Home Depot Inc. reported its fourth‑quarter and full fiscal year 2025 results, posting adjusted earnings per share of $2.72—$0.18 above the consensus estimate of $2.54—and revenue of $38.2 billion, slightly above the $38.12 billion forecast. Comparable sales grew 0.4% year‑over‑year, with U.S. comparable sales up 0.3%. The average ticket size increased 2.4%, offsetting a 1.6% decline in customer transaction volume.
The Pro segment, which now accounts for nearly half of total revenue, helped cushion the impact of a weak housing market and lower storm activity in the third quarter. Gross margin fell to 32.6%, a 20‑basis‑point decline from the prior year, while operating margin slipped to 10.1%, a 120‑basis‑point drop. The company noted that the 14‑week calendar year in 2024 added roughly $2.5 billion to that quarter’s sales, partially explaining the year‑over‑year revenue decline of 3.8%.
Compared with the fourth quarter of fiscal year 2024, Home Depot’s revenue fell 3.8% to $38.2 billion, net earnings dropped from $3.0 billion to $2.6 billion, and adjusted diluted EPS fell from $3.13 to $2.72. On a full‑year basis, sales rose 3.2% to $164.7 billion, while adjusted diluted EPS fell from $15.24 to $14.69.
Management guided for fiscal 2026 total sales growth of 2.5% to 4.5% and comparable sales growth of flat to 2.0%. Adjusted diluted EPS is expected to grow flat to 4.0% from $14.69, signaling confidence in a gradual recovery of the home‑improvement market while acknowledging ongoing headwinds such as consumer uncertainty and a soft housing market.
Ted Decker, Chair, President, and Chief Executive Officer, said, "Throughout fiscal 2025, our teams did an incredible job engaging with our customers and growing market share, and I would like to thank them for their hard work and dedication." He added, "For the fourth quarter, our results were largely in line with our expectations, reflecting the lack of storm activity in the third quarter and ongoing consumer uncertainty and pressure in housing. Adjusting for storms, underlying demand was relatively stable throughout the year." The CFO noted, "We are well‑positioned for 2026, with strategic investments in digital and supply chain capabilities."
Investors responded positively to the earnings beat and the company’s forward guidance, reflecting confidence in Home Depot’s ability to navigate current market headwinds while leveraging its Pro segment and digital initiatives.
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