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Backs FY26 revenue view up 2.5%-4.5%. Backs FY26 comparable sales view flat to up 2%. Backs FY26 capital expenditures view 2.5% of total sales.

Reports Q1 revenue $41.77B, consensus $41.51B. Comparable sales for Q1 increased 0.6%, and comparable sales in the U.S. increased 0.4%. "Our first quarter results were in line with our 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," said Ted Decker, chair, president and CEO. "As always, our associates provided excellent customer service during the quarter, and I would like to thank them for their continued hard work and dedication to serving our customers."

Notable companies reporting before tomorrow's open, with earnings consensus, include Home Depot (HD), consensus $3.42... Amer Sports (AS), consensus 31c.

Home improvement retailers Home Depotand Lowe'sare scheduled to report results of their first quarters before the market open on Tuesday, May 19, and Wednesday, May 20, respectively. Home Depot's conference call is scheduled for 9:00 am EDT on Tuesday and Lowe's will hold its quarterly call on Wednesday at 9:00 am EDT. What to watch for:HOUSING MARKET COMMENTARY:Economic uncertainty coupled with rising building material costs and interest rates resulted in a sharp decline in builder sentiment in April as the housing market enters into the heart of the spring buying season. Builder confidence in the market for newly built single-family homes fell four points to 34 in April, according to the National Association of Home Builders/Wells Fargo Housing Market Index released on April 15. This is the lowest level since September 2025. "Builder sentiment has fallen back in spring as buyers face ongoing elevated interest rates and growing economic uncertainty," said NAHB Chairman Bill Owens. "The year started with hopes for housing momentum growth, but risks with respect to the Iran war, energy costs, and declines for consumer confidence have slowed the market."OUTLOOK:In February, Home Depot forecast fiscal 2026 adjusted EPS flat to up 4% from $14.69, while revenue is expected to be up 2.5%-4.5% and comparable sales are forecast to be flat to up 2%. Analysts currently expect FY26 EPS of $15.05 on revenue of $171.13B.Lowe's, meanwhile, forecast FY26 adjusted EPS of $12.25-$12.75 on revenue of $92B-$94B and comparable sales flat to up 2%. Analysts currently expect FY25 EPS of $12.61 on revenue of $93.08B. Lowe's said its FY26 outlook reflects "ongoing uncertainty in the home improvement market."Ahead of Q1 earnings reports from the home improvement retailers, Stifel reduced its Q2-Q4 comparable sales estimates to assume a more stagnant performance, reflecting its "incremental caution" about near-term prospects, bringing its FY26 comparable sales in-line with consensus.'SUBDUED' EXPECTATIONS:Last week, Bernstein lowered the firm's price target on Lowe's and Home Depot, telling investors that expectations remain subdued for both companies. Bernstein expects higher comparable sales from Home Depot as the SRS acquisition gives it exposure to benefit from snowstorm-related repair/maintenance activities. For the full year, the firm doesn't expect Home Depot and Lowe's to update guidance just yet, as both contemplated a wide range of scenarios.Citi said that while the consumer has remained "resilient," concerns are higher around weakness going forward. The firm sees mostly in-line to slightly above the Street estimate Q1 reports.DISCRETIONARY 'OUT OF FAVOR':Wells Fargo said that discretionary is out of favor, recent checks were soft and guiding for a second half of the year acceleration is treated as a punishable offense. Nearly every company in Wells' Hardlines coverage is down year-to-date as stimulus hopes fade, oil prices spike and underlying trends weak, the firm said last week.SENTIMENT:Check out recent Media Buzz Sentiment forandas measured by TipRanks.