The Home Depot, Inc. (HD) — Company Research
Last Updated: 29 Sep 2026
The Home Depot (NYSE: HD) is the world's largest home-improvement retailer. It sells to do-it-yourself customers and to professional contractors ("Pros") through 2,364 stores in the US, Canada and Mexico and through online channels. Its SRS Distribution arm, which now includes GMS and Mingledorff's, sells specialty trade products through more than 1,340 branch locations.
FY2025 (to 1 Feb 2026) net sales rose 3.2% to $164,683m, helped by acquisitions, but comparable sales grew only 0.3% and adjusted EPS fell to $14.69. Q2 FY2026 sales rose 5.7% with comparable sales up 1.7%, and management reaffirmed full-year guidance. Customer transactions are still falling, debt is about $52.9bn after the SRS and GMS deals, and buybacks remain paused. CEO Ted Decker began a temporary medical leave on 12 Aug 2026.
This refresh draws on Home Depot earnings releases, the FY2025 Form 10-K, the Q2 FY2026 Form 10-Q, SEC XBRL company facts and Form 4 filings, all retrieved on 29 Sep 2026. Follow the price on ChartsView Live Charts.
1. Company Snapshot
| Field | Value |
|---|---|
| Full name | The Home Depot, Inc. |
| Ticker | HD (NYSE) |
| Sector | Consumer & Retail |
| Industry | Home-improvement retail and specialty trade distribution |
| Headquarters | 2455 Paces Ferry Road, Atlanta, Georgia |
| Founded | 1978 (incorporated in Delaware) |
| CEO / Leadership | Ted Decker (Chair, President and CEO), on temporary medical leave since 12 Aug 2026. During his leave, Ann-Marie Campbell (Senior EVP) runs day-to-day operations, Richard McPhail (EVP and CFO) oversees finance and the Pro businesses, and lead director Greg Brenneman chairs the board |
| Market cap | ~$289.2bn (share price $289.89 at the 28 Sep 2026 close) |
| Revenue (FY2025) | $164,683m net sales (+3.2% YoY; comparable sales +0.3%), year to 1 Feb 2026 |
| Net income (FY2025) | $14,156m GAAP, per FY2025 10-K |
| Employees | About 472,400 associates at FY2025 year-end, per FY2025 10-K |
| Locations | 2,364 stores plus more than 1,340 SRS branch locations at 2 Aug 2026 |
| Dividend | $2.33 per quarter ($9.32 annualised), raised 1.3% in Feb 2026 |
2. Bull Case vs Bear Case
Distilled from the full report below. Factual only, no ratings.
Bull Case
- Pro platform built out at scale: SRS ($18.25bn enterprise value, 2024), GMS ($5.5bn, Sep 2025) and Mingledorff's (about $1.1bn, May 2026) give HD more than 1,340 branches. Home Depot puts its total addressable market at $1.2 trillion, about $700bn of it Pro.
- Sales growth has resumed: Q2 FY2026 net sales rose 5.7% to $47,861m, comparable sales rose 1.7% and adjusted EPS was $4.92. Full-year guidance of 2.5–4.5% sales growth was reaffirmed on 18 Aug 2026.
- Strong cash generation and dividend: FY2025 operating cash flow was $16,325m against capex of $3,679m. The dividend is $9.32 a year, a yield of about 3.2%.
- Fulfilment advantage: Nationwide 3-hour Express Delivery now runs from more than 2,000 US stores. Next-day appliance delivery reaches 60% of the US population.
Bear Case
- Customer transactions still falling: Comparable customer transactions fell 1.0% in Q2 FY2026 and 1.2% in H1 FY2026, so growth is coming from a higher average ticket.
- Higher leverage and buybacks paused: Total debt is about $52.9bn against $2.1bn of cash. No shares have been bought back since March 2024, and trailing ROIC fell to 24.8% from 27.2%.
- Housing sensitivity: Big-ticket and project demand depends on housing turnover and mortgage rates, and FY2025 comparable sales grew just 0.3%.
- Leadership uncertainty: The Chair and CEO is on medical leave, with an interim structure in place. This comes as HD reorganises its Pro businesses into a new Office of Pro Acceleration.
3. What Does This Company Actually Do?
Home Depot stores sell building materials, lumber, tools, hardware, garden products, paint, flooring, kitchen and bath fittings and appliances. They also offer installation services and tool and truck rental. Pro customers, such as remodelers, electricians, plumbers and property managers, are served through stores, HD Supply (maintenance, repair and operations products) and the SRS specialty distribution businesses.
| Segment / category | % of revenue | What it is |
|---|---|---|
| Primary segment: Building Materials | 31.8% ($52,439m) | Building materials, electrical, lumber, millwork, plumbing |
| Primary segment: Décor | 31.4% ($51,679m) | Appliances, bath, flooring, kitchen and blinds, lighting, paint |
| Primary segment: Hardlines | 29.1% ($47,848m) | Hardware, indoor and outdoor garden, power tools, storage |
| Other (SRS, including GMS) | 7.7% ($12,717m) | Specialty trade distribution: roofing (53% of Other sales), interior and construction products, landscape and pool supplies |
Shares of FY2025 net sales of $164,683m, per the FY2025 10-K segment and category disclosures. The Primary segment (Home Depot stores and online in the US, Canada and Mexico, plus HD Supply) had FY2025 sales of $151,966m and operating income of $20,574m. The Other segment had sales of $12,717m and operating income of $316m. In Q2 FY2026, Other segment sales rose about 62% to $5,055m after the GMS acquisition.
4. The Business Model
How it makes money. Home Depot buys products in very large volumes and sells them through a dense store network backed by distribution centres and delivery fleets. Its margin comes from purchasing scale, private-label brands and fast inventory turnover. FY2025 operating margin was 12.7% (13.1% adjusted). The Pro business adds repeat, larger-ticket orders through trade credit, delivery to job sites and SRS's branch network.
Where the moat sits. The moat is scale and logistics. HD has more than 2,360 stores, about 1,300 SRS branches, about 325 customer-facing warehouses and about 16,000 delivery assets. Few competitors can match its product range, local availability and delivery speed. Supplier relationships and the Pro Xtra loyalty programme deepen the advantage.
What changed in 2025–2026. HD has pushed into specialty trade distribution to grow with Pros. It bought GMS on 4 Sep 2025 and Mingledorff's (an HVAC distributor) on 11 May 2026. On 30 Jul 2026 it created an Office of Pro Acceleration, led by CFO Richard McPhail, to coordinate Home Depot Pro, HD Supply, SRS and Construction Resources. HD also received about $730m of IEEPA tariff refunds after the Supreme Court struck those tariffs down, and booked about $685m of this against cost of goods sold.
5. Financial Health
Sources: Home Depot quarterly and annual earnings releases (SEC 8-K exhibits), the FY2025 Form 10-K, the Q2 FY2026 Form 10-Q, and SEC XBRL company facts (data.sec.gov) for debt, cash, cash flow, D&A and operating income. Fiscal years end on the Sunday nearest 31 January; FY2024 had 53 weeks.
| Fiscal Year | Revenue ($m) | YoY % | GAAP EPS | Adjusted EPS | Dividend/share | Long-term debt (YE) |
|---|---|---|---|---|---|---|
| FY2021 | $151,157m | +14.4% | $15.53 | $15.53† | $6.60 | $36,604m |
| FY2022 | $157,403m | +4.1% | $16.69 | $16.69† | $7.60 | $41,962m |
| FY2023 | $152,669m | −3.0% | $15.11 | $15.25 | $8.36 | $42,743m |
| FY2024 | $159,514m | +4.5% | $14.91 | $15.24 | $9.00 | $48,485m |
| FY2025 | $164,683m | +3.2% | $14.23 | $14.69 | $9.20 | $46,341m |
† Home Depot did not report adjusted EPS for FY2021 or FY2022; its adjusted measure, which excludes acquired intangible amortisation, began with FY2024 reporting and restated FY2023. GAAP EPS is repeated for those years. The 53-week FY2024 included about $2.5bn of sales and about $0.30 of EPS from the extra week. Dividend/share is dividends per share for the fiscal year. Long-term debt is the noncurrent portion, including finance leases, at year-end. Current installments were a further $4,967m and commercial paper $4,464m at 1 Feb 2026.
Quarterly results (most recent first)
| Quarter / Half | Revenue | Adjusted EPS | GAAP EPS |
|---|---|---|---|
| Q2 FY2026 (to 2 Aug 2026) | $47,861m | $4.92 | $4.79 |
| Q1 FY2026 (to 3 May 2026) | $41,765m | $3.43 | $3.30 |
| Q4 FY2025 (to 1 Feb 2026) | $38,198m | $2.72 | $2.58 |
| Q3 FY2025 (to 2 Nov 2025) | $41,352m | $3.74 | $3.62 |
| H1 FY2025 (Q1 + Q2)‡ | $85,133m | $8.23 | $8.03 |
| FY2025 total | $164,683m | $14.69 | $14.23 |
‡ H1 FY2025 is derived as the FY2025 total less Q3 and Q4, so the EPS figures are approximate. Comparable sales: Q2 FY2026 +1.7%, Q1 FY2026 +0.6%, Q4 FY2025 +0.4%, Q3 FY2025 +0.2%. Q4 FY2025 had 13 weeks against 14 a year earlier.
Cash flow and balance sheet.
- Cash flow (FY2025).
- Operating cash flow was $16,325m and capital expenditure $3,679m, giving free cash flow of $12,646m.
- Depreciation and amortisation was $3,514m, plus $607m of intangible amortisation, a total of $4,121m. Operating income was $20,890m.
- Dividends paid were $9,152m. There were no share repurchases.
- Balance sheet at 2 Aug 2026.
- Cash and cash equivalents were $2,085m.
- Commercial paper was $4,248m, current installments of long-term debt $4,697m and long-term debt $43,951m. Stockholders' equity was $16,617m.
- Goodwill was $22.9bn and intangible assets $10.5bn.
- FY2026 guidance (reaffirmed 18 Aug 2026): sales growth of 2.5–4.5%; comparable sales flat to +2%; about 15 new stores; adjusted operating margin of 12.8–13.0%; net interest expense of about $2.3bn; GAAP and adjusted EPS growth flat to +4%.
6. Valuation & Market Data
Raw metrics, September 2026. Not opinions on whether the stock is cheap or expensive.
| Metric | Value |
|---|---|
| Market cap | ~$289.2bn (share price $289.89 at the 28 Sep 2026 close) |
| Enterprise value | ~$340.0bn. Calculated as market cap ~$289.2bn + total debt ~$52.9bn (commercial paper $4.2bn + current installments $4.7bn + long-term debt $44.0bn) − cash ~$2.1bn, per the 2 Aug 2026 balance sheet |
| Trailing P/E (GAAP) | ~20.3x ($289.89 / TTM GAAP diluted EPS of $14.29, the sum of Q3 FY2025 to Q2 FY2026). On TTM adjusted EPS of $14.81 the multiple is ~19.6x |
| P/E (forward) | ~19.4x ($289.89 / FY2026 adjusted EPS guidance midpoint of ~$14.98, i.e. flat to +4% on $14.69) |
| P/S (TTM) | ~1.71x (market cap / TTM net sales of $169.2bn, Q3 FY2025 to Q2 FY2026) |
| EV/EBITDA (TTM) | ~13.6x (EV ~$340.0bn / FY2025 EBITDA ~$25.0bn). EBITDA = operating income $20.89bn + total depreciation and amortisation $4.12bn (the wider figure, including $607m of intangible amortisation) |
| P/FCF | ~22.9x. Calculated as market cap ~$289.2bn / FCF ~$12.6bn, where FCF = operating CF $16.33bn − capex $3.68bn per the FY2025 cash flow statement |
| 52-week high | $410.95 |
| 52-week low | $289.10 |
| Short interest (% of float) | 1.06% (10.57m shares, settlement date 15 Sep 2026, per MarketBeat) |
| Days to cover | 2.8 (MarketBeat, 15 Sep 2026) |
| Dividend yield | ~3.2% ($9.32 annualised / $289.89) |
Share-price-based metrics use the 28 Sep 2026 close, when the shares traded close to their 52-week low. For live prices see ChartsView Live Charts.
7. What Are They Building
An integrated Pro ecosystem. The Office of Pro Acceleration, set up on 30 Jul 2026, is building three shared capabilities across Home Depot Pro, HD Supply, SRS and Construction Resources:
- customer-relationship tools;
- a product catalogue;
- joined-up fulfilment.
The 10-K also highlights expansion of Pro Trade Credit, preferred pricing and the Pro Xtra loyalty programme.
Faster delivery. On 18 Aug 2026 Home Depot launched nationwide 3-hour Express Delivery from more than 2,000 US stores for a flat fee, with no membership needed. The network also includes:
- flatbed distribution centres;
- a new "FDC Relay" delivery method;
- free same-day delivery on qualifying orders.
New stores. Home Depot plans about 80 new stores over five years, finishing in FY2027, and 15 to 20 a year after that. It opened 12 stores in FY2025 and guides to about 15 in FY2026.
AI and digital tools. The main tools are:
- the Magic Apron AI assistant, expanded with localised in-store guidance across US stores in Aug 2026;
- AI Blueprint Takeoffs and Material List Builder, which help Pros produce materials lists and quotes;
- computer vision to track on-shelf availability;
- the Sidekick associate app.
8. Competitive Landscape
| Peer | Market cap (Sep 2026) | Key 2025 metric |
|---|---|---|
| Lowe's (LOW) | ~$105.3bn | FY2025 revenue $86.29bn (year to Jan 2026); Q2 2026 comparable sales +0.2%. It bought Foundation Building Materials for $8.8bn in Oct 2025 (stockanalysis.com; Lowe's release) |
| Tractor Supply (TSCO) | ~$16.7bn | 2025 revenue $15.52bn; closing 75 Petsense stores (stockanalysis.com) |
| Builders FirstSource (BLDR) | ~$6.2bn | 2025 revenue $15.19bn, −7.4%; removed from the S&P 500 effective 21 Sep 2026 (stockanalysis.com) |
| Floor & Decor (FND) | ~$5.2bn | 2025 revenue $4.68bn; Q2 2026 comparable sales −2.1% (stockanalysis.com) |
Market caps are late-Sep 2026 figures from stockanalysis.com quote pages; the Floor & Decor figure uses the 23 Sep 2026 price.
Where Home Depot competes with each peer:
- DIY customers: Lowe's is the closest competitor. HD also competes with Walmart, Amazon and specialty chains such as Floor & Decor and Tractor Supply.
- Pro customers: HD, through SRS, GMS and HD Supply, competes with Lowe's (now with FBM and Artisan Design Group), Builders FirstSource and specialty distributors.
9. Leadership and Ownership
Ted Decker is Chair, President and CEO. On 12 Aug 2026 Home Depot announced that he was taking a temporary medical leave and was expected back within the next few months. During his absence:
- Senior EVP Ann-Marie Campbell oversees day-to-day operations.
- CFO Richard McPhail oversees financial management and the Pro subsidiaries.
- Lead director Greg Brenneman chairs the board.
All insider transactions found in 2026 were sales, and there were no open-market purchases.
| Name | Date | Type | Shares | Price | Value | Plan Type |
|---|---|---|---|---|---|---|
| Kimberly Scardino (SVP Finance, CAO) | 10 Sep 2026 | Sale | 675 | $305.95 | ~$0.21m | Not marked 10b5-1 on Form 4 |
| Teresa Roseborough (EVP, General Counsel) | 28 Aug 2026 | Sale | 2,455 | $328.77 | ~$0.81m | Not marked 10b5-1 on Form 4 |
| Michael Rowe (EVP, Pro) | 26 Aug 2026 | Sale | 710 | $336.76 | ~$0.24m | Not confirmed |
| Richard McPhail (EVP and CFO) | 19 Aug 2026 | Option exercise ($147.36) and sale | 5,989 | $348.40 | ~$2.09m | Not marked 10b5-1 on Form 4 |
| Richard McPhail (EVP and CFO) | 04 Mar 2026 | Sale | 2,550 | $368.89 | ~$0.94m | Not confirmed |
| John Deaton (EVP, Supply Chain) | 04 Mar 2026 | Sale | 1,793 | $369.00 | ~$0.66m | Not confirmed |
Sources: SEC Form 4 filings via EDGAR and openinsider.com.
10. Risks and Challenges
- Housing and consumer demand (Macro): Home Depot's sales depend on housing turnover, home prices and mortgage rates. Comparable transactions fell 1.0% in Q2 FY2026, and Q3 FY2025 fell short without storm-related demand.
- Leverage and interest cost (Financial): Debt is about $52.9bn against $2.1bn of cash, with FY2026 net interest guided at about $2.3bn. Buybacks have been paused since March 2024, and trailing ROIC fell to 24.8%.
- Tariffs and input costs (Regulatory): Trade policy remains uncertain after the IEEPA ruling. Guidance counts on tariff refunds to partly offset unplanned fuel, energy and input costs.
- Acquisition integration (Operational): SRS, GMS and Mingledorff's have added $22.9bn of goodwill and $10.5bn of intangibles, which the 10-K flags as impairment and integration risks.
- Pro trade credit (Financial): Expanding trade credit to contractors exposes HD to losses if Pro customers cannot pay in a downturn.
- Competition and shrink (Competitive): Lowe's is building a rival Pro distribution platform through FBM and ADG. AI tools increase price transparency, and the 10-K cites heightened shrink from organised retail crime.
- Key person (Operational): The Chair and CEO is on temporary medical leave, and the company is run under an interim structure.
11. Recent Developments
- 28 Sep 2026 — Shares near 52-week low. The stock closed at $289.89, just above its 52-week low of $289.10 and about 29% below its 52-week high of $410.95.
- 10 Sep 2026 — Insider sale. Chief Accounting Officer Kimberly Scardino sold 675 shares at $305.95, per a Form 4 filing.
- 27 Aug 2026 — Magic Apron expanded. Home Depot extended its Magic Apron AI assistant with localised in-store guidance across all US stores.
- 20 Aug 2026 — Dividend declared. The board declared a quarterly dividend of $2.33 per share, paid 17 Sep 2026.
- 18 Aug 2026 — Q2 FY2026 results.
- Net sales were $47,861m (+5.7%), comparable sales +1.7% and adjusted EPS $4.92.
- Full-year guidance was reaffirmed.
- 18 Aug 2026 — Nationwide Express Delivery. 3-hour delivery launched from more than 2,000 US stores for a flat fee, with no membership needed.
- 12 Aug 2026 — CEO medical leave. Ted Decker began a temporary medical leave, with Ann-Marie Campbell and Richard McPhail sharing interim responsibilities.
- 30 Jul 2026 — Organisational realignment. Home Depot created an Office of Pro Acceleration under CFO Richard McPhail and combined credit, loyalty and online under one leader.
12. Key Dates Coming Up
- Expected Nov 2026 — Next quarterly dividend declaration. The date has not yet been announced.
- 17 Nov 2026 — Q3 FY2026 results, with a conference call at 9:00am ET.
- TBC — Ted Decker's return from medical leave. The company said it expects him back within the next few months.
- 31 Jan 2027 — FY2026 year-end (52 weeks).
- Expected Feb 2027 — Q4 and FY2026 results and FY2027 guidance. The date has not yet been confirmed.
Macro events are on the ChartsView Economic Calendar, and you can discuss Home Depot on the ChartsView Forum.
Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.
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13. Thesis Verdict
The central thesis. Home Depot sells home-improvement products to DIY and Pro customers through 2,364 stores and online, and increasingly through its SRS specialty distribution arm (7.7% of FY2025 sales), earning a 12.7% operating margin from purchasing and logistics scale. FY2025 net sales rose 3.2% to $164,683m on comparable growth of just 0.3%, and adjusted EPS fell to $14.69; Q2 FY2026 sales rose 5.7% with comparable sales up 1.7%, and management reaffirmed FY2026 guidance of 2.5–4.5% sales growth and flat to +4% EPS growth. The build-out of an integrated Pro platform through SRS, GMS and Mingledorff's is the main structural driver, and the Q3 FY2026 results on 17 Nov 2026 are the next checkpoint.
What would confirm or break it. Confirmation would come from customer transactions turning positive, the Pro businesses growing faster than the store base, and debt reduction that allows buybacks to resume. The thesis would weaken if housing turnover and mortgage rates keep big-ticket demand depressed, if the $22.9bn of acquisition goodwill leads to integration problems or impairments, or if leadership uncertainty during the CEO's medical leave slows execution.
Watchpoints
- ConfirmsQ3 FY2026 earnings (49 days) landing in line with or above management guidance.
- ConfirmsEvidence supporting the "Pro platform built out at scale:" thesis continuing to build across subsequent filings.
- InvalidatesMaterialisation of the "Housing and consumer demand (Macro):" risk, or any disclosure that fundamentally alters the capital-return or growth profile stated by management.
Diagnostic grid
Generated by ChartsView research tooling. Thesis strength measures how well the evidence in this report supports the company's stated thesis — it is NOT a buy/sell rating or price target. ChartsView is not authorised by the FCA to provide regulated investment advice. Generated 29 Sep 2026.