Home Depot Earnings Beat Sales Estimates

Home Depot earnings showed sales lifted by pro demand and the GMS acquisition while EPS trailed, prompting traders to reassess exposure to organic growth.

November 18, 2025·2 min read
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Flat vector of a hardware store merging with a construction tool to symbolize Home Depot earnings after the GMS acquisition.

KEY TAKEAWAYS

  • Following the filing, net sales were $41.4B, up 2.8%, and beat analyst estimates.
  • Approximately $900M from the GMS acquisition lifted results while comparable sales rose 0.2%.
  • Diluted EPS was $3.62 and trailed consensus, while full-year sales-growth guidance remained about 3%.

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Home Depot earnings on Nov. 18, 2025, showed sales gains driven by professional contractors and the recent GMS acquisition, while diluted earnings per share fell short of some analyst forecasts. The company maintained its full-year sales-growth guidance.

Quarter Results and Estimates

Home Depot Inc. reported third-quarter fiscal 2025 net sales of $41.4 billion, a 2.8% year-over-year increase that surpassed analyst revenue estimates of $41.0 billion. Comparable sales rose 0.2%, while diluted earnings per share were $3.62, below the $3.81 consensus. The company said total sales included about $900 million from the recent acquisition of GMS Inc., representing roughly eight weeks of sales in the quarter.

The contrast between the revenue beat and the EPS shortfall highlights investor focus on whether revenue gains will persist once the acquisition’s effects normalize. The modest same-store sales growth adds to questions about underlying organic momentum.

Acquisition Impact and Outlook

Home Depot reaffirmed its full-year fiscal 2025 sales-growth guidance at approximately 3%, reflecting continued strength in the professional segment, ongoing softness in do-it-yourself activity, and the expected full-year impact of the GMS acquisition. The company left its guidance for comparable sales and EPS unchanged as it incorporated the acquisition into its outlook.

The results depict a company offsetting weak DIY trends with a stronger professional customer base and acquisition-driven revenue growth. This mix of acquisition-fueled sales gains, muted comparable sales, and an EPS miss will draw scrutiny to the pace of organic growth and earnings quality as the integration progresses and the company cycles the deal in future quarters.

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