Summary
Home Depot reported solid revenue growth in the third quarter of fiscal year 2025, with net sales increasing by 2.8% to $41.4 billion, primarily driven by the recent acquisition of GMS and a positive comparable sales environment. Despite this revenue increase, diluted earnings per share saw a slight decrease of 1.4% to $3.62 compared to the prior year quarter. The company's strategic focus remains on investing in the business, including capital expenditures for store improvements and technology, while also prioritizing shareholder returns through dividends. The GMS acquisition is expected to enhance Home Depot's position in the specialty building materials distribution market. For the nine-month period ended November 2, 2025, net sales increased by 5.6% to $126.5 billion, largely due to the combined impact of the SRS and GMS acquisitions. However, diluted earnings per share for this period also declined by 2.1% to $11.65. The company continues to navigate macroeconomic uncertainties and a high-interest rate environment, which is impacting demand for larger home improvement projects. Management is actively monitoring tariffs and trade policy matters, implementing mitigation strategies to maintain customer value. Home Depot's financial position remains robust, supported by strong operating cash flow and sufficient liquidity for ongoing operations, investments, and shareholder distributions.
Financial Highlights
49 data points| Revenue | $41.35B |
| Cost of Revenue | $27.54B |
| Gross Profit | $13.81B |
| SG&A Expenses | $7.64B |
| Operating Expenses | $8.46B |
| Operating Income | $5.35B |
| Net Income | $3.60B |
| EPS (Basic) | $3.63 |
| EPS (Diluted) | $3.62 |
| Shares Outstanding (Basic) | 993.00M |
| Shares Outstanding (Diluted) | 995.00M |
Key Highlights
- 1Net sales for Q3 FY2025 increased by 2.8% to $41.4 billion, driven by the GMS acquisition and positive comparable sales.
- 2Diluted EPS for Q3 FY2025 decreased by 1.4% to $3.62 compared to the prior year quarter.
- 3Nine-month net sales increased by 5.6% to $126.5 billion, primarily due to the SRS and GMS acquisitions.
- 4Nine-month diluted EPS decreased by 2.1% to $11.65 compared to the prior year period.
- 5The company acquired GMS on September 4, 2025, which contributed $892 million in net sales during Q3 FY2025.
- 6Inventory turnover ratio decreased from 4.8x to 4.5x, attributed to higher average inventory levels.
- 7Home Depot reported a Return on Invested Capital (ROIC) of 26.3% for the trailing twelve months, down from 31.5% in the prior year, primarily due to financing the SRS acquisition.