Home Depot on Tuesday reported a decline in first-quarter profit compared with the same period a year ago, though the home-improvement retailer’s results surpassed Wall Street forecasts, as purchases by professional contractors and spring do-it-yourself demand helped offset a housing market under strain from elevated mortgage rates and consumer uncertainty.
Profit fell from the prior-year quarter, but Home Depot’s performance still exceeded expectations. “The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure,” CEO Ted Decker said.
The U.S. housing market has remained static during what is traditionally its busiest season. The National Association of Realtors said a week earlier that existing home sales in April edged up just 0.2% from March, reaching a seasonally adjusted annual rate of 4.02 million units, and were unchanged compared with April 2025.
Sales of previously occupied homes have been essentially flat, reflecting the drag from high mortgage rates that have kept many would-be buyers and sellers on the sidelines. Home Depot’s ability to beat expectations amid those conditions suggests that spending on home maintenance and repair — both by professionals and by homeowners — continues to provide a floor for the company’s results.