Home Depot (NYSE:HD) Issues Quarterly Earnings Results

Home Depot (NYSE:HD) announced its earnings results on Tuesday. The home improvement retailer reported $2.72 earnings per share for the quarter, topping analysts’ consensus estimates of $2.52 by $0.20, FiscalAI reports. The firm had revenue of $38.20 billion for the quarter, compared to the consensus estimate of $38.01 billion. Home Depot had a return on equity of 134.32% and a net margin of 8.60%.The company’s revenue was down 3.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $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 Price Performance

Home Depot stock opened at $375.45 on Thursday. The firm has a market capitalization of $373.77 billion, a P/E ratio of 26.38, a PEG ratio of 13.83 and a beta of 1.08. Home Depot has a one year low of $326.31 and a one year high of $426.75. The company has a debt-to-equity ratio of 3.62, a current ratio of 1.06 and a quick ratio of 0.29. The business has a fifty day moving average price of $370.65 and a 200-day moving average price of $380.09.

Home Depot Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Shareholders of record on Thursday, March 12th will be given a dividend of $2.33 per share. This is an increase from Home Depot’s previous quarterly dividend of $2.30. This represents a $9.32 annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Thursday, March 12th. Home Depot’s dividend payout ratio (DPR) is currently 62.71%.

Insider Activity at Home Depot

In related news, EVP Angie Brown sold 1,946 shares of the stock in a transaction dated Friday, December 12th. The stock was sold at an average price of $357.63, for a total transaction of $695,947.98. Following the sale, the executive vice president owned 3,941 shares of the company’s stock, valued at approximately $1,409,419.83. This represents a 33.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Teresa Wynn Roseborough sold 2,872 shares of Home Depot stock in a transaction dated Friday, December 26th. The shares were sold at an average price of $348.52, for a total value of $1,000,949.44. Following the transaction, the executive vice president directly owned 13,196 shares of the company’s stock, valued at $4,599,069.92. The trade was a 17.87% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 4,963 shares of company stock worth $1,748,845. 0.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of HD. Advocate Investing Services LLC purchased a new stake in Home Depot in the fourth quarter valued at approximately $25,000. Parvin Asset Management LLC raised its position 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 valued at $26,000 after buying an additional 33 shares in the last quarter. Imprint Wealth LLC bought a new stake in shares of Home Depot during the 3rd quarter worth $34,000. Triumph Capital Management purchased a new position in Home Depot in the third quarter worth $40,000. Finally, Binnacle Investments Inc grew 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 worth $52,000 after acquiring an additional 32 shares in the last quarter. Hedge funds and other institutional investors own 70.86% of the company’s stock.

More Home Depot News

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

• Positive Sentiment: Multiple analyst upgrades and price-target raises lift the outlook for HD — several firms raised targets this week (UBS, Morgan Stanley, Guggenheim, Telsey, Wells Fargo, DA Davidson and others), signaling buy-side confidence after HD’s Q4 beat. See a sample analyst note. UBS Forecast Guggenheim PT
• Positive Sentiment: Q4 beat and dividend bump — HD topped EPS and revenue estimates, reported improving comp trends and raised the quarterly dividend 1.3%, which supports income-focused holders and signals cash‑flow confidence. (Earnings coverage widely published.)
• Positive Sentiment: Pro (contractor/B2B) strength and margin execution — management highlighted professional customers and margin resilience as offsetting weaker DIY demand, a structural benefit if the Pro mix continues to rise.
• Neutral Sentiment: Institutional accumulation and falling short interest — short interest fell ~15% in February and institutional flows show mixed but overall accumulation, which can reduce downside pressure but also limit sharp rallies in the near term.
• Neutral Sentiment: Analyst divergence on valuation — while many firms raised targets, a few (e.g., Goldman modestly trimmed its target) reflect differing views on recovery timing; consensus price-target range is wide. Example updates collected here. BNP Paribas Exane
• Negative Sentiment: Conservative FY2026 guidance and housing headwinds — management guided to modest sales and EPS growth (flat to low-single-digit comps and modest sales growth), signaling a slow recovery tied to mortgage rates and housing turnover; that cautious outlook is weighing on sentiment. Coverage of the guidance and housing commentary: QuiverQuant on outlook jitters
• Negative Sentiment: Market reaction amplified by peer caution — cautious guidance from Lowe’s and comments about a “frozen” housing market reignited sector fears, prompting profit‑taking despite HD’s beat. Read peer/CEO caution. Fortune: CEO comments
• Negative Sentiment: Sales decline and margin pressure in Q4 — revenue was down year‑over‑year and management noted margin pressures; some analysts and commentators flagged HD’s premium valuation relative to the modest growth outlook. See analysis. Zacks on sales miss

Wall Street Analysts Forecast Growth

HD has been the subject of several research analyst reports. Royal Bank Of Canada raised their target price on Home Depot from $363.00 to $377.00 and gave the company a “sector perform” rating in a research report on Wednesday. Sanford C. Bernstein raised their price objective on shares of Home Depot from $381.00 to $390.00 and gave the stock a “market perform” rating in a report on Wednesday. HSBC dropped their target price on shares of Home Depot from $445.00 to $400.00 and set a “hold” rating on the stock in a research note on Wednesday, November 19th. Morgan Stanley raised their price target on shares of Home Depot from $412.00 to $420.00 and gave the stock an “overweight” rating in a research note on Wednesday. Finally, Daiwa Securities Group upped their price objective on Home Depot from $348.00 to $360.00 and gave the company a “neutral” rating in a research note on Tuesday, December 16th. Twenty equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Home Depot presently has a consensus rating of “Moderate Buy” and a consensus target price of $414.97.

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.