Home Depot Q4 revenue falls 3.8% to $38.2B; EPS tops by 7.8%
Home Depot’s Q4 revenue declined 3.8% year over year to $38.2 billion, matching analyst projections, while adjusted EPS of $2.72 topped estimates by 7.8%. Operating margin narrowed to 10.1% from 11.3% and free cash flow margin dropped to 6%.
1. Q4 CY2025 Financial Results
Home Depot reported Q4 revenue of $38.2 billion, down 3.8% year on year and in line with the $38.13 billion consensus. Non-GAAP EPS came in at $2.72, a 7.8% beat over the $2.52 estimate, driven by cost controls and pricing actions.
2. Margin Performance
Operating margin contracted to 10.1% from 11.3% a year earlier as gross margin pressures and higher operating expenses weighed on profitability. Free cash flow margin also declined to 6% from 9%, reflecting slower working capital conversion.
3. Store Count and Same-Store Sales
The retailer ended the quarter with 2,359 stores, adding 12 locations year over year, while same-store sales were flat, signaling stable demand at existing outlets without meaningful organic growth.