Home Depot Q4 tops estimates; opening 15 stores in 2026
The Home Depot topped Wall Street estimates for the first time in a year in its fourth quarter, but reported a 3.8% sales decline amid a stalled housing market, ongoing economic uncertainty, high mortgage rates and cautious consumers.
The home improvement giant also raised its quarterly dividend by 1.3%, and provided a full-year fiscal 2026 outlook that was mostly in line with forecasts. The company opened 12 stores in 2025 and plans to open 15 new stores in its current fiscal year.
Home Depot’s net income fell to $2.57 billion, or $2.58 per share, in the quarter ended Feb. 1, from $3.0 billion, or $3.02 per share, in the year-ago period. Adjusted earnings per share were $2.72 adjusted, easily topping analysts’ estimates of $2.54.
Revenue totaled $38.20 billion compared to $39.7 billion in the year-ago quarter, and ahead of analysts estimates of $38.12 billion. (The company noted that the most recent fiscal year 2025 consisted of 52 weeks, while fiscal 2024 had a 53rd week. The additional week in the fourth quarter of 2024 contributed approximately $2.5 billion in sales, which impacts year-over-year comparisons for Q4 and the full year.)
Store transactions fell 1.6% year over year, but the average customer receipt rose 2.4% year over year, to $91.28 from $89.11.
"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,” said Home Depot chair, president and CEO Ted Decker. “Adjusting for storms, underlying demand was relatively stable throughout the year."
Sales for fiscal 2025 rose 3.2% to $164.7 billion. Comparable sales increased 0.3%, and U.S. comparable sales increased 0.5%.
Net earnings were $14.2 billion, or $14.23 per share, compared with net earnings of $14.8 billion, or $14.91 per share in fiscal 2024. Adjusted earnings per share were $14.69, compared with adjusted earnings per share of $15.24 in fiscal 2024.
For its current fiscal year, the company expects total sales to grow 2.5% to 4.5%, and comparable sales to be flat to up 2%. Adjusted earnings per share are expected to be approximately flat to up 4%.
At the end of the fourth quarter, the Home Depot operated a total of 2,359 retail stores and over 1,250 SRS locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico.
