Home Depot Tops Q4 Expectations Despite Weak Housing Market

Home improvement retailer sees muted performance amid consumer caution and housing slump

Published on Feb. 24, 2026

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Home Depot reported better-than-expected fourth quarter earnings, but saw revenue decline and customer transactions drop as American consumers pulled back on spending amid a weak housing market and economic uncertainty. The company expects flat to modest growth in the year ahead.

Why it matters

Home Depot's results provide insight into the state of the U.S. housing market and consumer spending habits. As a major home improvement retailer, Home Depot's performance is closely watched as an indicator of broader consumer and housing trends.

The details

Home Depot reported Q4 earnings of $2.57 billion, or $2.58 per share, topping Wall Street expectations. However, revenue fell to $38.2 billion from $39.7 billion a year earlier, with comparable store sales up just 0.4%. Customer transactions dropped 1.6%, though the average ticket size rose. Home Depot cited ongoing consumer uncertainty and pressure in the housing market as factors impacting its performance.

  • Home Depot reported Q4 results for the period ended February 1, 2026.
  • The company expects flat to 4% growth in adjusted earnings per share for fiscal 2026.

The players

Home Depot

A major home improvement retailer based in Atlanta, Georgia.

Ted Decker

Chair and CEO of Home Depot.

Neil Saunders

Managing director of GlobalData, a retail research firm.

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What they’re saying

“Home Depot's quarterly 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.'”

— Ted Decker, Chair and CEO (wral.com)

“The broader truth here is that Home Depot does best for big scale improvement tasks and major DIY jobs and is a major destination for consumers undertaking such work. Unfortunately, the market did not play ball over the final quarter with the number of projects undertaken down by 1.5%, mostly driven by a sharp decline in bigger ticket projects, such as full remodels.”

— Neil Saunders, Managing Director (wral.com)

What’s next

Home Depot expects to provide more details on its outlook and strategy during its upcoming investor conference call.

The takeaway

Home Depot's muted Q4 performance underscores the challenges facing the U.S. housing market and consumer spending, with homeowners pulling back on major home improvement projects. The company's guidance suggests it expects these headwinds to persist in the year ahead.