HD · 10-Q · 2026Q2 · Full report
Gross Margin Drivers
HOME DEPOT, INC. · 2026-05-27 · Importance 25 · Surprise 32
Gross profit for Q1 fiscal 2026 was $13.8 billion, up $322 million or 2.4% from $13.5 billion in Q1 fiscal 2025. Gross profit margin declined to 33.0% from 33.8% year-over-year, primarily reflecting inclusion of GMS in consolidated results. Cost of sales rose to $27.984 billion from $26.397 billion, an increase of $1.587 billion, consistent with the revenue contribution from acquisitions and SRS. Management attributes the margin decline mainly to mix effects from integrating GMS into the company’s product and distribution mix.