The Home Depot (HD) Q4 2026 earnings summary

Executive summary

• Fiscal 2025 sales reached $164.7 billion, up 3.2% year-over-year, with U.S. comp sales up 0.5%; Q4 sales were $38.2 billion, down 3.8% due to a shorter quarter.

• Adjusted diluted EPS for the year was $14.69, down from $15.24; Q4 adjusted EPS was $2.72, down from $3.13.

• Q4 results were in line with expectations, aided by January storm activity; underlying demand remained stable.

• Customer satisfaction scores improved every quarter, and associate tenure reached its highest since 2017.

• Quarterly dividend increased by 1.3% to $2.33 per share, marking the 156th consecutive quarterly dividend.

Financial highlights

• Q4 gross margin was 32.6%, down 20 bps; annual gross margin was 33.3%, down 10 bps.

• Q4 operating margin was 10.1% (adjusted 10.5%); annual operating margin was 12.7% (adjusted 13.1%).

• Q4 diluted EPS was $2.58, down 14.6%; annual diluted EPS was $14.23, down 4.6%.

• Inventory at year-end was $25.8 billion, up $2.4 billion, mainly due to GMS acquisition.

• Fiscal year comparable sales rose 0.3%; average ticket increased 1.4% while customer transactions fell 2.2%.

Outlook and guidance

• Fiscal 2026 sales growth expected at 2.5%-4.5%, with comp sales flat to 2% growth.

• Adjusted diluted EPS projected to grow flat to 4% year-over-year.

• SRS organic sales expected to grow mid-single digits; 15 new stores and 40-50 SRS locations planned.

• Gross margin expected at 33.1%; operating margin at 12.4%-12.6% (adjusted 12.8%-13%).

• Capital expenditures planned at 2.5% of sales.