HD - BUY - A Solid Start to 2026—Complex PRO Ecosytem Build-Out Continues; $425 Price Target

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HD - BUY - A Solid Start to 2026—Complex PRO Ecosytem Build-Out Continues; $425 Price Target

May 19, 2026

Steven Forbes, CFA, CPA steven.forbes@guggenheimpartners.com HD - BUY - A Solid Start to 2026—Complex PRO

212 381 4188 Ecosytem Build-Out Continues; $425 Price Target

John Heinbockel

john.heinbockel@guggenheimpartners.com

212 381 4135 Key Message: As detailed within Exhibit 1, not only were HD's 1Q 2026 operating results

ahead of our expectations—as evidenced by 90 basis points of net sales upside and an Julio Marquez

julio.marquez@guggenheimpartners.com ~2.5% adjusted EBITDA beat—but management noted continued progressing & scaling

212 823 6605 against the company's various PRO ecosystem initiatives (inclusive of the business

tracking towards ~$400 million of cross-selling revenue synergies). In addition, we note Jacob Nivasch that management's reiterated outlook (Exhibit 2) excludes an estimated ~$700 million jacob.nivasch@guggenheimpartners.com

212 338 8837 of partial-year net sales associated with the recent acquisition of Mingledorff's. More

importantly, as we look out to 2027 (and beyond), we continue to expect the maturation of

Max Horowitz the company's various PRO ecosystem initiatives to widen the company's industry out- max.horowitz@guggenheimpartners.com

performance gap—fostering meaningful, and broad-based market share capture. We are 212 518 9974

essentially reiterating our estimates, BUY-rating, and $425 12-month price target.

A Solid Start to 2026 (In the Face of an Increasingly Pressured Consumer Demand

HD BUY Environment)—BalancingExhibit 1, HD's 1Q 2026 operatingShare &resultsMarginwerewithinbroadlyRoofingconstructive,(SRS). Asin detailedour view.withinNet

The Home Depot, Inc.