Home Depot (NYSE:HD) Posts Earnings Results, Beats Expectations By $0.20 EPS

Home Depot (NYSE:HD) announced its earnings results on Tuesday. The home improvement retailer reported $2.72 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.52 by $0.20, FiscalAI reports. The firm had revenue of $38.20 billion for the quarter, compared to analyst estimates of $38.01 billion. Home Depot had a return on equity of 160.74% and a net margin of 8.77%.The business’s revenue was down 3.8% on a year-over-year basis. During the same quarter last year, the firm posted $3.13 EPS. Home Depot updated its FY 2026 guidance to 14.230-14.799 EPS.

Here are the key takeaways from Home Depot’s conference call:

• Fiscal 2025 results showed revenue of $164.7 billion (+3.2%) but pressure on profitability with adjusted diluted EPS down to $14.69 (from $15.24) and Q4 adjusted EPS of $2.72 vs $3.13 a year ago.
• The company affirmed fiscal 2026 guidance targeting total sales growth of ~2.5%–4.5%, comps flat to 2%, and adjusted diluted EPS growth of ~flat to 4%, driven in part by the GMS acquisition, new stores, and SRS expansion.
• Investments in the Pro and interconnected experience are delivering share gains — highlights include AI project takeoffs, trade credit expansion, delivery handhelds, real-time big-and-bulky tracking, and tens of thousands of Pro projects started weekly, with Pro outpacing DIY in Q4.
• Margin and expense pressures persist — Q4 adjusted operating margin narrowed, gross margin modestly down (FY ~33.3%), operating expense as a % of sales rose ~105 bps in Q4, inventory increased ~$2.4 billion (GMS and higher costs), and ROIC declined to ~25.7%.
• Management expects a front?loaded cadence of headwinds in 2026 — first?half gross margin and operating?expense comparisons will be harder (including GMS annualization), with Q1 EPS expected to be mid?single?digit negative year?over?year before improving through the year.

Home Depot Stock Performance

Home Depot stock traded up $12.30 during mid-day trading on Tuesday, reaching $389.29. 2,625,835 shares of the company’s stock were exchanged, compared to its average volume of 4,235,115. Home Depot has a one year low of $326.31 and a one year high of $426.75. The company has a quick ratio of 0.29, a current ratio of 1.05 and a debt-to-equity ratio of 3.82. The business’s fifty day simple moving average is $369.64 and its 200 day simple moving average is $380.14. The firm has a market capitalization of $387.54 billion, a PE ratio of 26.53, a P/E/G ratio of 13.66 and a beta of 1.08.

Key Home Depot News

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Q4 beat on both EPS and revenue — adjusted EPS $2.72 beat consensus and revenue of $38.2B edged past estimates, which is the main driver of the stock strength today. Home Depot Beats Estimates for First Time in a Year as Shares Jump 3.5%
• Positive Sentiment: B2B mix expansion cushions a weak DIY market — management says the pro/B2B business is approaching ~50% of revenue, helping recurring demand even as housing activity slows. Home Depot’s B2B Business Nears 50% of Revenue Amid DIY Slowdown
• Positive Sentiment: Dividend raised and shareholder-friendly actions — the company increased its quarterly dividend (~1.3%), which supports income investors and reduces downside volatility. The Home Depot Announces Fourth Quarter and Fiscal 2025 Results; Increases Quarterly Dividend by 1.3%;Provides Fiscal 2026 Guidance
• Positive Sentiment: Institutional accumulation and favorable analyst tone — MarketBeat and some analysts note continued buying and at least one major shop maintaining a Buy, which supports short?term momentum. Home Depot: Accumulation is Underway for This Dividend Contender
• Neutral Sentiment: FY?2026 guidance reaffirmed but conservative — management gave an EPS range (14.230–14.799) that implies modest growth; the reiteration stabilizes expectations but the midpoint is roughly in line to slightly below consensus. Home Depot Q4 Press Release and FY2026 Guidance
• Negative Sentiment: Sales and profit still down year?over?year — revenue fell ~3.8% vs. prior year and net income contracted, reflecting a soft housing market and weaker big?ticket project activity. That’s a reminder earnings quality must improve to sustain higher valuations. Home Depot Profit Falls As Home Improvement Downturn Continues
• Negative Sentiment: Margin pressure and macro risks persist — management flagged uncertainty (consumer concerns, rates, housing turnover) and reported income contraction and margin headwinds that could cap upside until housing stabilizes. Home Depot Earnings and Analysis

Analyst Ratings Changes

A number of analysts recently weighed in on HD shares. KGI Securities cut shares of Home Depot from an “outperform” rating to a “hold” rating and set a $320.00 price target for the company. in a research report on Wednesday, November 19th. Jefferies Financial Group reaffirmed a “buy” rating and set a $424.00 target price on shares of Home Depot in a report on Wednesday, December 10th. UBS Group set a $430.00 target price on Home Depot in a report on Wednesday, December 10th. Telsey Advisory Group restated an “outperform” rating and set a $410.00 price target on shares of Home Depot in a research report on Wednesday, February 18th. Finally, Zacks Research raised Home Depot from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Twenty-one investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Home Depot has an average rating of “Moderate Buy” and an average price target of $407.63.

Insider Activity at Home Depot

In related news, EVP Angie Brown sold 1,946 shares of the firm’s stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $357.63, for a total transaction of $695,947.98. Following the completion of the transaction, the executive vice president owned 3,941 shares of the company’s stock, valued at $1,409,419.83. This trade represents a 33.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Teresa Wynn Roseborough sold 2,872 shares of the firm’s stock in a transaction dated Friday, December 26th. The shares were sold at an average price of $348.52, for a total transaction of $1,000,949.44. Following the sale, the executive vice president directly owned 13,196 shares in the company, valued at approximately $4,599,069.92. The trade was a 17.87% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 4,963 shares of company stock worth $1,748,845. Corporate insiders own 0.10% of the company’s stock.

Institutional Trading of Home Depot

Institutional investors have recently added to or reduced their stakes in the company. Advocate Investing Services LLC acquired a new stake in shares of Home Depot during the fourth quarter worth $25,000. Parvin Asset Management LLC increased its holdings in shares of Home Depot by 110.0% during the 3rd quarter. Parvin Asset Management LLC now owns 63 shares of the home improvement retailer’s stock worth $26,000 after buying an additional 33 shares during the last quarter. Imprint Wealth LLC purchased a new stake in Home Depot in the 3rd quarter valued at about $34,000. Triumph Capital Management acquired a new stake in Home Depot in the 3rd quarter valued at approximately $40,000. Finally, Binnacle Investments Inc raised its position in Home Depot by 28.8% in the second quarter. Binnacle Investments Inc now owns 143 shares of the home improvement retailer’s stock valued at $52,000 after purchasing an additional 32 shares during the period. Institutional investors own 70.86% of the company’s stock.

About Home Depot

The Home Depot, Inc (NYSE: HD) is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot’s core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.