01—Abstract
Summary
Summary of the 10-K filed March 18, 2026. Cited figures are marked; the original filing is the authoritative source.
The Home Depot, Inc. reported net sales of $164.7 billiona and net earnings of $14.2 billion ($14.23 per diluted share) for fiscal year 2025.
The company experienced a 3.2% increase in net sales, largely driven by the acquisitions of SRS and GMS, which contributed $6.3 billionb in incremental net sales. Comparable sales saw a modest increase of 0.3%, with a 1.4% rise in average ticket offset by a 1.0% decrease in customer transactions. Financially, Home Depot generated $16.3 billion in operating cash flow and returned $9.2 billion to shareholders through dividends, including a 2.2% increase in its quarterly cash dividend.
The company invested $3.7 billionc in capital expenditures to support its strategic initiatives, focusing on associates, customer experience, and Pro segment growth. While the company paused share repurchases in March 2024, it maintains a significant authorization and sufficient liquidity to fund operations and future investments.
02—Key points
Key Highlights
- Net sales reached $164.7 billion, a 3.2% increase, driven by acquisitions and modest comparable sales growth.
- Net earnings were $14.2 billion, or $14.23 per diluted share, a decrease from the prior year primarily due to acquisitions and a favorable tax item in the prior year.
- The company returned $9.2 billion to shareholders via dividends and increased its quarterly dividend by 2.2% to $2.30 per share.
- Capital expenditures totaled $3.7 billion, focused on strategic growth areas like Pro segment engagement and customer experience enhancements.
- Acquisitions of SRS (completed in fiscal 2024) and GMS (completed in fiscal 2025) significantly contributed to sales growth and expanded the company's reach in specialty building products.
- Comparable sales increased by 0.3%, with average ticket up 1.4% but customer transactions down 1.0%, indicating a mixed consumer spending environment.
- The company maintained strong operational execution, with robust cash flow generation and a focus on its strategic priorities despite macroeconomic uncertainties.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2026, Home Depot, Inc. kept $0.09.
- Revenue$164.68B100.0%
- Cost of revenue−$109.82B66.7%
- Gross profit$54.87B33.3%
- Operating costs−$33.98B20.6%
- Operating income$20.89B12.7%
- Interest, other & tax−$6.73B4.1%
- Net income$14.16B8.6%
Where FY2026 revenue went
$164.68B- Cost of revenue: $109.82B, 67% of revenue
- SG&A: $30.70B, 19% of revenue
- Net income: $14.16B, 8.6% of revenue
- Other operating costs: $3.27B, 2.0% of revenue
- Interest, other & tax: $6.73B, 4.1% of revenue
Kept 8.6% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2026filed March 18, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $164.68B$159.51B | +3.2% |
| Cost of Revenue | $109.82B$106.21B | +3.4% |
| Gross Profit | $54.87B$53.31B | +2.9% |
| SG&A Expenses | $30.70B$28.75B | +6.8% |
| Operating Expenses | $33.98B$31.78B | +6.9% |
| Operating Income | $20.89B$21.53B | −3.0% |
| Net Income | $14.16B$14.81B | −4.4% |
| EPS (Basic) | $14.26$14.96 | −4.7% |
| EPS (Diluted) | $14.23$14.91 | −4.6% |
| Shares Outstanding (Basic) | 993.00M990.00M | +0.3% |
| Shares Outstanding (Diluted) | 995.00M993.00M | +0.2% |
05—Questions
Frequently Asked Questions
What was the financial performance of Home Depot in fiscal year 2025?
In fiscal year 2025, Home Depot reported net sales of $164.7 billion and net earnings of $14.2 billion, which translated to $14.23 per diluted share. This represents a 3.2% increase in net sales compared to the prior year.
How did the company's acquisitions impact its performance?
The acquisitions of SRS and GMS were significant drivers of growth, contributing approximately $6.3 billion to incremental net sales in fiscal 2025. These acquisitions are part of the company's strategy to expand its Pro segment and specialty building product distribution capabilities.
What is the company's capital allocation strategy and how did it deploy capital in fiscal 2025?
Home Depot's capital allocation prioritizes reinvestment in the business, followed by dividends, and then share repurchases. In fiscal 2025, the company invested $3.7 billion in capital expenditures and returned $9.2 billion to shareholders through dividends. Share repurchases were paused during the fiscal year in connection with the SRS acquisition.
How did comparable sales perform in fiscal year 2025?
Comparable sales experienced a slight increase of 0.3%. This was driven by a 1.4% increase in the average ticket, while customer transactions saw a decrease of 1.0%. This suggests that while customers spent more per transaction, the overall number of transactions declined.
06—Continue