The Home Depot Inc.

HD
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$38.2B
Q4 FY2025 · -3.8% YoY
TTM ROIC
19%
FY2025 · NOPAT / Invested Capital (NOPAT = Operating Income × (1 − tax rate); Invested Capital = Total Assets − Cash − Non-interest-bearing operating liabilities) · WACC ~7.4% · Moat spread +11.5pp

Financial Snapshot

ticker: HD step: 04 generated: 2026-05-11 source: quick-research

The Home Depot Inc. (HD) — Financial Snapshot

Note: Home Depot's fiscal year ends in late January / early February. FY2025 = Feb 2025 – Jan 2026. SRS Distribution was acquired June 18, 2024; GMS (~$5.5B via SRS) acquired in 2025.

Income Statement Summary

Metric FY2022 FY2023 FY2024 FY2025 YoY (25v24)
Revenue $157.4B $152.7B $159.5B $164.7B +3.2%
Comparable Sales +3.1% -3.2% -1.8% +0.3% +210 bps
Operating Margin 15.3% 14.2% ~13.5% ~12.9% -60 bps
Net Income $17.1B $15.1B $14.8B $14.2B -4.1%
EPS (diluted) $16.69 $15.11 $14.91 $14.23 -4.6%
Adj. EPS (diluted) — — $15.24 $14.69 -3.6%

FY2025 marked the end of eight consecutive quarters of negative comparable sales — Q4 FY2025 turned positive at +0.8%.

Cash Flow & Balance Sheet (FY2025)

Metric Value
Operating Cash Flow $16.3B
Capex $3.7B
Free Cash Flow ~$12.6B
Dividends Paid $9.2B
Long-term Debt ~$53B (post-SRS, post-GMS)
Total Debt ~$53B+

Key Ratios (approximate, May 2026)

  • P/E: ~26x | EV/EBITDA: ~17x | FCF Yield: ~3.4%
  • Revenue Growth (TTM): ~3% | Operating Margin: ~13% | ROIC: ~25.7% (down from 31.3% pre-SRS)
  • Dividend Yield: ~2.5% | Payout Ratio: ~65%

Segment / Customer Mix (FY2025)

  • DIY: ~50% of revenue
  • Pro: ~50% of revenue (and rising mix post-SRS/GMS)
  • Online: ~15% of revenue, growing mid-single-digit
  • Stores: 2,347 (US, Canada, Mexico)

Growth Profile

Home Depot is in the late-stage of a multi-year housing-cycle reset. Comp sales bottomed in FY2023 (-3.2%) and have inflected positive in Q4 FY2025 (+0.8%), signaling the cycle trough is past. The strategic narrative has shifted from "DIY retailer" to "Pro distribution platform" via the $18.3B SRS acquisition and $5.5B GMS bolt-on — these expand Home Depot's reach into roofing, landscape, pool, and commercial drywall/ceilings distribution. ROIC has compressed from ~31% pre-SRS to ~26%, but management argues the Pro distribution platform generates structurally higher long-term IRR than expanding box stores.

Forward Estimates

Consensus FY2026 (Feb 2026 – Jan 2027) revenue: ~$172–175B (+5–6%); FY2026 EPS: ~$15.50 (+5–10%). Operating margin guidance of 13.4% for full-year 2025 implies stabilization rather than recovery to historical 15%+ levels in the near term — a function of SRS mix dilution (lower-margin distribution vs. retail) and ongoing Pro/services investment. Bulls model housing-cycle recovery + SRS synergies driving EPS toward $18 by FY2028; bears focus on continued housing-rate sensitivity and ROIC compression.

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $HD.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
GET /api/v1/research/HD/fundamental$1.00 · Bearer token required
Markdown: /stocks/hd/financials/md · → thesis · → memo