10-QPeriod: Q3 FY2026

HOME DEPOT, INC. Quarterly Report for Q3 Ended Nov 2, 2025

Filed November 25, 2025For Securities:HD

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 Statements
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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.

Frequently Asked Questions

The acquisition of GMS, completed on September 4, 2025, contributed $892 million to Home Depot's net sales in the third quarter of fiscal year 2025. While it boosted overall net sales, the integration of GMS and its associated costs, along with other factors, contributed to a slight decrease in diluted earnings per share compared to the prior year.

Home Depot acknowledges the impact of macroeconomic uncertainties and high interest rates on demand for larger home improvement projects. Their comparable sales performance reflects a shift towards smaller projects. The company is focusing on managing costs, mitigating tariff impacts through supply chain diversification and modest price adjustments, and maintaining a strong value proposition for customers.

Home Depot plans to invest approximately $4 billion in capital expenditures for fiscal 2025, focusing on improving customer experience, technology, Pro capabilities, and new store development. The company has announced a 2.2% increase in its quarterly cash dividend and paid $6.9 billion in dividends during the first nine months of fiscal 2025. Share repurchases have been paused since March 2024.

The inventory turnover ratio decreased from 4.8 times in Q3 FY2024 to 4.5 times in Q3 FY2025. This decline is attributed to higher average inventory levels maintained during the first nine months of fiscal 2025.