The Home Depot reported stronger first-quarter sales but lower earnings, as the home improvement retailer navigated cautious consumer spending and persistent housing market challenges.

The company reported first-quarter fiscal 2026 sales of $41.8 billion, up 4.8% from a year earlier, while reaffirming its full-year guidance despite continued pressure on housing affordability and cautious consumer spending.

Comparable sales rose 0.6% in the quarter, with U.S. comparable sales up 0.4%. Foreign exchange rates contributed about 55 basis points to total company comparable sales growth.

Net earnings fell to $3.3 billion, or $3.30 per diluted share, from $3.4 billion, or $3.45 per diluted share, in the prior-year period. Adjusted diluted earnings per share declined to $3.43 from $3.56 a year earlier.

“Our first quarter results were in line with our expectations,” Chair, President and CEO Ted Decker said in a statement. “The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure.”

The retailer reaffirmed its fiscal 2026 guidance, including total sales growth of 2.5% to 4.5% and comparable sales growth ranging from flat to 2%. The company also expects diluted earnings per share growth of flat to 4% from fiscal 2025 levels.

At the end of the quarter, Home Depot operated 2,361 stores and more than 1,280 SRS locations across North America and employed more than 470,000 associates.