Home Depot (HD) Q4 2025 earnings
Home Depot Tuesday saw a nearly 4% decline in quarterly sales as the real estate market remained sluggish and homeowners’ selective spending continued to weigh on home improvement demand.
The company also stuck to the current fiscal year forecast it shared at its investor day in December. It said it expects total sales growth for the full year to range from about 2.5% to 4.5%, and that adjusted earnings per share will remain roughly flat, rising up to 4% from $14.69 in the previous fiscal year. Full-year comparable sales growth, which excludes one-time factors such as store openings and closings, is expected to range from flat to 2%.
Despite a sales decline in the fourth quarter, Home Depot beat Wall Street’s revenue and earnings expectations for the period.
In an interview with CNBC, Chief Financial Officer Richard McPhail said U.S. consumers and the company “have been in a frozen housing environment for three years” with no meaningful thaw.
“What we’ve seen as additional pressure over the last year has been this increase in consumer uncertainty and the gradual decline in consumer confidence,” he said. “And these are the signs we’re watching for.”
He said customers have told the company they are concerned about housing affordability and job losses, dynamics that have colored Home Depot’s outlook this year.
Here’s how Home Depot reports for the fourth fiscal quarter of 2025 compared to Wall Street’s estimates, according to a survey of analysts by LSEG.
- earnings per share: $2.72 vs expected $2.54
- Revenues: $38.20 billion, expected $38.12 billion
Shares rose nearly 3% in premarket trading Tuesday as Home Depot beat earnings expectations after missing estimates for three straight quarters.
High interest rates, low housing turnover and economic uncertainty have challenged the company as homeowners delay pricier projects, often spurred on by buying or selling homes.
As it waited for business to rebound, the Atlanta-based retailer laid off 800 employees and announced a five-day-a-week return to the office policy in late January.
But some investors predict a turning point could come for Home Depot as mortgage interest rates slow slightly. The average rate on a 30-year fixed mortgage fell to 5.99% on Monday, its lowest level since 2022, according to Mortgage News Daily.
Spring, Home Depot’s best-selling season, is also upon us.
Home Depot’s business has been relatively stable throughout the year, including the fourth quarter, when it adapted to storms, McPhail said. He said the company is gaining market share even though the industry is lagging behind.
For the three months ended Feb. 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 a year ago.
Revenue was down from $39.70 billion in the same period a year ago. The company said some of the decline was due to the fiscal 2025 latest being one week less. The additional week in fiscal 2024 added $2.5 billion to sales.
Comparable sales, an industry measure also called same-store sales, rose 0.4% across the business and 0.3% in the U.S. in the fourth fiscal quarter.
Across Home Depot’s website and stores, in-store transactions this quarter were down 1.6% year over year, but the average ticket was up 2.4% year over year. Big-ticket purchases, which the company defines as tickets over $1,000, were 1.3% higher than the same period last year.
Some of these larger orders may reflect higher prices. McPhail said Home Depot has experienced “modest” price increases but declined to say which products and categories are costing customers more.
Higher tariffs have been one of the forces driving price increases at retailers, including Home Depot. Companies now face a new landscape for import taxes after the Supreme Court ruled Friday that some of the Trump administration’s tariffs are illegal. Immediately following the decision, President Donald Trump said at a press conference that he would impose alternative tariffs and proposed an overall global tariff that he has since set at 15%.
He said Home Depot was “still in the middle of our analysis” following the Supreme Court decision and the latest proposed tariffs.
“Not all information has been released at this time. Not all statements regarding what has been released are final,” he said. He added that Home Depot is “as well positioned as anyone to understand and manage any impacts.”
More than half of the products Home Depot sells come from the United States, according to the company. McPhail said he has diversified his imports so that no country outside the United States represents more than 10% of the company’s purchases.
Although do-it-yourself buyers have diminished, the company still has a more stable business segment.
Growing business from 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, landscaping and pool professionals, for $18.25 billion in 2024, and acquired specialty building products distributor GMS last year for about $4.3 billion.
McPhail said professional sales were stronger than do-it-yourself sales in the fourth quarter but declined to share specific numbers.
Home Depot opened 12 stores in fiscal 2025 and plans to open 15 more this fiscal year.
The company also announced Tuesday that its board of directors increased its quarterly dividend by 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 were up about 10% year to date. That compares with the S&P 500’s gain of about 14% last year and roughly flat performance year-to-date.
