01—Abstract
Summary
Summary of the 10-Q filed August 26, 2025. Cited figures are marked; the original filing is the authoritative source.
The Home Depot, Inc. reported solid financial results for the second quarter and the first half of fiscal year 2025, demonstrating resilience in a dynamic retail environment.
Net sales increased by 4.9% to $45.3 billiona for the quarter and 7.0% to $85.1 billion for the six-month period, largely driven by the inclusion of SRS and positive comparable sales. While net earnings saw a slight decrease year-over-year for both periods, primarily due to higher interest expenses and a less favorable tax rate compared to the prior year's one-time benefits, earnings per diluted share remained strong at $4.58 for the quarter and $8.03 for the half. The company continues to manage its capital effectively, generating significant operating cash flow used to fund dividends and capital expenditures.
Management remains focused on strategic investments in the business, including technology and Pro customer capabilities, with plans for substantial capital expenditures in fiscal 2025. The company also announced its definitive agreement to acquire GMS, a specialty building products distributor, for approximately $5.5 billionb, signaling continued strategic growth initiatives.
02—Key points
Key Highlights
- Net sales for Q2 FY2025 increased 4.9% to $45.3 billion, with the six-month total up 7.0% to $85.1 billion, bolstered by the SRS acquisition and positive comparable sales.
- Diluted earnings per share were $4.58 for Q2 FY2025 and $8.03 for the first six months, showing slight decreases compared to the prior year periods.
- Operating cash flow for the first six months of FY2025 was $9.0 billion, supporting a robust dividend payment of $4.6 billion.
- The company plans capital expenditures of approximately $4 billion for fiscal 2025, focusing on customer experience improvements, Pro capabilities, and new store development.
- Home Depot has entered into a definitive agreement to acquire GMS for approximately $5.5 billion (enterprise value), expected to close in the second half of fiscal 2025.
- Inventory turnover slightly decreased to 4.6 times from 4.9 times in the prior year, attributed to higher average inventory levels.
- The company has paused share repurchases since March 2024 and has approximately $11.7 billion remaining on its current authorization.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Home Depot, Inc. kept $0.10.
- Revenue$45.28B100.0%
- Cost of revenue−$30.15B66.6%
- Gross profit$15.13B33.4%
- Operating costs−$8.57B18.9%
- Operating income$6.55B14.5%
- Interest, other & tax−$2.00B4.4%
- Net income$4.55B10.1%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 26, 2025Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $45.28B$43.17B | +4.9% |
| Cost of Revenue | $30.15B$28.76B | +4.8% |
| Gross Profit | $15.13B$14.42B | +4.9% |
| SG&A Expenses | $7.76B$7.14B | +8.7% |
| Operating Expenses | $8.57B$7.88B | +8.7% |
| Operating Income | $6.55B$6.53B | +0.3% |
| Net Income | $4.55B$4.56B | −0.2% |
| EPS (Basic) | $4.59$4.61 | −0.4% |
| EPS (Diluted) | $4.58$4.60 | −0.4% |
| Shares Outstanding (Basic) | 992.00M990.00M | +0.2% |
| Shares Outstanding (Diluted) | 994.00M992.00M | +0.2% |
05—Questions
Frequently Asked Questions
What is the impact of the SRS acquisition on Home Depot's financial performance?
The acquisition of SRS significantly contributed to the increase in net sales for both the second quarter and the first six months of fiscal 2025. SRS added $1.8 billion in net sales for the quarter and $4.4 billion for the six-month period, driving top-line growth.
How is Home Depot managing its debt and capital structure, especially with the upcoming GMS acquisition?
Home Depot's total liabilities remained relatively stable year-over-year. The company has actively managed its debt facilities, including extending credit facilities and increasing its commercial paper program capacity in anticipation of future financing needs, such as the GMS acquisition. The GMS acquisition is expected to be funded through cash on hand and borrowings under its commercial paper program.
What is the outlook for comparable sales, and what factors are influencing it?
Comparable sales saw a modest increase of 1.0% for Q2 FY2025 and 0.4% for the first six months. This growth was driven by a 1.4% increase in average ticket for the quarter, though offset by a slight decrease in customer transactions. Management notes that while smaller home improvement projects are driving engagement, macroeconomic uncertainties and high interest rates continue to pressure demand for larger projects.
Has Home Depot resumed its share repurchase program?
No, Home Depot paused its share repurchase program in March 2024 and has not resumed activity as of August 3, 2025. Approximately $11.7 billion remains available under its existing $15.0 billion authorization.
06—Continue