Home Depot 4Q Report Shows Decrease in Sales

Home improvement retailer tops Wall Street expectations despite muted performance

Published on Feb. 25, 2026

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Home Depot's fourth-quarter earnings were impacted by ongoing consumer caution in a weak housing market, but the company still managed to top Wall Street expectations. Revenue and comparable store sales declined year-over-year, reflecting a shift in consumer behavior towards smaller home improvement projects.

Why it matters

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

The details

Home Depot reported fourth-quarter earnings of $2.57 billion, or $2.58 per share, compared to $3 billion, or $3.02 per share, a year earlier. Adjusting for one-time items, earnings were $2.72 per share, topping analyst estimates of $2.53 per share. Revenue declined to $38.2 billion from $39.7 billion a year ago, with the extra week in the prior-year period adding about $2.5 billion in sales. Comparable store sales edged up 0.4%, with a 0.3% increase in the U.S. Customer transactions dropped 1.6%, but the average ticket size rose to $91.28 from $89.11 a year earlier.

  • Home Depot's fourth-quarter results are for the period ended February 1, 2026.
  • The company's fiscal year 2024 had an extra week, which added approximately 30 cents per share to the year-ago quarter's earnings.

The players

Home Depot

A major home improvement retailer based in Atlanta, Georgia.

Ted Decker

The chair and CEO of Home Depot.

Neil Saunders

The managing director of GlobalData, a research firm that provided analysis on Home Depot's results.

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What they’re saying

“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, GlobalData (nwaonline.com)

“Our 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, Home Depot (nwaonline.com)

What’s next

Home Depot's guidance for fiscal 2026 calls for adjusted earnings to be approximately flat to up 4% from fiscal 2025's $14.69 per share, with total sales growth of about 2.5% to 4.5% and comparable sales growth to be approximately flat to up 2%.

The takeaway

Home Depot's muted fourth-quarter performance reflects the broader challenges facing the U.S. housing market and consumer spending, with a shift towards smaller home improvement projects. The company's results provide insight into the state of the economy and consumer confidence, which will be closely watched in the coming year.