Home Depot Reports Q4 Earnings, Sees Pressure in Housing Market

Home improvement retailer points to stable demand despite ongoing consumer uncertainty

Published on Feb. 27, 2026

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Home Depot reported fiscal 2025 sales of $164.7 billion, up 3.2% from the prior year, as the company pointed to relatively stable underlying demand despite ongoing pressure in housing and continued consumer uncertainty. Comparable sales rose 0.3% for the year, including a 0.5% increase in U.S. comps. Adjusted diluted earnings per share were $14.69, down from $15.24 a year ago.

Why it matters

Home Depot's results provide insights into the state of the home improvement industry and consumer spending amid ongoing economic uncertainty. The company's performance and outlook offer a window into broader trends in housing, consumer confidence, and the health of the U.S. economy.

The details

For the fourth quarter, Home Depot reported total sales of $38.2 billion, down $1.5 billion, or about 3.8%, primarily due to lapping the prior year's 53rd week. Comparable sales increased 0.4% for the quarter, with U.S. comps up 0.3%. Adjusted diluted EPS were $2.72, compared with $3.13 in the prior-year quarter. Regionally, the Northern and Western divisions posted positive comps, while Mexico reported positive comps and Canada posted negative comps. The company said eight of 16 merchandising departments posted positive comps in the fourth quarter, including power, electrical, storage, indoor garden, hardware, plumbing, bath, and kitchen.

  • In the fourth quarter, total company comps were negative 0.2% in November, positive 0.1% in December, and positive 1.3% in January.

The players

Home Depot

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.

Richard McPhail

The Chief Financial Officer of Home Depot.

Billy Bastek

The Executive Vice President of Merchandising at Home Depot.

Ann-Marie Campbell

The Senior Executive Vice President at Home Depot.

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What they’re saying

“Regionally, Decker said the Northern and Western divisions posted positive comps. In local currency, Mexico reported positive comps and Canada posted negative comps.”

— Decker (transcriptdaily.com)

“Bastek attributed ticket growth to 'some price increases,' a mix shift to higher-ticket items, and customers continuing to trade up for innovative products.”

— Billy Bastek, Merchandising EVP (transcriptdaily.com)

“Campbell said customer satisfaction scores increased every quarter in fiscal 2025 and hourly associate tenure is at its highest since 2017.”

— Ann-Marie Campbell, Senior EVP (transcriptdaily.com)

What’s next

Home Depot expects to open about 15 new stores and 40 to 50 new SRS locations in fiscal 2026, with capital expenditures of about 2.5% of sales.

The takeaway

Home Depot's results highlight the ongoing challenges facing the home improvement industry, with housing affordability pressures and consumer uncertainty weighing on demand. However, the company's focus on operational improvements and customer satisfaction suggest it is well-positioned to navigate these headwinds.