The Home Depot, Inc. (NYSE: HD) — Company Research

Last Updated: 18 May 2026

The Home Depot is the world's largest home improvement retailer by net sales. The FY2025 print (52 weeks ended 1 February 2026) shows net sales of $164.683 bn, operating income of $20.890 bn, net earnings of $14.156 bn and diluted EPS of $14.23 — revenue up 3.2% YoY, EPS down 4.6%. Per the FY2025 10-K (Item 7, filed 2026-03-18): the SRS (acquired June 2024) and GMS (closed 4 September 2025) acquisitions contributed approximately $6.3 bn of incremental net sales in FY2025, helping the company through a year management describes as constrained by a "persisting high interest rate environment" and historically low housing turnover. The stock prints at $297.51 (18 May 2026 data window), touching the 52-week low of $296.88 during the session, ahead of Q1 FY2026 results due 19 May 2026.

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1. Company Snapshot

| Field | Value | |---|---| | Name | The Home Depot, Inc. | | Ticker | HD (NYSE) | | Sector / Industry | Consumer Cyclical / Home Improvement Retail | | Country / HQ | United States — 2455 Paces Ferry Road, Atlanta, Georgia | | Website | https://www.homedepot.com | | Market cap | $296.33 bn | | Share price | $297.51 (18 May 2026 data window) | | 52-week range | $296.88 – $426.75 | | FY2025 net sales | $164.683 bn | | FY2025 net earnings | $14.156 bn | | FY2025 diluted EPS | $14.23 | | FY2025 free cash flow | $12.646 bn | | Stores at end of FY2025 (per the FY2025 10-K, Item 1, filed 2026-03-18) | 2,359 | | SRS/GMS locations at end of FY2025 (per the FY2025 10-K, Item 1, filed 2026-03-18) | over 1,250 | | Employees | 472,400 | | CEO | Edward P. Decker | | Next earnings | 19 May 2026 (Q1 FY2026) | | Ex-dividend / pay date | 12 March 2026 / 26 March 2026 | | Dividend yield | 3.13% | | Beta | 0.999 |

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2. Bull Case vs Bear Case

Bull case (factual distillation): - Per the FY2025 10-K (Item 7, filed 2026-03-18): comparable sales returned to growth at +0.3% in FY2025 after −1.8% in FY2024 and −3.2% in FY2023 — the first positive comp year since FY2022 — driven by a +1.4% increase in comparable average ticket. - The SRS+GMS Pro-distribution franchise is now a material contributor: per the FY2025 10-K (Item 7, filed 2026-03-18), the two acquisitions contributed ~$6.3 bn of incremental net sales in FY2025, and SRS (including GMS) operates over 1,250 specialty branches across the US and Canada (per the FY2025 10-K, Item 1, filed 2026-03-18). - Cash generation remains strong: $16.325 bn operating cash flow and $12.646 bn free cash flow in FY2025 (JSON), funding $9.152 bn of dividends with room to spare. - ROIC of 25.7% in FY2025 per the FY2025 10-K (Item 7, filed 2026-03-18) — depressed from 31.3% in FY2024 and 36.7% in FY2023 but still well above the firm's cost of capital, despite the equity base widening because share buybacks have been paused. - Per the FY2025 10-K (Item 7, filed 2026-03-18): tariff-related cost pressure in fiscal 2025 was effectively mitigated through supply-chain diversification, selective price increases, scale and vendor relationships, with management saying the company is "well positioned" to absorb tariffs as currently in effect.

Bear case (factual distillation): - Headline earnings are still going the wrong way: net income of $14.156 bn in FY2025 is below $14.806 bn in FY2024 and $15.143 bn in FY2023 (JSON); diluted EPS of $14.23 is below $14.91 and $15.11. Per the FY2025 10-K (Item 7, filed 2026-03-18): approximately $0.30 of the FY2024 EPS came from the 53rd-week effect, so the underlying YoY EPS decline net of the calendar effect is closer to −2.5%. - Operating margin compressed: per the FY2025 10-K (Item 7, filed 2026-03-18), operating income of $20.890 bn was 12.7% of net sales in FY2025, down from 13.5% in FY2024 and 14.2% in FY2023; SG&A rose 60 bps to 18.6% of sales, attributed to higher payroll and a non-recurring legal-related benefit in the FY2024 comparator. - Per the FY2025 10-K (Item 1A, filed 2026-03-18): the company explicitly flags adverse housing/home-improvement conditions, the "persisting high interest rate environment", and historically low housing turnover as ongoing demand headwinds. - Capital return is one-legged. Per the FY2025 10-K (Item 7, filed 2026-03-18): share repurchases were paused in March 2024 to fund the SRS acquisition and the company "do[es] not have plans to resume share repurchases in fiscal 2026 as we seek to reduce our outstanding debt." JSON shows $0 of buybacks in FY2025 versus $7.951 bn in FY2023. - Balance-sheet leverage has widened. JSON: total debt $65.350 bn vs $50.364 bn at FY2022 end, against equity of just $12.813 bn — debt-to-equity 5.10x. Interest expense rose to $2.412 bn in FY2025. - Per the FY2025 10-K (Item 7, filed 2026-03-18): inventory turnover slowed to 4.4x in FY2025 from 4.7x in FY2024, "primarily driven by higher average inventory levels".

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3. What Does This Company Actually Do?

Per the FY2025 10-K (Item 1, filed 2026-03-18): The Home Depot is the world's largest home improvement retailer by net sales for fiscal 2025, selling building materials, home improvement products, lawn and garden products, décor products and facilities MRO products in stores and online, alongside installation services and tool and equipment rental. At the end of fiscal 2025 the company operated 2,359 stores throughout the US (including Puerto Rico, the US Virgin Islands and Guam), Canada and Mexico. Stores average approximately 104,000 sq ft of enclosed space plus ~24,000 sq ft of outside garden area.

Per the FY2025 10-K (Item 1, filed 2026-03-18): the geographic operating segments (US, Canada, Mexico) are aggregated into a single reportable segment (the "Primary segment"). SRS — acquired in fiscal 2024 and including GMS following its 4 September 2025 close — is organised into four operating (non-reportable) segments: roofing and building products; interior and construction products; landscape; and pool. SRS plus GMS operated over 1,250 locations throughout the US and Canada at fiscal year-end.

Per the FY2025 10-K (Item 1, filed 2026-03-18): a typical Home Depot store stocks approximately 30,000–40,000 items during the year across 16 merchandising departments (Appliances, Bath, Building Materials, Electrical, Flooring, Hardware, Indoor Garden, Kitchen & Blinds, Lighting, Lumber, Millwork, Outdoor Garden, Paint, Plumbing, Power, and Storage & Organization). Online represents 15.9% of net sales in FY2025 (up 8.7% YoY, or +10.4% on a comparable-week basis); approximately 50% of US online orders were fulfilled through a store.

Customer mix splits into three groups (per the FY2025 10-K, Item 1, filed 2026-03-18):

• DIY — homeowners completing their own projects.
• DIFM (do-it-for-me) — homeowners who hire Pros to complete projects.
• Pros — professional renovators/remodelers, general contractors, homebuilders, maintenance professionals, property managers, trade specialists (electricians, plumbers, painters, roofers, landscapers, pool contractors, etc.). The MRO business inside this group is operated primarily through HD Supply.

Headline FY2025 sales drivers (per the FY2025 10-K, Item 7, filed 2026-03-18): comparable customer transactions −1.0%, comparable average ticket +1.4%, total comparable sales +0.3%. Customer transactions of 1,601.5 m and average ticket of $90.56 (HD Supply and SRS/GMS excluded from these comp measures). Eleven of sixteen merchandising departments inside the Primary segment posted positive comp sales for FY2025 (Storage & Organization, Electrical, Bath, Plumbing, Indoor Garden, Outdoor Garden, Kitchen & Blinds, Hardware, Power, Building Materials and Appliances).

Per the FY2025 10-K (Item 7, filed 2026-03-18): a stronger US dollar reduced fiscal 2025 net sales by approximately $307 million versus fiscal 2024.

Because Home Depot reports a single Primary segment (the SRS lines are operating but not reportable) and no segment net-sales percentage splits are quoted in the source materials, no Revenue Mix Donut visualisation is constructed.

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4. The Business Model

Home Depot is a high-volume, big-box retailer with two reinforcing motors: (i) a dense store-and-distribution network that physically handles tens of thousands of SKUs, including bulky items, and (ii) a digital and Pro-services overlay that turns those stores into local fulfillment hubs.

Unit economics (JSON, FY2025). Gross margin 33.32% ($54.865 bn gross profit on $164.683 bn revenue), operating margin 12.68%, net margin 8.60%. Per the FY2025 10-K (Item 7, filed 2026-03-18): gross profit margin of 33.3% in FY2025 compares to 33.4% in FY2024 — the small contraction reflects the inclusion of SRS and GMS (lower-gross-margin distribution businesses), partially offset by lower shrink and supply chain benefits in the Primary segment.

SG&A leverage. Per the FY2025 10-K (Item 7, filed 2026-03-18): SG&A rose $2.0 bn (+6.8%) to $30.702 bn (18.6% of net sales) in FY2025, up from 18.0% in FY2024 — driven by higher payroll and related costs plus the absence of a non-recurring legal-related benefit recognised in FY2024. Depreciation and amortisation rose $239 m (+7.9%) to $3.273 bn (2.0% of sales), reflecting intangible amortisation from SRS and GMS.

Capital allocation hierarchy (per the FY2025 10-K, Item 1, filed 2026-03-18). First, reinvest in the business; second, pay a quarterly dividend; third, return excess cash through share repurchases. In FY2025 the company invested $3.7 bn of capex, returned $9.2 bn in dividends, and paid no share repurchases. In February 2026 the quarterly dividend was raised 1.3% to $2.33 per share (per the FY2025 10-K, Item 7, filed 2026-03-18) — the company's first dividend increase since the 2.2% raise to $2.30 in February 2025.

Pro and interconnected investments. Per the FY2025 10-K (Item 1, filed 2026-03-18): differentiated Pro investments include a dedicated sales force, broad Pro-focused assortments, an extensive delivery network, the Pro Xtra loyalty program, the Pro Trade Credit program, and project planning and management tools. Customer-facing AI tools include Magic Apron (product and project Q&A) and Blueprint Takeoffs / Material List Builder (project-specific materials lists and quotes). Sidekick directs store associates to product replenishment opportunities via hdPhone handheld devices.

Real estate footprint. Per the FY2025 10-K (Item 7, filed 2026-03-18): aggregate remaining lease payment obligations were $15.9 bn at 1 February 2026, including approximately $675 m of obligations relating to leases not yet commenced. Per the FY2025 10-K (Item 1, filed 2026-03-18): in fiscal 2023 the company initiated a five-year plan to open approximately 80 new stores; in FY2025 it opened 12 (10 US, 2 Mexico), bringing the total to 2,359; the program is expected to complete in fiscal 2027, after which the company plans 15–20 new stores per year.

Subsidy / regulatory-credit dependency. The Home Depot's revenue model is not dependent on tax credits or regulatory credits — no such line is disclosed in the source data. Per the FY2025 10-K (Item 7, filed 2026-03-18): the One Big Beautiful Bill Act (signed 4 July 2025) reduced FY2025 cash tax payments via 100% expensing of qualified property and immediate expensing of domestic research and experimental expenditures, but this is a timing effect on cash taxes, not a structural revenue subsidy. The effective income tax rate was 23.9% in FY2025 versus 23.7% in FY2024.

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5. Financial Health

Annual P&L and balance sheet (USD millions; JSON):

| FY end | Revenue | Op. income | Net income | Diluted EPS | OCF | FCF | Total debt | Cash | Total equity | Buybacks | Dividends paid | |---|--:|--:|--:|--:|--:|--:|--:|--:|--:|--:|--:| | 2023-01-31 (FY22) | 157,403 | 24,039 | 17,105 | $16.69 | 14,615 | 11,496 | 50,364 | 2,757 | 1,562 | 6,696 | 7,789 | | 2024-01-31 (FY23) | 152,669 | 21,689 | 15,143 | $15.11 | 21,172 | 17,946 | 52,243 | 3,760 | 1,044 | 7,951 | 8,383 | | 2025-01-31 (FY24) | 159,514 | 21,526 | 14,806 | $14.91 | 19,810 | 16,325 | 62,290 | 1,659 | 6,640 | 649 | 8,929 | | 2026-01-31 (FY25) | 164,683 | 20,890 | 14,156 | $14.23 | 16,325 | 12,646 | 65,350 | 1,389 | 12,813 | 0 | 9,152 |

FY2021 (FYE 2022-01-31) rows are null in the source data — JSON does not populate that fiscal year.

Per the FY2025 10-K (Item 7, filed 2026-03-18): fiscal 2025 and fiscal 2023 each include 52 weeks; fiscal 2024 includes 53 weeks. The 53rd week contributed approximately $2.5 bn in net sales and approximately $0.30 in diluted EPS for fiscal 2024.

Per the FY2025 10-K (Item 7, filed 2026-03-18): ROIC was 25.7% in fiscal 2025, 31.3% in fiscal 2024 and 36.7% in fiscal 2023; the FY2025 decline was "primarily driven by higher average equity due to our ongoing pause in share repurchases and higher average long-term debt largely due to the financing of the SRS acquisition."

Quarterly trend — five quarters available in JSON:

| Fiscal quarter end | Revenue (USDm) | Gross profit (USDm) | Gross margin | Operating income (USDm) | Net income (USDm) | Diluted EPS | |---|--:|--:|--:|--:|--:|--:| | 2025-01-31 (Q4 FY24) | 39,704 | 13,034 | 32.8% | 4,495 | 2,997 | $3.02 | | 2025-04-30 (Q1 FY25) | 39,856 | 13,459 | 33.8% | 5,133 | 3,433 | $3.45 | | 2025-07-31 (Q2 FY25) | 45,277 | 15,125 | 33.4% | 6,555 | 4,551 | $4.58 | | 2025-10-31 (Q3 FY25) | 41,352 | 13,815 | 33.4% | 5,353 | 3,601 | $3.62 | | 2026-01-31 (Q4 FY25) | 38,198 | 12,466 | 32.6% | 3,849 | 2,571 | $2.58 |

Q2 is the company's seasonal peak — per the FY2025 10-K (Item 1, filed 2026-03-18): "our highest volume of sales occurs in our second fiscal quarter, as we move into the spring season." That shape is visible in the JSON: Q2 FY25 revenue of $45.277 bn versus Q4 FY25 of $38.198 bn.

```svg

HD quarterly revenue ($bn, bars) vs gross margin (%, line) 50 40 30 0

$39.7 Q4 FY24

$39.9 Q1 FY25

$45.3 Q2 FY25

$41.4 Q3 FY25

$38.2 Q4 FY25

32.8% 33.8% 33.4% 33.4% 32.6% ```

Cash, debt and liquidity (JSON + per the FY2025 10-K, Item 7, filed 2026-03-18):

• FY2025 operating cash flow $16.325 bn (down from $19.810 bn in FY2024) — per the FY2025 10-K (Item 7, filed 2026-03-18), the $3.5 bn decline was "primarily due to changes in working capital", including timing of vendor payments, increased inventories, and the deferral of the Q4 FY2024 estimated federal tax payment into Q1 FY2025.
• Capital expenditures $3.7 bn in FY2025; planned $4 bn for FY2026 (≈2.5% of projected fiscal 2026 net sales) per the FY2025 10-K (Item 7, filed 2026-03-18).
• Cash and cash equivalents $1.389 bn at year-end (JSON); per the FY2025 10-K (Item 7, filed 2026-03-18): of $1.4 bn in cash, approximately $1.0 bn was held by foreign subsidiaries.
• Senior notes outstanding $48.8 bn at 1 February 2026 (per the FY2025 10-K, Item 7, filed 2026-03-18), with $4.6 bn payable within 12 months and $25.4 bn of future interest payments based on current rates.
• Commercial paper program of $11.0 bn at year-end (expanded by $4.0 bn in July 2025 in connection with the GMS financing); $4.5 bn outstanding at a 3.7% weighted average rate at 1 February 2026 (per the FY2025 10-K, Item 7, filed 2026-03-18).
• Aggregate remaining operating and finance lease payments of $15.9 bn ($2.2 bn within 12 months); purchase obligations of $1.9 bn ($1.2 bn within 12 months) (per the FY2025 10-K, Item 7, filed 2026-03-18).
• Share repurchase authorisation: $15.0 bn (approved August 2023), with approximately $11.7 bn remaining at 1 February 2026 — but per the FY2025 10-K (Item 7, filed 2026-03-18) repurchases were paused in March 2024 for the SRS deal and the company does "not have plans to resume share repurchases in fiscal 2026 as we seek to reduce our outstanding debt."

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6. Valuation & Market Data

All figures from the 18 May 2026 data snapshot (JSON):

| Metric | Value | |---|---| | Last price | $297.51 | | Previous close | $304.35 | | Day range | $296.89 – $302.90 | | Day open | $300.31 | | 52-week high / low | $426.75 / $296.88 | | Volume (session) | 5,965,503 | | 10-day average volume | 5,356,180 | | Market cap | $296.33 bn | | Enterprise value | $360.84 bn | | Shares outstanding | 996,027,658 | | Float | 994,368,047 | | P/E trailing (calc: price ÷ latest diluted EPS) | 20.91x | | P/E trailing (yfinance feed) | 20.92x | | P/E forward (yfinance feed) | 18.24x | | P/B (market cap ÷ total equity) | 23.13x | | P/S trailing (market cap ÷ latest revenue) | 1.80x | | EV / Revenue | 2.19x | | EV / Operating income (EBITDA proxy; JSON note: "D&A unavailable; conservative proxy") | 17.27x | | FCF yield (latest FCF ÷ market cap) | 4.27% | | Gross margin (FY2025) | 33.32% | | Operating margin (FY2025) | 12.68% | | Net margin (FY2025) | 8.60% | | ROE | 110.48% — distorted by a small book equity base (equity $12.813 bn; large buybacks before the FY2024 pause shrank equity) | | ROA | 13.47% | | Debt / Equity | 5.10x | | Current ratio | 1.06x | | Dividend yield | 3.13% | | Beta | 0.999 |

Short interest, days-to-cover and put/call ratios are not disclosed in this report's source data.

No analyst price targets or buy/sell/hold opinions are included in this report by editorial rule.

Note on equity-base distortion: per the FY2025 10-K (Item 7, filed 2026-03-18), reported equity has rebuilt from $1.044 bn at FY2023 year-end to $12.813 bn at FY2025 year-end as repurchases were paused — JSON's ROE figure of 110.48% reflects the FY2025 closing equity divided into net income; on a normal-equity-base measure the company's invested-capital return is better captured by ROIC of 25.7% reported in the 10-K.

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7. What Are They Building / What's Coming?

Per the FY2025 10-K (Item 1 and Item 7, filed 2026-03-18) — the company's articulated investments and pipeline:

• GMS acquisition (closed 4 September 2025). Per the FY2025 10-K (Item 7, filed 2026-03-18): cash tender offer at $110 per share completed on 4 September 2025; aggregate cash consideration approximately $5.5 bn including repayment of certain GMS debt; financed in part with approximately $2.0 bn of commercial paper subsequently repaid via a September 2025 $2.0 bn senior notes issuance. GMS distributes drywall, ceilings, steel framing and complementary construction products; following the acquisition SRS is organised into four operating segments — roofing and building products; interior and construction products; landscape; pool.
• New stores. Per the FY2025 10-K (Item 1, filed 2026-03-18): the company opened 12 stores in FY2025 (10 US, 2 Mexico); the ~80-store plan launched in FY2023 is expected to complete in fiscal 2027, after which the run-rate is expected to be 15–20 new stores per year.
• Supply chain investment. Per the FY2025 10-K (Item 1, filed 2026-03-18): the supply-chain build-out is "now largely complete"; current focus is the FDC Relay delivery method which "leverages our existing FDCs to enhance our performance in our current FDC markets and broadens our reach across a greater number of markets", plus continued mechanisation of the rapid deployment center (RDC) network.
• AI-powered customer and associate tools. Per the FY2025 10-K (Item 1, filed 2026-03-18): Magic Apron (AI customer/associate Q&A on online product and project inquiries); Blueprint Takeoffs Tool and Material List Builder (project-specific materials lists and quotes); Sidekick (directs associates to bays where product is low or out of stock via the hdPhone handheld device); and Computer Vision systems for on-shelf availability.
• Pro ecosystem. Per the FY2025 10-K (Item 1, filed 2026-03-18): differentiated capabilities include a dedicated Pro sales force, Pro Xtra loyalty, the Pro Trade Credit program, more convenient showroom space and locations, differentiated fulfillment options and preferred pricing. The MRO offering for multifamily, hospitality, healthcare and government housing facilities is provided primarily through HD Supply.
• Intellectual property. Per the FY2025 10-K (Item 1, filed 2026-03-18): the company maintains patent portfolios across operations, retail services and products; proprietary brands include HDX, Husky, Hampton Bay, Home Decorators Collection, Glacier Bay, Vigoro, Everbilt and Lifeproof.
• Capex plan. Per the FY2025 10-K (Item 7, filed 2026-03-18): approximately $4 bn of FY2026 capex (≈2.5% of projected net sales), targeted at new and existing stores, the interconnected experience, and Pro investments.
• Recent product expansion in retail aisles (per recent news). Per Simply Wall St., 18 May 2026: DuraSack announced earlier in May 2026 that its reusable Moving Bags would roll out to more than 1,900 Home Depot stores nationwide (https://finance.yahoo.com/markets/stocks/articles/durasack-store-rollout-privacy-activism-012147366.html).

Custom-silicon, supercomputing or data-centre programmes are not disclosed in this report's source data — Home Depot is not an AI-infrastructure issuer.

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8. Competitive Landscape

Per the FY2025 10-K (Item 1, filed 2026-03-18): "our industry is highly competitive, highly fragmented, and evolving … we face competition for customers for our products and services from a variety of retailers (including those operating reseller marketplaces), suppliers, service providers, distributors and manufacturers." Stated competitors range from brick-and-mortar, multichannel and online-only retailers, to local/regional/national hardware stores; electrical, plumbing and building-materials supply houses; lumber yards; specialty design stores and showrooms; discount and warehouse-club retailers; paint stores; specialty and mass digital retailers; MRO distributors; wholesale supply distributors; home décor retailers; and providers of home improvement services and tool/equipment rental. Per the FY2025 10-K (Item 1, filed 2026-03-18): the company competes "primarily based on customer experience; price; quality; product availability, assortment, and innovation; and delivery options and capabilities."

The most directly comparable peers (compiled from the 10-K's description of competitor types):

| Domain | Representative competitors | |---|---| | Big-box home improvement | Lowe's Companies (LOW), Menards (private) | | Specialty trade distribution | Builders FirstSource (BLDR), Beacon Roofing Supply, Pool Corporation (POOL), Ferguson Enterprises (FERG) | | Hardware co-ops and regional chains | Ace Hardware (private), True Value (private), Do it Best (private) | | Specialty flooring & décor | Floor & Decor (FND), Lumber Liquidators / LL Flooring, Tile Shop (TTSH) | | MRO distribution (HD Supply head-to-head) | W.W. Grainger (GWW), Fastenal (FAST), MSC Industrial Direct (MSM) | | Paint specialty | Sherwin-Williams (SHW), PPG Industries (PPG) | | Online generalists | Amazon (AMZN), Walmart.com (WMT), Wayfair (W) |

Named market-share percentages for any of these competitor sets are not disclosed in this report's source data — Home Depot itself states it is "the world's largest home improvement retailer based on net sales for fiscal 2025" (per the FY2025 10-K, Item 1, filed 2026-03-18) without quantifying share. Because fewer than three competitors have a named share %, no Competitor Share visualisation is constructed under the source-of-truth rules.

Seasonality (per the FY2025 10-K, Item 1, filed 2026-03-18): "Our business is subject to seasonal influences. Generally, our highest volume of sales occurs in our second fiscal quarter, as we move into the spring season." This pattern is corroborated by the quarterly JSON figures shown in Section 5.

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9. Leadership and Ownership

Named executive officers (per the JSON insider records — positions only):

| Executive | Position | |---|---| | Edward P. Decker | Chief Executive Officer | | Richard V. McPhail | Chief Financial Officer | | Ann-Marie Campbell | Officer (per JSON) | | Teresa Wynn Roseborough | General Counsel | | Angie Brown | Chief Technology Officer | | Kimberly R. Scardino | Officer (per JSON) | | William D. Bastek | Officer (per JSON) | | Jordan Broggi | Officer (per JSON) | | Michael F. Rowe | Officer (per JSON) | | Stephanie Smith | Officer (per JSON) |

CEO start date, tenure, age and detailed prior-role biographies are not populated in this report's source data — readers requiring authoritative biographical detail should consult the 2026 Proxy Statement (DEF 14A) filed 7 April 2026 at https://www.sec.gov/Archives/edgar/data/354950/000035495026000090/hd-20260406.htm.

Top institutional holders (JSON):

| Holder | Shares | % held | Reported value | As of | |---|--:|--:|--:|---| | BlackRock Inc. | 78,661,037 | 7.90% | $23.40 bn | 31 Mar 2026 | | Vanguard Capital Management LLC | 64,687,996 | 6.49% | $19.25 bn | 31 Mar 2026 | | State Street Corporation | 46,925,342 | 4.71% | $13.96 bn | 31 Dec 2025 | | Vanguard Portfolio Management LLC | 25,277,177 | 2.54% | $7.52 bn | 31 Mar 2026 | | Geode Capital Management, LLC | 23,756,142 | 2.39% | $7.07 bn | 31 Dec 2025 | | Morgan Stanley | 22,113,754 | 2.22% | $6.58 bn | 31 Dec 2025 | | Capital World Investors | 16,143,812 | 1.62% | $4.80 bn | 31 Mar 2026 | | Bank of America Corporation | 16,063,532 | 1.61% | $4.78 bn | 31 Dec 2025 | | Charles Schwab Investment Management, Inc. | 15,471,132 | 1.55% | $4.60 bn | 31 Dec 2025 | | Capital Research Global Investors | 14,986,308 | 1.50% | $4.46 bn | 31 Mar 2026 |

Top-10 institutional holdings sum to approximately 32.5% of shares outstanding — a heavily index-owned ownership profile, as expected for an S&P 500 / Dow constituent.

Recent insider transactions reported in JSON (all dated 25 March 2026):

| Insider | Position | Date | Shares | Transaction code | Reported value | |---|---|---|--:|---|--:| | Decker, Edward P. | CEO | 25 Mar 2026 | 11,548 | not disclosed in JSON | not disclosed in JSON | | Campbell, Ann-Marie | Officer | 25 Mar 2026 | 4,691 | not disclosed in JSON | not disclosed in JSON | | McPhail, Richard V. | CFO | 25 Mar 2026 | 3,969 | not disclosed in JSON | not disclosed in JSON | | Bastek, William D. | Officer | 25 Mar 2026 | 3,518 | not disclosed in JSON | not disclosed in JSON | | Broggi, Jordan | Officer | 25 Mar 2026 | 3,022 | not disclosed in JSON | not disclosed in JSON | | Roseborough, Teresa Wynn | General Counsel | 25 Mar 2026 | 2,440 | not disclosed in JSON | not disclosed in JSON | | Smith, Stephanie | Officer | 25 Mar 2026 | 2,345 | not disclosed in JSON | not disclosed in JSON | | Rowe, Michael F. | Officer | 25 Mar 2026 | 2,255 | not disclosed in JSON | not disclosed in JSON | | Brown, Angie | CTO | 25 Mar 2026 | 2,255 | not disclosed in JSON | not disclosed in JSON | | Scardino, Kimberly R. | Officer | 25 Mar 2026 | 902 | not disclosed in JSON | not disclosed in JSON |

The transaction direction (buy / sell / award / vest), the open-market vs 10b5-1 characterisation, and the dollar value are not populated in the source data — JSON returns the type field as empty and the value field as 0 for every row. The 25 March 2026 cluster involving ten officers on the same day is most consistent with a routine annual equity-award delivery or vesting event rather than discretionary trading, but readers should consult the corresponding Form 4 filings on EDGAR for the authoritative characterisation.

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10. Risks and Challenges

Per the FY2025 10-K (Item 1A, filed 2026-03-18), Item 1A is organised into three categories: Strategic Risks; Operational Risks; and Market, Legal, Financial, Regulatory and Other External Risks. Among the principal factors flagged (selective, not exhaustive — readers needing the full enumerated list should consult the 10-K directly at https://www.sec.gov/Archives/edgar/data/354950/000162828026019436/hd-20260201.htm):

Demand / macro risks (per the FY2025 10-K, Item 1A, filed 2026-03-18): - Adverse housing and home-improvement conditions, economic conditions, the political/social climate and public-health issues. The filing notes that "the high interest rate environment that persisted throughout fiscal 2025 and the significant increase in home prices in recent years have impacted housing affordability. Together, these factors have contributed to historically low levels of housing turnover, which has reduced demand for projects and other purchases associated with buying and selling a home." - Inflation/deflation of commodity and other prices affecting prices, demand, sales and margins. - Pro-customer credit risk: per the FY2025 10-K (Item 1A, filed 2026-03-18), specialty trade and MRO customers "increasingly use trade credit to finance their purchases … if these customers are unable to repay the trade credit invoice, we may face greater default risk."

Strategic / execution risks: - Strong competition could affect prices, demand and market share (per the FY2025 10-K, Item 1A, filed 2026-03-18): "online and other digital capabilities, as well as AI tools, facilitate competitive entry, price transparency, and comparison shopping, increasing the level of competition we face." - Execution of interconnected initiatives may not deliver anticipated benefits and could disrupt operations. Per the FY2025 10-K (Item 1A, filed 2026-03-18): "we have an aging store base that requires maintenance, investment, and space reallocation initiatives." - Strategic-transaction risk (SRS, GMS): integration risk, failure to realise synergies, complexity in operations and systems.

Operational risks: - Technology infrastructure failures — per the FY2025 10-K (Item 1A, filed 2026-03-18): the company faces increased volumes, "cybersecurity incidents or attacks", IT outages, and other interruptions that could harm operations. - Supply chain disruption — per the FY2025 10-K (Item 1A, filed 2026-03-18): cybersecurity incidents, weather, natural disasters, international trade disputes, trade-policy changes and import/export-related restrictions are flagged. - Privacy and cybersecurity — per the FY2025 10-K (Item 1A, filed 2026-03-18): "the regulatory environment related to data privacy, cybersecurity, and AI and other emerging technologies is constantly changing, with new and increasingly rigorous requirements applicable to our business … private litigation resulting from such matters is increasing and resulting in progressively larger judgments and settlements." - Talent — attracting, developing and retaining ~472,400 associates while controlling labor costs (per the FY2025 10-K, Item 1A, filed 2026-03-18).

Market, legal, regulatory and external risks: - Tariffs and trade policy. Per the FY2025 10-K (Item 7, filed 2026-03-18): the company experienced "increased costs as a result of tariffs in fiscal 2025"; the FY2025 result reflects mitigation actions including diversification and selective price increases. The filing also references "the recent U.S. Supreme Court decision that struck down tariffs imposed under the International Emergency Economic Powers Act" and management says trade-policy developments "continue to evolve, we cannot predict with certainty their ultimate impact on our business in future periods." - Cost of doing business — new federal/state/local/international laws, executive orders and minimum-wage legislation (per the FY2025 10-K, Item 1A, filed 2026-03-18). - Climate change — physical risks (extreme weather) and transition risks (regulatory or technology changes). Per the FY2025 10-K (Item 1A, filed 2026-03-18): "the potential long-term impacts of climate change … could be widespread and unpredictable." - Insurance / casualty losses not fully covered.

Capital structure risks (JSON + 10-K): - Total debt of $65.350 bn against equity of $12.813 bn — debt/equity 5.10x; long-term debt of $46.341 bn (JSON). Interest expense rose to $2.412 bn in FY2025 from $2.321 bn in FY2024 and $1.943 bn in FY2023. - Per the FY2025 10-K (Item 7, filed 2026-03-18): the company "do[es] not have plans to resume share repurchases in fiscal 2026 as we seek to reduce our outstanding debt" — a clear signal that incremental capital return is paused pending balance-sheet de-leverage. - Pro-customer concentration risk inside SRS and HD Supply — trade-credit default exposure noted above.

Reader note. Item 1A in this 10-K extract is flagged clean (not stub or bloat) — no risk content is being suppressed. Where this section paraphrases the filing the page text has been retained verbatim per Rule C.

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11. Recent Developments

Last 48 hours (16–18 May 2026):

• 18 May 2026 (01:21 UTC) — Simply Wall St.: "How Do DuraSack's Store Rollout and Privacy Activism Reframe Home Depot's (HD) Risk-Reward Story?" — DuraSack's reusable Moving Bags rolling out to more than 1,900 Home Depot stores; investors and activists also pressing the company on data privacy, social policy risk reporting and customer surveillance practices ahead of the 19 May Q1 earnings release. https://finance.yahoo.com/markets/stocks/articles/durasack-store-rollout-privacy-activism-012147366.html
• 18 May 2026 (00:18 UTC) — 24/7 Wall St.: "Whirlpool's CEO Warns Consumer Spending Today Looks Like the 2008 Financial Crisis" — sector context; Whirlpool CEO Marc Bitzer comparing current industry decline to the global financial crisis. Not a Home Depot corporate event but relevant to housing/appliances demand discussion. https://247wallst.com/investing/2026/05/17/whirlpools-ceo-warns-consumer-spending-today-looks-like-the-2008-financial-crisis/
• 17 May 2026 (18:00 UTC) — Barron's: "Home Sales, Nvidia, Walmart, Home Depot, Target, and More to Watch This Week" — earnings-week preview placing Home Depot on the calendar alongside Walmart, Target, Deere, Toll Brothers and Intuit. https://www.barrons.com/articles/home-sales-nvidia-walmart-home-depot-target-and-more-to-watch-this-week-b3fe60ea?siteid=yhoof2&yptr=yahoo
• 17 May 2026 (17:00 UTC) — Barchart: "NVDA Earnings, Alphabet Conference and Other Can't Miss Items this Week" — broader market-week preview citing Home Depot earnings among the week's notable items. https://www.barchart.com/story/news/1984660/nvda-earnings-alphabet-conference-and-other-can-t-miss-items-this-week
• 17 May 2026 (09:08 UTC) — StockStory: "Tractor Supply and Home Depot Stocks Trade Down, What You Need To Know" — coverage of an intraday drop in retailers after April PPI hit 6% annually, "the highest in over three years", interpreted as accelerating wholesale-cost pressures. https://finance.yahoo.com/markets/stocks/articles/tractor-supply-home-depot-stocks-090855751.html
• 17 May 2026 (04:20 UTC) — Motley Fool: "Home Depot's Next Earnings Report on May 19 Could Send the Stock Soaring. Here's Why." — earnings-preview piece. https://www.fool.com/investing/2026/05/17/home-depots-next-earnings-report-on-may-19-could-s/
• 16 May 2026 (11:00 UTC) — Investopedia: "Here's How Much Traders See Home Depot Stock Moving After Earnings" — options-implied move preview ahead of the 19 May print. https://www.investopedia.com/here-is-how-much-traders-see-home-depot-stock-moving-after-earnings-hd-q1-fy2026-11973656
• 16 May 2026 (10:46 UTC) — Benzinga: "How To Earn $500 A Month From Home Depot Stock Ahead Of Q1 Earnings" — confirms Q1 release on Tuesday 19 May before the opening bell. https://finance.yahoo.com/markets/stocks/articles/earn-500-month-home-depot-104608948.html

Last 6 months — material corporate actions reflected in the FY2025 10-K (Item 7, filed 2026-03-18):

• 4 September 2025: GMS acquisition closed at $110 per share via cash tender offer; aggregate cash consideration approximately $5.5 bn (including repayment of certain GMS debt). GMS became a direct subsidiary of SRS.
• September 2025: $2.0 bn senior notes issuance; proceeds used to repay commercial paper drawn for the GMS deal.
• Fiscal 2025: $5.0 bn of long-term debt repaid; $4.1 bn net proceeds from commercial paper.
• July 2025: Commercial paper program increased by $4.0 bn (to $11.0 bn); new $3.0 bn three-year back-up credit facility and $1.0 bn 364-day facility added.
• May 2025: All three prior back-up credit facilities terminated; new five-year $3.5 bn facility (May 2030 expiry) and 364-day $3.5 bn facility (May 2026 expiry) entered into.
• July 2025 — One Big Beautiful Bill Act: Tax law allowing 100% expensing of qualified property and immediate expensing of domestic R&E expenditures reduced FY2025 cash tax payments (per the FY2025 10-K, Item 7, filed 2026-03-18).
• February 2026: 1.3% quarterly dividend raise from $2.30 to $2.33 per share announced (per the FY2025 10-K, Item 7, filed 2026-03-18).

Where source items contain analyst price targets or buy/sell/hold ratings (e.g., the 14 May 2026 broker rating mentioned in the Insider Monkey article carried in the JSON's recent_news), those specific points are intentionally omitted from this report by editorial rule. The article itself remains in the source link at https://finance.yahoo.com/markets/stocks/articles/home-depot-hd-among-11-100901505.html for readers who wish to see it.

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12. Key Dates Coming Up

| Date | Event | |---|---| | 19 May 2026 | Q1 FY2026 earnings release (before opening bell) | | Fiscal 2027 (~year-end) | Per the FY2025 10-K (Item 1, filed 2026-03-18): expected completion of the ~80-store, five-year new-store program initiated in fiscal 2023, after which the company plans 15–20 new stores per year | | FY2026 (full year) | Per the FY2025 10-K (Item 7, filed 2026-03-18): planned capex of approximately $4 bn (~2.5% of projected net sales) |

The next ex-dividend date in JSON refers to the 12 March 2026 distribution that has already passed; the prospective post-19 May 2026 ex-div timing is not disclosed in this report's source data. Annual general meeting date and product-launch milestones beyond the above are not disclosed in this report's source data.

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Source-of-truth notes

• Primary market and fundamentals data: source-data snapshot generated 18 May 2026 (JSON: yfinance + SEC EDGAR feeds).
• The Home Depot, Inc. fiscal 2025 Annual Report on Form 10-K, filed 18 March 2026 — https://www.sec.gov/Archives/edgar/data/354950/000162828026019436/hd-20260201.htm — Items 1, 1A, 7, 7A and 8 all flagged clean in the extract (no stub or bloat).
• News URLs in Section 11 are taken byte-for-byte from the source-data recent_news records.

Disclaimer: This report is a factual research summary built from primary sources. It contains no analyst opinions, price targets, ratings, or recommendations. Figures should be re-verified against the original filings before any decision. The author is not your financial adviser.