Home Depot (NYSE:HD) Issues Quarterly Earnings Results

Home Depot (NYSE:HD) released its quarterly earnings data 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. Home Depot had a net margin of 8.77% and a return on equity of 160.74%. The company had revenue of $38.20 billion for the quarter, compared to analysts’ expectations of $38.01 billion. During the same quarter last year, the company earned $3.13 earnings per share. The firm’s revenue for the quarter was down 3.8% on a year-over-year basis. 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 Stock Performance

Shares of HD opened at $379.35 on Wednesday. The firm has a market cap of $377.65 billion, a price-to-earnings ratio of 25.79, a PEG ratio of 13.49 and a beta of 1.08. The company has a quick ratio of 0.29, a current ratio of 1.05 and a debt-to-equity ratio of 3.82. The business’s 50 day moving average is $370.27 and its two-hundred day moving average is $380.12. Home Depot has a 52-week low of $326.31 and a 52-week high of $426.75.

Home Depot Increases Dividend

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

Insider Transactions at Home Depot

In related news, EVP Ann Marie Campbell sold 145 shares of the company’s stock in a transaction that occurred on Thursday, December 11th. The stock was sold at an average price of $358.26, for a total transaction of $51,947.70. Following the sale, the executive vice president directly owned 12,320 shares of the company’s stock, valued at approximately $4,413,763.20. This represents a 1.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, 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 in the company, valued at approximately $1,409,419.83. This trade represents a 33.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 4,963 shares of company stock worth $1,748,845. 0.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Home Depot

A number of institutional investors have recently made changes to their positions in HD. Mill Capital Management LLC lifted its stake in Home Depot by 0.4% in the fourth quarter. Mill Capital Management LLC now owns 7,377 shares of the home improvement retailer’s stock worth $2,538,000 after acquiring an additional 27 shares during the last quarter. Jacobi Capital Management LLC raised its holdings in shares of Home Depot by 0.3% in the 4th quarter. Jacobi Capital Management LLC now owns 9,336 shares of the home improvement retailer’s stock valued at $3,213,000 after purchasing an additional 27 shares in the last quarter. Nvest Financial LLC raised its holdings in shares of Home Depot by 4.8% in the 4th quarter. Nvest Financial LLC now owns 610 shares of the home improvement retailer’s stock valued at $210,000 after purchasing an additional 28 shares in the last quarter. WealthCollab LLC grew its stake in shares of Home Depot by 4.1% during the second quarter. WealthCollab LLC now owns 730 shares of the home improvement retailer’s stock worth $268,000 after purchasing an additional 29 shares in the last quarter. Finally, Puff Wealth Management LLC grew its stake in shares of Home Depot by 3.8% during the second quarter. Puff Wealth Management LLC now owns 821 shares of the home improvement retailer’s stock worth $301,000 after purchasing an additional 30 shares in the last quarter. 70.86% of the stock is owned by institutional investors and hedge funds.

Home Depot News Roundup

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

• Positive Sentiment: Q4 earnings and revenue topped expectations (largest EPS beat in many quarters), showing resilient margin execution and improved comps versus recent prints. PR Newswire: Home Depot Q4 results
• Positive Sentiment: Board raised the quarterly dividend by 1.3% to $2.33, supporting income-focused investors and signaling cash-flow confidence. PR Newswire: Dividend increase
• Positive Sentiment: Several sell-side analysts raised price targets and reiterated buy/outperform views after the print (Telsey, DA Davidson, J.P. Morgan commentary), providing uplift to sentiment. The Fly: DA Davidson raises target
• Neutral Sentiment: Management reaffirmed FY2026 EPS guidance (range provided) — the midpoint is close to consensus but guidance is tepid, so it removes some near-term uncertainty without implying strong upside. MarketBeat: Q4 release & guidance
• Neutral Sentiment: Home Depot’s shift toward pro/B2B sales (nearing ~50% of revenue commentary) and digital tools are cited as structural positives that improve earnings quality over time. PYMNTS: B2B momentum
• Negative Sentiment: Sales fell 3.8% Y/Y and management flagged a “frozen” housing market and customers delaying big projects; that weak top-line trend and margin headwinds limit upside. MarketBeat: Sales decline & metrics
• Negative Sentiment: CEO Ted Decker warned customers aren’t investing amid affordability/job worries — a cautionary tone that increases recession/consumer-risk concern for investors. Fortune: CEO warns on customer behavior
• Negative Sentiment: Some analysts and commentators question HD’s premium valuation and urge caution (mixed-quarter narrative — beat on EPS but weaker sales/growth), which may cap multiple expansion. Seeking Alpha: valuation concerns
• Negative Sentiment: High-profile commentators (e.g., Cramer) advised not to buy immediately despite long-term potential, adding short-term selling pressure for some traders. Invezz: Cramer commentary

Wall Street Analyst Weigh In

Several research analysts have commented on the company. Robert W. Baird lifted their price target on Home Depot from $400.00 to $430.00 and gave the stock an “outperform” rating in a research report on Tuesday, February 17th. Citigroup boosted their price objective on shares of Home Depot from $407.00 to $450.00 and gave the company a “buy” rating in a research note on Thursday, February 12th. DZ Bank reissued a “sell” rating on shares of Home Depot in a report on Tuesday, November 18th. Sanford C. Bernstein increased their price objective on Home Depot from $362.00 to $381.00 and gave the stock a “market perform” rating in a research report on Wednesday, February 18th. Finally, Zacks Research raised Home Depot from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Twenty-one equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $414.37.

Home Depot Company Profile

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.