The Home Depot, Inc.: Focus on winning more Pro wallet gaining traction; Reiterate Buy

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The Home Depot, Inc.: Focus on winning more Pro wallet gaining traction; Reiterate Buy

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The Home Depot, Inc.

Focus on winning more Pro wallet gaining

traction; Reiterate Buy

Reiterate Rating: BUY | PO: 374.00 USD | Price: 302.44 USD

Maintain Buy; expect traffic to improve in 2H 19 May 2026

We maintain our Buy rating; we think HD’s comp growth will outperform driven by higher Equity

Pro penetration and expect traffic trends will hold up better than peers as we potentially

move past industry wide price increases in 2H. 1Q results were in line with expectations

Key Changesand HD reiterated its F26 EPS guidance. Comps increased 0.6% inclusive of a 55bp FX

tailwind. Transactions declined 1.3% offset by ticket +2.2%. Comps were positive in the (US$) Previous Current

first two weeks of May, a rebound from declines in the 2H of April impacted by weather. 2027E Rev (m) 171,019.5 171,154.3

2028E Rev (m) 177,860.2 178,000.5

Pro outperformance continues 2029E Rev (m) 185,863.9 186,010.5

Pro outperformance vs. DIY continued in 1Q. We argue more exposure to the Pro is a

better relative position during both a benign housing backdrop and a recovery scenario. Christopher Nardone

HD reported a positive comp in 9 out of 16 categories including strength in storage, ResearchBofAS Analyst

power, hardware, plumbing, electrical, bath, indoor garden, paint, and kitchen, reflecting +1 646 743 2016

strength in Pro heavy categories. Big ticket discretionary projects remain under pressure. christopher.nardone@bofa.com

We model gross margin flattish y/y in 2H, helped by GMS mix headwind starting to roll Madeline Cech Research Analyst

off in 3Q (partial headwind in 3Q since deal closed early Sept vs. ~40bp 1H headwind). BofAS

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