# The Home Depot Inc. (HD) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/HD/thesis · /stocks/HD/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/HD/fundamental

## Navigation

- Overview: /stocks/HD
- Financials (this page): /stocks/HD/financials
- Thesis: /stocks/HD/thesis
- Investment Memo: /stocks/HD/memo
- Coverage universe: /stocks