Home Depot forecast lower-than-expected sales growth for fiscal 2026 amid an extended downturn in home-improvement activity. The company expects sales to grow between 2.5% and 4.5% next year, below the 4.5% analyst consensus cited by WSJ, based on FactSet data. It also projects flat to 4% growth in earnings per share and up to 2% in comparable sales.
In its recovery scenario, Home Depot expects sales to rise 5% to 6%, comparable sales to climb 4% to 5%, and earnings to grow in the mid- to high-single digits. Chief Financial Officer Richard McPhail said the company anticipates the housing sector will recover faster than the broader economy, supporting renewed growth in home improvement.
For the current fiscal year, Home Depot reaffirmed its forecast of 3% sales growth, slightly positive comparable sales, and a 6% decline in earnings. The company cut its outlook last month due to continued weakness in renovation demand. Builders including Toll Brothers and Hovnanian said high mortgage rates and tariff-driven economic uncertainty are discouraging home purchases.
