The Home Depot Inc. (NYSE:HD) reported fourth-quarter fiscal 2025 results on Tuesday that exceeded analyst expectations for both revenue and adjusted earnings. Shares rose following the announcement.
Fourth Quarter Results
Fourth-quarter sales were $38.198 billion, a 3.8% year-over-year decrease, but above the $38.119 billion estimate. This quarter included 13 weeks, compared to 14 weeks in the prior year. Comparable sales increased 0.4%, with U.S. comparable sales up 0.3%.
GAAP diluted earnings per share were $2.58, down from $3.02 a year ago. Adjusted diluted earnings per share were $2.72, exceeding the $2.54 estimate but below last year’s $3.13.
Operating income was $3.849 billion, with an operating margin of 10.1%. Adjusted operating margin was 10.5%.
Comparable customer transactions declined 1.6% for the quarter, while the comparable average ticket increased 2.4%. Total customer transactions were 366.5 million, down 8.5%. The average ticket was $91.28, up 2.4%.
Full-Year Performance
For fiscal 2025, sales increased 3.2% to $164.7 billion. Comparable sales rose 0.3%, with U.S. comparable sales up 0.5%. GAAP diluted EPS was $14.23, down from $14.91 in fiscal 2024.
Adjusted diluted EPS was $14.69, compared to $15.24 a year earlier. Operating income was $20.890 billion, with an operating margin of 12.7%. Adjusted operating margin was 13.1%.
Fiscal-year customer transactions totaled 1,601.5 million, a 2.2% decrease. The average ticket increased 1.4% to $90.56.
Cash Flow And Balance Sheet
Operating cash flow for fiscal 2025 was $16.325 billion, down from $19.810 billion in fiscal 2024. Capital expenditures totaled $3.679 billion. Year-end cash and cash equivalents were $1.389 billion.
“Throughout fiscal 2025, our teams did an incredible job engaging with our customers and growing market share, and I would like to thank them for their hard work and dedication,” said Ted Decker, chair, president, and CEO.
“For the fourth quarter, our 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.”
The company raised its quarterly dividend by 1.3% to $2.33 per share, payable on March 26, 2026, to shareholders of record as of March 12, 2026.
Fiscal 2026 Outlook
For fiscal 2026, Home Depot expects total sales growth of 2.5% to 4.5% and comparable sales growth of flat to 2.0%. The company projects GAAP EPS of $14.23 to $14.80, compared to the $14.79 estimate, and adjusted EPS of $14.69 to $15.28, compared to the $15.07 estimate.
Expected sales are $168.800 billion to $172.093 billion, compared to the $171.255 billion estimate.
The company forecasts a gross margin of about 33.1%, an operating margin of 12.4% to 12.6%, and an adjusted operating margin of 12.8% to 13.0%.
It expects an effective tax rate of 24.3%, net interest expense of $2.3 billion, capital expenditures at 2.5% of total sales, and about 15 new stores.
HD Price Action: Home Depot shares were up 2.85% at $387.72 during premarket trading on Tuesday, according to Benzinga Pro data.
Image via Shutterstock
