$HD Earnings Recap: Revenue Down 3.8%, EPS Falls 14.2%

What changed

Home Depot (HD) posted its latest earnings on May 19, 2026, and the headline numbers came in soft. Revenue declined 3.8% year over year, and earnings per share dropped 14.2% over the same period. Both figures moved in the wrong direction, and the EPS contraction is notably steeper than the revenue slide — a sign that margin pressure or cost increases are eating into the bottom line faster than the top-line softness alone would suggest.

At a current price of $298.55 and a market cap of $298.62B, the stock is trading at a trailing P/E of 21.1. The forward P/E of 18.4 implies the market is pricing in some earnings recovery ahead, though the current results don't yet support that narrative. The dividend yield stands at 3.1%, which gives income-focused holders something to hold onto while the business works through this stretch.

The ACCE score for HD currently sits at 35 out of 100, reflecting the deteriorating fundamentals. Analyst consensus carries a price target of $395.48 — a significant premium to where the stock trades today — but we don't have guidance commentary from management to contextualize whether that target reflects realistic near-term expectations or longer-horizon optimism.

What it means

The gap between a 3.8% revenue decline and a 14.2% EPS drop is the most important detail in this report. When earnings fall nearly four times faster than sales, it typically points to one or more of the following: rising input or labor costs, weaker operating leverage as volumes shrink, or increased interest expense. Without guidance commentary, we can't confirm which factors management is flagging as primary drivers or how long they expect the pressure to last.

The housing market backdrop matters here. Home Depot's business is closely tied to home improvement activity, which tends to slow when existing home sales are sluggish and consumers feel less confident about big-ticket discretionary spending. A 3.8% revenue drop in that context isn't a surprise, but it does confirm the macro headwinds are showing up in the actual numbers.

The forward P/E of 18.4 versus the trailing P/E of 21.1 tells you the market still expects earnings to grow from here. That's a reasonable bet on a long-cycle business with HD's scale and brand, but it's a bet that requires the current cost and revenue pressures to ease. If they don't, that forward multiple will look optimistic in the next reporting period.

For the current ACCE score and live price, visit acceinvestments.com/stocks/HD.