Home Depot Warns Americans Are Delaying Big Home Improvement Projects as Inflation Squeezes Budgets

Aaron McDade

Tue, May 19, 2026 at 11:54 AM EDT 2 min read

Key Takeaways

• Home Depot executives said Tuesday that inflation is leading consumers to continue delaying some larger home improvement projects.

• The retailer beat sales and profit estimates, but its comparable store sales growth was lower than expected in the first quarter.

Many Americans are holding back on pricey home improvement projects as the Iran war drives up inflation and squeezes budgets, according to executives at Home Depot.

Home Depot (HD) CFO Richard McPhail told CNBC in a televised interview Tuesday that Home Depot's customers "continue to tell us that they are going to defer their spend on larger projects," in the face of rising prices, echoing earlier comments.

Persistent inflation and a stagnant housing market have weighed on consumers' spending on home improvement projects and "big ticket" items in recent quarters. “The main thing is just this uncertainty that’s holding them back for taking on large projects,” CEO Ted Decker said during the company’s earning call, according to a transcript provided by AlphaSense.

Why This New Is Significant

The comments from Home Depot executives could be taken as a concerning signal of uncertainty and worries about rising costs among consumers, though the retailer's sales and profits topped Wall Street analysts' estimates.

Home Depot on Tuesday posted first-quarter adjusted earnings of $3.43 per share on a 4.8% year-over-year rise in revenue to $41.77 billion, better than the adjusted EPS of $3.40 on revenue of $41.63 billion analysts had called for. Home Depot's comparable store sales growth of 0.6% was just below the 0.8% mark analysts were expecting.

JPMorgan analysts noted that sales for Home Depot's Pro segment were positive in the quarter while DIY sales were negative. Both Home Depot and rival Lowe's (LOW) have worked to increase their sales to professional contractors to offset a sluggish home improvement market.

Home Depot shares were up less than 1% in recent trading. They've lost close to 13% since the start of the year.

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