Home Depot Q4 EPS Tops by $0.20, Net Sales Fall 3.8%
Home Depot reported Q4 fiscal 2025 adjusted EPS of $2.72, beating estimates by $0.20, while net sales fell 3.8% to $38.2B, missing forecasts by $0.1B. Comparable sales rose 0.4% as average ticket climbed 2.4% but transactions dropped 8.5%, pressuring margins.
1. Q4 Fiscal 2025 Results
Home Depot reported adjusted earnings per share of $2.72 in Q4, beating the $2.52 estimate, while net sales declined 3.8% to $38.2 billion, slightly below projections. Comparable sales rose 0.4%, driven by a 2.4% increase in average ticket despite an 8.5% drop in customer transactions.
2. Margins and Expenses
Gross profit fell 4.4% to $12.5 billion, with gross margin contracting 20 basis points to 32.6%. SG&A expenses increased to 20.3% of sales, up 80 basis points, resulting in a 10.5% operating margin, down 120 basis points year over year.
3. Dividend and Balance Sheet
The board approved a 1.3% quarterly dividend increase to $2.33 per share, marking 156 consecutive quarters of payouts. Home Depot ended fiscal 2025 with $1.4 billion in cash and $46.3 billion in long-term debt.
4. Fiscal 2026 Outlook
Management projects fiscal 2026 sales growth of 2.5–4.5% with comparable sales flat to up 2%, a gross margin of 33.1%, and adjusted operating margin of 12.8–13%. EPS is expected to be flat to 4% higher year over year.