses, returning to a bottom-line beat helps restore confidence in execution. While revenue declined due to calendar dynamics, underlying demand appears stable, with sequential comp improvement and a return to positive big-ticket growth -- an encouraging sign for project-related spending. Pro once again outperformed DIY, validating HD’s investments in trade credit, jobsite delivery, and digitally enabled planning tools. Strength in power, plumbing, electrical, and core building materials highlights resilience in necessity-driven and Pro-heavy categories, even as large discretionary remodels remain pressured. Digital sales growth of 11%, along with AI-powered project tools and enhanced delivery tracking, reinforces HD’s competitive positioning. With FY27 comps guided to flat-to-2% in a market expected to be roughly flat, management continues to signal market share gains despite a still-constrained housing backdrop.