Home Depot Earnings Point To Positive Outlook

Home Depot earnings showed a mixed fourth quarter, the company said in a Feb. 24, 2026 press release, as sales declined while adjusted EPS beat expectations and management issued fiscal 2026 guidance targeting modest sales and EPS growth amid housing pressures.

Fourth Quarter and Fiscal Results

For the quarter ended Feb. 1, 2026, Home Depot reported net sales of $38.2 billion, down 3.8% year-over-year, reflecting 13 weeks in the period versus 14 a year earlier. Comparable sales rose 0.4%, with U.S. comps up 0.3%. Net earnings fell 14.2% to $2.6 billion, producing diluted EPS of $2.58 and adjusted diluted EPS of $2.72, which beat consensus estimates. Ted Decker, chair, president, and CEO, said, "For the fourth quarter, our results were largely in-line with our expectations."

For fiscal 2025, the company reported net sales of $164.7 billion, up 3.2% from the prior year, with comparable sales up 0.3% and U.S. comps up 0.5%. Net earnings declined 4.4% to $14.2 billion, and diluted EPS fell 4.6% to $14.23. Adjusted diluted EPS was $14.69, down from $15.24 the prior year.

Fiscal 2026 Guidance, Margins, and Capital Returns

Home Depot’s fiscal 2026 guidance calls for total sales growth of approximately 2.5% to 4.5% and comparable sales growth of roughly flat to 2.0%. The plan includes about 15 new stores and projects a gross margin near 33.1%, an operating margin of 12.4% to 12.6%, and an adjusted operating margin of 12.8% to 13.0%. The effective tax rate is expected around 24.3%, with net interest expense near $2.3 billion. The company forecasted diluted EPS growth flat to 4.0% from fiscal 2025’s figure, excluding an estimated 40 basis-point adjusted operating margin impact from acquired intangible-asset amortization.

The board approved a 1.3% quarterly dividend increase to $2.33 per share on Feb. 24, 2026. At year-end, Home Depot operated 2,359 stores and employed more than 470,000 associates. Total assets were $105.1 billion, stockholders’ equity was $12.8 billion, and net cash from operations was $16.3 billion, more than 10% lower than a year earlier.

The adjusted EPS beat, that guidance, and the dividend increase suggest management expects modest top-line and EPS gains while maintaining cash returns to shareholders. The combination of targeted margin improvement, measured new-store growth, and a small dividend raise positions Home Depot to sustain shareholder returns despite ongoing housing-market constraints.