TLDR
- Home Depot beat Q4 estimates with adjusted EPS of $2.72 vs. $2.54 expected and revenue of $38.20B vs. $38.12B expected
- Q4 total sales fell 3.8% year-over-year, with $2.5B of the drop explained by one fewer week in the calendar
- Comparable sales increased 0.4% overall and 0.3% in the U.S.
- Board approved a 1.3% dividend increase to $2.33 per share — the 156th consecutive quarterly dividend
- Fiscal 2026 guidance calls for total sales growth of 2.5%–4.5% and adjusted EPS growth of flat to 4%
Home Depot reported Q4 fiscal 2025 earnings on Tuesday, topping Wall Street estimates on both the top and bottom line for the first time in four quarters.
Adjusted EPS landed at $2.72, clearing the $2.54 estimate. Revenue came in at $38.20 billion, ahead of the $38.12 billion forecast.
Total sales dropped 3.8% from the prior year’s $39.70 billion. Around $2.5 billion of that decline traces back to the year-ago quarter having 14 weeks versus 13 this time around.
Comparable sales edged up 0.4% for the overall business and 0.3% in the U.S. Average ticket size rose 2.4% year-over-year, and big-ticket purchases over $1,000 were up 1.3%, though store transactions fell 1.6%.
Net income came in at $2.57 billion, or $2.58 per diluted share, compared to $3.0 billion, or $3.02 per diluted share, in the same period last year.
Three Years in a Housing Freeze
CFO Richard McPhail described the environment plainly: the company has been stuck in a “frozen housing environment for three years.” Low housing turnover and elevated interest rates have kept homeowners from taking on the bigger renovation projects that typically drive Home Depot’s strongest sales.
Consumer confidence has also slipped. McPhail said customers are worried about housing affordability and job losses — concerns that shaped the company’s tone for the year ahead.
There may be some relief in sight. The average 30-year fixed mortgage rate fell to 5.99% on Monday, its lowest point since 2022 per Mortgage News Daily, and spring — Home Depot‘s peak selling season — is right around the corner.
Pro Segment and Acquisitions Fill the Gap
DIY customers have pulled back, but the Pro side of the business has held up better. McPhail confirmed Pro sales outpaced DIY in Q4, without providing specific numbers.
Two acquisitions are supporting that strength: SRS Distribution, picked up for $18.25 billion in 2024, and GMS, a specialty building products distributor acquired for roughly $4.3 billion. Home Depot now runs 2,359 retail stores and more than 1,250 SRS locations.
Dividend Up, Tariff Picture Still Unclear
The board raised the quarterly dividend 1.3% to $2.33 per share, payable March 26, 2026 — the company’s 156th consecutive quarterly dividend.
On tariffs, McPhail said Home Depot is still working through the implications of President Trump’s proposed 15% across-the-board global tariff after the Supreme Court struck down parts of the earlier duties. More than half of what the company sells is sourced domestically, and it is capping any single foreign country at no more than 10% of total purchases.
Fiscal 2026 guidance targets total sales growth of 2.5%–4.5%, comparable sales growth of flat to 2%, and adjusted EPS growth of flat to 4% from a $14.69 base.
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