Home Depot (NYSE:HD) reported $39.9 billion in revenue for the first quarter of fiscal 2026, a 9.4% increase from the previous year. U.S. comparable sales rose modestly by 0.2%, while adjusted diluted earnings per share (EPS) came in at $3.56, a slight decline from $3.67 year-over-year. Chairman, President and Chief Executive Officer Ted Decker noted that the quarter’s results met internal expectations despite unfavorable weather and foreign exchange pressure.
Consumer activity remained focused on smaller-scale home projects, with discretionary large remodels still subdued due to higher interest rates. Amid these shifting patterns, the company underscored its focus on technology as a growth enabler.
Key initiatives included the deployment of generative AI tools for both store associates and digital customers, targeted training certifications, ongoing supply chain digitization, and an integrated Pro credit system rollout through its SRS acquisition.
Executives emphasized that these innovations are reinforcing customer satisfaction, driving productivity, and enabling scalable capabilities to better serve both DIY and Pro segments.
Why It Matters: Home Depot’s technology roadmap reflects a strategic commitment to digital infrastructure, AI integration, and scalable customer platforms, precisely the kind of transformation IT and operations leaders must prioritize. As the macro backdrop remains uneven, the company’s emphasis on elasticity modeling, trade credit integration, and AI-powered associate enablement offers a real-world blueprint for tech-forward resilience. These developments directly impact how product knowledge, logistics, and customer support are delivered and serve as a benchmark for CIOs and CTOs in retail and beyond.
- Generative AI Empowering Associates and Digital Customers: Home Depot is scaling its use of generative AI across both its physical stores and digital platforms. In stores, associates now use AI-powered tools on HD phones to instantly access product tutorials and operational guides. Online, the new “Magic Apron” feature uses generative AI to summarize product reviews and provide expert answers to customer questions. These tools are designed to replicate the in-store advisory experience in digital form, enhancing confidence and conversion for DIY and pro customers alike.
- AI-Driven Training and Certification Programs Boost Store Readiness: The company launched a certification program for associates this quarter, aimed at improving localized product knowledge during the high-traffic spring season. In tandem, the Pocket Guide app continues to serve as a key mobile tool that delivers AI-assisted tutorials and how-to guides. “We are introducing new tools using generative AI that… provide store associates quick access to operational and product knowledge via their HD phone,” said Ann-Marie Campbell, Senior Executive Vice President, U.S. Stores and International Operations.
- Digital Sales Acceleration Backed by Delivery Speed Investments: Online comparable sales increased approximately 8% year-over-year, driven in part by backend infrastructure improvements. The company highlighted continued investment in DFC (Direct Fulfillment Centers) and last-mile speed optimization, enabling faster deliveries across a broader range of SKUs. “Speed is the key metric to conversion,” noted Billy Bastek, Executive Vice President Merchandising, adding that customers who benefit from faster delivery are spending more and returning more frequently.
- Advanced Elasticity Modeling and SKU-Level Cost Intelligence: Home Depot continues to leverage technology-driven elasticity models and SKU-level sourcing visibility to manage pricing amid tariff headwinds. These internal systems allow the company to understand country-level cost impacts and assess whether to maintain, adjust, or exit specific product lines. “We have robust product and project elasticity models at the market level,” said Decker, underscoring the strategic role of analytics in pricing discipline.
- Integrated Trade Credit Platform Powered by SRS Expertise: A major IT integration underway is the transition of Home Depot’s Pro trade credit program to SRS Distribution’s systems. SRS, which Home Depot acquired in 2024, brings with it a mature digital credit infrastructure managing over 90,000 accounts. Now being adapted to Home Depot’s broader Pro customer base, this system allows for scalable onboarding and credit access, supported by real-time data integration and CRM alignment, a critical step in building the “Pro ecosystem” digitally.
Go Deeper -> Home Depot Quarter Results – MarketBeat
