Home Depot (HD) Q4 2025 Earnings

Home Depot On Tuesday, it reported a quarterly decline in sales of nearly 4%, as a sluggish real estate market and selective spending by homeowners continued to weigh on demand for home improvements.

The company also stuck to the current fiscal year outlook it shared in December at Investor Day. It said it expects full-year total sales growth to be between about 2.5% and 4.5% and adjusted earnings per share to be roughly flat and up 4% from $14.69 in the previous fiscal year. It expects full-year comparable sales growth, which takes in one-time factors such as store openings and closings, to range from flat to 2%.

Despite declining sales in the fourth quarter, Home Depot beat Wall Street’s revenue and profit expectations for the period.

In an interview with CNBC, CFO Richard McPhail said that American consumers and the company “have been in a residential freeze for three years” — and there has been no measurable thaw.

“What we have seen as additional pressure over the past year is this increase in consumer uncertainty, and the gradual decline in consumer confidence,” he said. “And these are the signs we are seeing.”

He said customers told the company they were concerned about housing affordability and job losses, dynamics that colored Home Depot’s outlook for the year.

Here’s what Home Depot reported for its fiscal fourth quarter of 2025 compared to Wall Street estimates, according to a survey of analysts conducted by LSEG:

• Earnings per share: $2.72 revised vs. $2.54 expected
• profit: $38.20 billion compared to $38.12 billion expected

Home Depot beat earnings expectations after beating estimates for three straight quarters.

Rising interest rates, low housing turnover and economic uncertainty have challenged the company, as homeowners delay more expensive projects that would typically be spurred by the purchase or sale of a home.

As the Atlanta-based retailer waits for business to pick up, it laid off 800 employees and announced a five-day-a-week return-to-the-office policy in late January.

However, some investors expect there to be an inflection point coming for Home Depot, as mortgage rates moderate a bit. The average interest rate on a 30-year fixed mortgage fell to 5.99% on Monday, matching its lowest level since 2022, according to Mortgage News Daily.

Home Depot’s biggest selling season, spring, is also coming.

Home Depot’s business has been relatively stable throughout the year, including the fourth quarter, when adjusting for the storms, McPhail said. He said the company is gaining market share, even as the sector lags.

In the three-month period ended February 1, Home Depot’s net income fell to $2.57 billion, or $2.58 per share, from $3.0 billion, or $3.02 per share, in the same period last year.

Revenues decreased from $39.70 billion in the same period last year. The company said some of the decline was due to the most recent fiscal year, 2025, having a shorter week. The additional week in fiscal year 2024 contributed to achieving sales of $2.5 billion.

Comparable sales, an industry measure also called same-store sales, rose 0.4% in the fiscal fourth quarter across the business and 0.3% in the U.S.

Store transactions in the quarter across Home Depot’s website and stores were down 1.6% year over year, but the average ticket was up 2.4% year over year. Large ticket purchases, which the company defines as those over $1,000, were 1.3% higher than the same period last year.

Some of these larger orders may reflect higher prices. Home Depot has seen “modest” price increases, McPhail said, though he declined to specify which items and categories now cost customers more.

High tariffs were one of the forces driving up prices at retailers, including Home Depot. Businesses now face a new import tariff landscape after the Supreme Court ruled Friday that some tariffs imposed by the Trump administration are illegal. Shortly after the ruling, President Donald Trump said at a news conference that he would pursue alternative tariffs and proposed a comprehensive global tariff that he has since set at 15%.

Home Depot is “still in the middle of our analysis” after the Supreme Court ruling and the recent proposed tariffs, he said.

He added: “Not all of the information is available now. Not all of the language is final about what has been announced.” He added that Home Depot is “as well positioned as anyone to understand and manage through any impacts.”

According to the company, more than half of what Home Depot sells comes from the United States. McPhail said it is working to diversify its imports, so that no country outside the United States represents more than 10% of the company’s purchases.

Although do-it-yourself buyers have reduced their numbers, the company still has a more stable business segment.

A growing business of home professionals, such as contractors and roofers, has boosted Home Depot’s overall business. It acquired SRS Distribution, a company that sells supplies to roofing, landscape and pool professionals, for about $18.25 billion last year in 2024, and bought GMS, a specialty building products distributor, for about $4.3 billion last year.

MacPhail said professional sales were stronger than DIY sales during the fourth quarter, though he declined to share specific numbers.

Home Depot opened 12 stores in fiscal 2025 and plans to open an additional 15 stores this fiscal year.

The company also announced Tuesday that its board of directors raised its quarterly dividend 1.3%, or 3 cents, to $2.33 per share. It will be paid next month.

As of Monday’s close, Home Depot shares were down about 2% over the past year, but are up about 10% so far. This compares to the S&P 500’s roughly 14% gain over the past year and its nearly flat performance so far.