Revenue growth remains volatile, shifting from a 14.1% expansion in 2024Q4 to a 3.8% contraction in 2025Q4, while operating margins have compressed to 11.9% in 2026Q1.
| Metric | TTM | Feb'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 | Jan'10 | Jan'09 | Jan'08 | Jan'07 | Jan'06 | Jan'05 | Jan'04 | Jan'03 | Jan'02 | Jan'01 | Jan'00 | Jan'99 | Jan'98 | Jan'97 |
|---|
| Sales/Revenue | 166.59B | 164.68B | 159.51B | 152.67B | 157.4B | 151.16B | 132.11B | 110.22B | 108.2B | 100.9B | 94.59B | 88.52B | 83.18B | 78.81B | 74.75B | 70.39B | 68B | 66.18B | 71.29B | 77.35B | 79.02B | 81.51B | 73.09B | 64.82B | 58.25B | 53.55B | 45.74B | 38.43B | 30.22B | 24.16B | 19.54B |
| Revenue Growth % | 4.46% | 3.24% | 4.48% | -3.01% | 4.13% | 14.42% | 19.85% | 1.87% | 7.23% | 6.67% | 6.86% | 6.42% | 5.54% | 5.43% | 6.19% | 3.53% | 2.75% | -7.17% | -7.84% | -2.12% | -3.05% | 11.52% | 12.77% | 11.28% | 8.77% | 17.09% | 19% | 27.18% | 25.1% | 23.65% | 26.28% |
| Cost of Goods Sold | 111.41B | 109.82B | 106.21B | 101.71B | 104.63B | 100.33B | 87.26B | 72.65B | 71.04B | 66.55B | 62.28B | 58.25B | 54.79B | 51.9B | 48.91B | 46.13B | 44.69B | 43.76B | 47.3B | 51.35B | 54.05B | 51.08B | 48.66B | 44.24B | 40.14B | 37.41B | 32.06B | 26.56B | 21.24B | 17.09B | 13.87B |
| COGS % of Revenue | - | 66.68% | 66.58% | 66.62% | 66.47% | 66.37% | 66.05% | 65.91% | 65.66% | 65.95% | 65.84% | 65.81% | 65.87% | 65.85% | 65.43% | 65.53% | 65.73% | 66.13% | 66.35% | 66.39% | 68.4% | 62.67% | 66.58% | 68.25% | 68.91% | 69.85% | 70.09% | 69.11% | 70.29% | 70.76% | 70.99% |
| Gross Profit | 55.19B | 54.87B | 53.31B | 50.96B | 52.78B | 50.83B | 44.85B | 37.57B | 37.16B | 34.36B | 32.31B | 30.27B | 28.39B | 26.91B | 25.84B | 24.26B | 23.3B | 22.41B | 23.99B | 26B | 24.97B | 25.94B | 24.43B | 20.58B | 18.11B | 16.15B | 13.68B | 11.87B | 8.98B | 7.06B | 5.67B |
| Gross Margin % | 33.13% | 33.32% | 33.42% | 33.38% | 33.53% | 33.63% | 33.95% | 34.09% | 34.34% | 34.05% | 34.16% | 34.19% | 34.13% | 34.15% | 34.57% | 34.47% | 34.27% | 33.87% | 33.65% | 33.61% | 31.6% | 31.82% | 33.42% | 31.75% | 31.09% | 30.15% | 29.91% | 30.89% | 29.71% | 29.24% | 29.01% |
| Gross Profit Growth % | - | 2.92% | 4.61% | -3.44% | 3.83% | 13.33% | 19.38% | 1.11% | 8.16% | 6.32% | 6.77% | 6.61% | 5.48% | 4.15% | 6.51% | 4.11% | 3.98% | -6.58% | -7.72% | 4.1% | -3.72% | 6.17% | 18.71% | 13.65% | 12.14% | 18.02% | 15.22% | 32.26% | 27.1% | 24.66% | 26.86% |
| Operating Expenses | 34.45B | 33.98B | 31.78B | 29.27B | 28.74B | 27.79B | 26.57B | 21.73B | 21.63B | 19.68B | 18.89B | 18.49B | 17.92B | 17.75B | 18.08B | 17.6B | 17.46B | 17.61B | 19.63B | 18.75B | 16.11B | 17.96B | 16.5B | 13.73B | 12.28B | 11.21B | 9.49B | 8.08B | 6.32B | 5.05B | 4.13B |
| OpEx % of Revenue | - | 20.63% | 19.92% | 19.17% | 18.26% | 18.39% | 20.12% | 19.71% | 19.99% | 19.5% | 19.97% | 20.89% | 21.54% | 22.52% | 24.18% | 25% | 25.69% | 26.61% | 27.54% | 24.25% | 20.38% | 22.03% | 22.58% | 21.19% | 21.08% | 20.94% | 20.75% | 21.02% | 20.9% | 20.9% | 21.15% |
| Selling, General & Admin | 31.13B | 30.7B | 28.75B | 26.6B | 26.28B | 25.41B | 24.45B | 19.74B | 19.51B | 17.86B | 17.13B | 16.8B | 16.83B | 16.12B | 16.51B | 16.03B | 15.85B | 15.9B | 17.85B | 17.05B | 18.35B | 16.48B | 16.5B | 13.73B | 12.28B | 11.21B | 9.49B | 7.62B | 5.94B | 4.76B | 3.9B |
| SG&A % of Revenue | - | 18.64% | 18.02% | 17.42% | 16.7% | 16.81% | 18.5% | 17.91% | 18.03% | 17.7% | 18.11% | 18.98% | 20.24% | 20.46% | 22.08% | 22.77% | 23.31% | 24.03% | 25.03% | 22.05% | 23.22% | 20.22% | 22.58% | 21.19% | 21.08% | 20.94% | 20.75% | 19.82% | 19.67% | 19.73% | 19.97% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 3.27B | 3.03B | 2.67B | 2.46B | 2.39B | 2.13B | 1.99B | 2.12B | 1.81B | 1.75B | 1.69B | 1.09B | 1.63B | 1.57B | 1.57B | 1.62B | 1.71B | 1.78B | 1.7B | -2.24B | 1.47B | 0 | 0 | 0 | 0 | 0 | 463M | 373M | 283M | 232.3M |
| Operating Income | 20.74B | 20.89B | 21.53B | 21.69B | 24.04B | 23.04B | 18.28B | 15.84B | 15.53B | 14.68B | 13.43B | 11.77B | 10.47B | 9.17B | 7.77B | 6.66B | 5.84B | 4.8B | 4.36B | 7.24B | 8.87B | 9.36B | 7.93B | 6.85B | 5.83B | 4.93B | 4.19B | 3.79B | 2.66B | 2B | 1.53B |
| Operating Margin % | 12.45% | 12.68% | 13.49% | 14.21% | 15.27% | 15.24% | 13.84% | 14.37% | 14.35% | 14.55% | 14.19% | 13.3% | 12.59% | 11.63% | 10.39% | 9.46% | 8.59% | 7.26% | 6.11% | 9.36% | 11.22% | 11.49% | 10.84% | 10.56% | 10.01% | 9.21% | 9.16% | 9.87% | 8.81% | 8.28% | 7.81% |
| Operating Income Growth % | - | -2.95% | -0.75% | -9.78% | 4.34% | 26.05% | 15.37% | 2.02% | 5.78% | 9.34% | 14.04% | 12.47% | 14.22% | 18.03% | 16.59% | 14.08% | 21.57% | 10.19% | -39.81% | -18.32% | -5.31% | 18.13% | 15.78% | 17.43% | 18.21% | 17.68% | 10.43% | 42.62% | 33.05% | 31.06% | 29.33% |
| EBITDA | 23.02B | 24.16B | 25.29B | 24.94B | 27.01B | 25.9B | 20.8B | 18.14B | 17.68B | 16.74B | 15.4B | 13.64B | 12.26B | 10.92B | 9.45B | 8.34B | 7.56B | 6.61B | 6.26B | 9.15B | 10.75B | 10.94B | 9.24B | 7.92B | 6.73B | 5.7B | 4.79B | 4.26B | 3.03B | 2.28B | 1.76B |
| EBITDA Margin % | 13.82% | 14.67% | 15.85% | 16.33% | 17.16% | 17.14% | 15.74% | 16.46% | 16.34% | 16.59% | 16.28% | 15.41% | 14.73% | 13.86% | 12.64% | 11.85% | 11.11% | 9.99% | 8.78% | 11.83% | 13.61% | 13.42% | 12.65% | 12.22% | 11.56% | 10.64% | 10.48% | 11.08% | 10.04% | 9.45% | 9% |
| EBITDA Growth % | -2.23% | -4.45% | 1.41% | -7.69% | 4.29% | 24.55% | 14.65% | 2.58% | 5.61% | 8.72% | 12.93% | 11.28% | 12.19% | 15.59% | 13.27% | 10.4% | 14.34% | 5.56% | -31.56% | -14.92% | -1.74% | 18.36% | 16.7% | 17.66% | 18.21% | 18.86% | 12.54% | 40.34% | 32.9% | 29.84% | 29.18% |
| D&A (Non-Cash Add-back) | 2.28B | 3.27B | 3.76B | 3.25B | 2.98B | 2.86B | 2.52B | 2.3B | 2.15B | 2.06B | 1.97B | 1.86B | 1.79B | 1.76B | 1.68B | 1.68B | 1.72B | 1.81B | 1.9B | 1.91B | 1.89B | 1.58B | 1.32B | 1.08B | 903M | 764M | 601M | 463M | 373M | 283M | 232.3M |
| EBIT | 20.84B | 21.01B | 21.73B | 21.87B | 24.04B | 23.04B | 18.28B | 15.84B | 15.78B | 14.76B | 13.43B | 11.94B | 10.81B | 9.17B | 7.85B | 6.67B | 5.8B | 4.66B | 4.21B | 7.32B | 8.87B | 9.43B | 7.93B | 6.85B | 5.83B | 4.93B | 4.19B | 3.79B | 2.66B | 2B | 1.53B |
| Net Interest Income | -2.3B | -2.27B | -2.12B | -1.76B | -1.56B | -1.3B | -1.3B | -1.13B | -958M | -983M | -936M | -753M | -493M | -699M | -612M | -593M | -515M | -658M | -606M | -622M | -338M | -19M | -14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 110M | 141M | 201M | 178M | 55M | 44M | 47M | 73M | 93M | 74M | 36M | 166M | 337M | 12M | 20M | 13M | 15M | 18M | 18M | 74M | 27M | 62M | 56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.41B | 2.41B | 2.32B | 1.94B | 1.62B | 1.35B | 1.35B | 1.2B | 1.05B | 1.06B | 972M | 919M | 830M | 711M | 632M | 606M | 530M | 676M | 624M | 696M | 365M | 81M | 70M | 3M | 0 | 0 | 0 | 0 | 7M | 118M | 0 |
| Other Income/Expense | -2.3B | -2.29B | -2.12B | -1.76B | -1.56B | -1.3B | -1.3B | -1.13B | -974M | -983M | -936M | -753M | -493M | -699M | -545M | -593M | -566M | -821M | -769M | -622M | -364M | -81M | -14M | -3M | 42M | 25M | 26M | 9M | -7M | -102M | 9M |
| Pretax Income | 18.44B | 18.6B | 19.41B | 19.92B | 22.48B | 21.74B | 16.98B | 14.71B | 14.56B | 13.7B | 12.49B | 11.02B | 9.98B | 8.47B | 7.22B | 6.07B | 5.27B | 3.98B | 3.59B | 6.62B | 8.5B | 9.28B | 7.91B | 6.84B | 5.87B | 4.96B | 4.22B | 3.8B | 2.65B | 1.9B | 1.53B |
| Pretax Margin % | 11.07% | 11.3% | 12.17% | 13.05% | 14.28% | 14.38% | 12.85% | 13.35% | 13.45% | 13.58% | 13.2% | 12.45% | 11.99% | 10.74% | 9.66% | 8.62% | 7.75% | 6.02% | 5.04% | 8.56% | 10.76% | 11.39% | 10.82% | 10.56% | 10.08% | 9.26% | 9.22% | 9.9% | 8.78% | 7.86% | 7.86% |
| Income Tax | 4.42B | 4.45B | 4.6B | 4.78B | 5.37B | 5.3B | 4.11B | 3.47B | 3.44B | 5.07B | 4.53B | 4.01B | 3.63B | 3.08B | 2.69B | 2.19B | 1.94B | 1.36B | 1.28B | 2.41B | 3.24B | 3.44B | 2.91B | 2.54B | 2.21B | 1.91B | 1.64B | 1.48B | 1.04B | 738M | 597M |
| Effective Tax Rate % | 24% | 23.9% | 23.7% | 24% | 23.9% | 24.4% | 24.22% | 23.6% | 23.6% | 37% | 36.3% | 36.4% | 36.4% | 36.4% | 37.2% | 36.01% | 36.7% | 34.2% | 35.6% | 36.4% | 38.06% | 37.1% | 36.79% | 37.1% | 37.6% | 38.59% | 38.8% | 39.01% | 39.19% | 38.88% | 38.9% |
| Net Income | 14.01B | 14.16B | 14.81B | 15.14B | 17.11B | 16.43B | 12.87B | 11.24B | 11.12B | 8.63B | 7.96B | 7.01B | 6.34B | 5.38B | 4.54B | 3.88B | 3.34B | 2.66B | 2.26B | 4.39B | 5.76B | 5.84B | 5B | 4.3B | 3.66B | 3.04B | 2.58B | 2.32B | 1.61B | 1.16B | 937.7M |
| Net Margin % | 8.41% | 8.6% | 9.28% | 9.92% | 10.87% | 10.87% | 9.74% | 10.2% | 10.28% | 8.55% | 8.41% | 7.92% | 7.63% | 6.83% | 6.07% | 5.52% | 4.91% | 4.02% | 3.17% | 5.68% | 7.29% | 7.16% | 6.84% | 6.64% | 6.29% | 5.68% | 5.64% | 6.04% | 5.34% | 4.8% | 4.8% |
| Net Income Growth % | 7.17% | -4.39% | -2.23% | -11.47% | 4.09% | 27.72% | 14.45% | 1.09% | 28.86% | 8.46% | 13.53% | 10.46% | 17.83% | 18.74% | 16.79% | 16.33% | 25.44% | 17.74% | -48.58% | -23.71% | -1.32% | 16.74% | 16.19% | 17.47% | 20.37% | 17.94% | 11.25% | 43.74% | 39.14% | 23.71% | 28.19% |
| Net Income (Continuing) | 14.01B | 14.16B | 14.81B | 15.14B | 17.11B | 16.43B | 12.87B | 11.24B | 11.12B | 8.63B | 7.96B | 7.01B | 6.34B | 5.38B | 4.54B | 3.88B | 3.34B | 2.62B | 2.31B | 4.21B | 5.27B | 5.84B | 5B | 4.3B | 3.66B | 3.04B | 2.58B | 2.32B | 1.61B | 1.16B | 938M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 41M | -52M | 185M | 495M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11M | 10M | 9M | 116M | 97.8M |
| EPS (Diluted) | 14.07 | 14.23 | 14.91 | 15.11 | 16.69 | 15.53 | 11.94 | 10.25 | 9.73 | 7.29 | 6.45 | 5.46 | 4.71 | 3.76 | 3.00 | 2.47 | 2.01 | 1.57 | 1.34 | 2.37 | 2.79 | 2.72 | 2.26 | 1.88 | 1.56 | 1.29 | 1.10 | 1.00 | 0.71 | 0.52 | 0.43 |
| EPS Growth % | 6.99% | -4.56% | -1.32% | -9.47% | 7.47% | 30.07% | 16.49% | 5.34% | 33.47% | 13.02% | 18.13% | 15.92% | 25.27% | 25.33% | 21.46% | 22.89% | 28.03% | 17.16% | -43.46% | -15.05% | 2.57% | 20.35% | 20.21% | 20.51% | 20.93% | 17.27% | 10% | 40.85% | 36.54% | 20.93% | 26.47% |
| EPS (Basic) | - | 14.27 | 14.96 | 15.16 | 16.74 | 15.59 | 11.98 | 10.29 | 9.78 | 7.33 | 6.47 | 5.49 | 4.74 | 3.78 | 3.03 | 2.49 | 2.03 | 1.58 | 1.34 | 2.38 | 2.80 | 2.73 | 2.27 | 1.88 | 1.57 | 1.30 | 1.11 | 1.03 | 0.73 | 0.53 | 0.43 |
| Diluted Shares Outstanding | 996M | 997M | 993M | 1B | 1.02B | 1.06B | 1.08B | 1.1B | 1.14B | 1.18B | 1.23B | 1.28B | 1.35B | 1.43B | 1.51B | 1.57B | 1.66B | 1.69B | 1.69B | 1.86B | 2.06B | 2.15B | 2.22B | 2.29B | 2.34B | 2.35B | 2.35B | 2.34B | 2.27B | 2.23B | 2.18B |
| Basic Shares Outstanding | 994M | 993M | 990M | 999M | 1.02B | 1.05B | 1.07B | 1.09B | 1.14B | 1.18B | 1.23B | 1.28B | 1.34B | 1.43B | 1.5B | 1.56B | 1.65B | 1.68B | 1.68B | 1.85B | 2.05B | 2.14B | 2.21B | 2.28B | 2.34B | 2.33B | 2.31B | 2.24B | 2.21B | 2.19B | 2.18B |
| Dividend Payout Ratio | - | 64.65% | 60.31% | 55.36% | 45.54% | 42.51% | 50.14% | 53% | 42.3% | 48.81% | 42.78% | 43.24% | 39.87% | 41.65% | 38.43% | 42.03% | 47% | 57.31% | 67.3% | 38.89% | - | 14.68% | 14.38% | 13.82% | 13.43% | 13.01% | 14.37% | 10.99% | 10.41% | 11.98% | 11.73% |
Housing market cyclicality
According to the provided quarterly income statements, The Home Depot's revenue growth has exhibited significant volatility, fluctuating from a 14.1% expansion in 2024Q4 to a 3.8% contraction in 2025Q4, suggesting that top-line performance remains highly sensitive to broader macroeconomic shifts and seasonal demand cycles.
The inconsistent revenue trajectory indicates that the company is struggling to maintain organic growth momentum in a high-interest-rate environment. Investors should monitor whether the recent pivot toward professional-grade distribution can effectively offset the cooling demand in discretionary home improvement projects.
As reported in financial statements, operating margins have compressed from a peak of 15.1% in 2024Q2 to 11.9% in 2026Q1, reflecting the ongoing challenge of maintaining profitability while navigating rising labor costs and the integration of lower-margin professional distribution assets into the core retail business.
The contraction in operating margins suggests that the company's fixed-cost base is becoming increasingly difficult to leverage during periods of tepid revenue growth. This trend warrants further investigation into whether the shift toward the 'Complex Pro' segment will permanently dilute the company's historical margin profile.
Based on the reported figures, SG&A expenses have trended upward from $6.7 billion in 2023Q4 to $8.0 billion in 2026Q1, indicating that the company is facing persistent inflationary pressures in its operational overhead that are currently outpacing the growth in gross profit generation.
The rise in SG&A expenses appears to be a structural headwind that limits the company's ability to translate revenue gains into bottom-line growth. Management's expense discipline will be critical to monitor as they continue to invest in the logistics infrastructure required to support their professional-focused growth strategy.
Data from the last ten quarters reveals that EPS has faced consistent downward pressure, with 2026Q1 earnings of $3.30 representing a decline from the $4.60 reported in 2024Q2, despite ongoing share repurchase activity that typically serves to artificially bolster per-share performance metrics for shareholders.
The disconnect between share count reduction and declining EPS suggests that operational performance is deteriorating faster than capital allocation can mask. Investors should be wary of relying on buybacks to drive value when the underlying net income remains under pressure from cyclical headwinds.
While the company maintains a dominant market position, the recent trend of declining net margins, which fell from 10.6% in 2024Q2 to 7.9% in 2026Q1, suggests that the business model may be facing a structural inflection point that threatens its long-term profitability and competitive moat.
Short-sellers may focus on the potential for further margin erosion as the company prioritizes lower-margin professional volume over high-margin DIY retail. The reliance on debt-funded acquisitions to drive growth in a stagnant housing market may also expose the company to significant balance sheet risks if interest rates remain elevated.
Quick answers to the most common questions about buying HD stock.
For fiscal year 2025, The Home Depot, Inc. (HD) reported total revenue of $164.68B. This represents a 743.0% increase compared to $19.54B in 1996.
The Home Depot, Inc. (HD) is profitable, generating $14.16B in net income for the fiscal year ending 2025 with a net profit margin of 8.6%.
The Home Depot, Inc. (HD) reported an operating income of $20.89B, resulting in an operating profit margin of 12.7%. This margin reflects the operational efficiency of the business before interest and taxes.
The Home Depot, Inc. (HD) generated $54.87B in gross profit for the year, representing a gross profit margin of 33.3%. This demonstrates the company's core pricing power and production efficiency.