HD
Updated: 25/09/2026, 06:51:56
The Home Depot, Inc. operates as a prominent retailer specializing in home renovation and improvement. Through its expansive network of "The Home Depot" stores, it furnishes consumers with an extensive array of goods, including building materials, home enhancement products, lawn and garden supplies, decorative items, and facilities maintenance, repair, and operational (MRO) supplies. In addition to selling products, the company extends professional installation services for key home features like flooring, cabinetry (including makeovers), countertops, furnaces and central air conditioning systems, and window replacements. Customers can also access tool and equipment rental options. Its diverse clientele includes both individual homeowners and a broad spectrum of professional clients, such as renovators, general contractors, maintenance personnel, handymen, property managers, building service contractors, and specialized tradespeople like electricians, plumbers, and painters. The firm also distributes its merchandise through several online platforms, notably homedepot.com, along with specialized sites such as blinds.com for bespoke window coverings and thecompanystore.com for home textiles and decorative goods. By the end of 2021, the corporation operated a total of 2,317 outlets across the United States. Incorporated in 1978, The Home Depot, Inc. maintains its corporate headquarters in Atlanta, Georgia.
No summaries found.
Reported and calculated KPIs plus operational exposure disclosed in the FY 2026 filing.
Revenue
$164.7B
FY 2026 · Reported
Net income
$14.2B
FY 2026 · Reported
Gross margin
33.3%
FY 2026 · Calculated
Free cash flow
N/A
FY — · Reported
R&D intensity
N/A
FY — · Reported
Share repurchases
$0.6B
FY 2025 · Reported
Other offerings mentioned without separate sales
Area-level product sales are displayed only when the filing reports a product × geography breakdown. Regional totals are not allocated across products by estimation.
Map layer
Pins show disclosed operations. The heatmap colors the filing’s reported geographies; regional figures shade the region and are not estimates for each country.
Only locations and quantities explicitly supported by the filing are displayed. A country-level manufacturing percentage or product allocation is shown only when the source discloses it; materiality scores are never presented as production shares.
World's largest home improvement retailer
The Home Depot is the world's largest home improvement retailer based on fiscal 2025 net sales, offering home improvement products, building materials, lawn and garden, décor, and facilities MRO products in stores and online, plus installation services and tool/equipment rental.
“The Home Depot, Inc. is the world’s largest home improvement retailer based on net sales for fiscal 2025.”
Inventory valuation geography detail
Canada and Mexico retail operations, distribution centers, and SRS distribution inventories use cost method (moving average/FIFO)
“The remaining merchandise inventories, including those within the retail operations in Canada and Mexico, distribution centers, and SRS distribution operations, are recorded at the lower of cost or net realizable value”
Store footprint and SRS branches
2,359 stores (10 new U.S., 2 Mexico); 13.7% in Canada/Mexico; 1,250+ SRS locations
“we opened ten new stores in the U.S. and two new stores in Mexico, resulting in a total store count of 2,359 at February 1, 2026.”
One reportable segment (Primary)
Geographic operating segments U.S., Canada and Mexico are aggregated into one reportable segment, the 'Primary segment'.
“the geographic operating segments of the U.S., Canada and Mexico are aggregated into one reportable segment (the “Primary segment”).”
Two primary customer groups: consumers (DIY/DIFM) and Pros
Serves consumers (DIY and DIFM) and Pros — professional renovators, general contractors, homebuilders, specialty trades (electricians, plumbers, roofers, pool contractors, etc.).
“We serve two primary customer groups — consumers (including both DIY and DIFM customers) and Pros”
Interconnected retail: digital properties and fulfillment options
Operates 13+ e-commerce websites/apps across U.S., Canada, Mexico; fulfillment includes Buy Online Pickup In Store, Deliver From Store, Return In Store, Ship to Store.
“we offer a significantly broader product assortment through our mobile applications and websites, including homedepot.com, our primary website”
Merchandising departments with positive comp sales
11 Primary-segment merchandising departments posted positive comparable sales in FY2025
“our Storage & Organization, Electrical, Bath, Plumbing, Indoor Garden, Outdoor Garden, Kitchen & Blinds, Hardware, Power, Building Materials, and Appliances merchandising departments within our Primary segment posted positive comparable sales”
Merchandising departments and online assortment
Typical store stocks ~30,000–40,000 items across 16 merchandising departments; online offerings extend assortment via homedepot.com and other websites.
“A typical Home Depot store stocks approximately 30,000 to 40,000 items during the year”
Services: installation, tool rental, MRO via HD Supply
Offers installation services across categories (flooring, water heaters, bath, garage doors, etc.), tool and equipment rental at many locations, and MRO products/services to multifamily, hospitality, healthcare, and government housing via HD Supply.
“we offer a number of services for our customers, including installation services for our DIY and DIFM customers... We also provide tool and equipment rentals at many locations”
Geographic footprint in inventory accounting
Retail operations in Canada and Mexico plus U.S. SRS distribution operations disclosed
“including those within the retail operations in Canada and Mexico, distribution centers, and SRS distribution operations”
Acquisition contribution to net sales
SRS and GMS contributed ~$6.3B incremental net sales in fiscal 2025
“In aggregate, these acquisitions contributed approximately $6.3 billion of incremental net sales during fiscal 2025.”
Global sourcing offices and proprietary/exclusive brands
Maintains sourcing offices in Mexico, Canada, India, Vietnam, Taiwan, China, and Europe; uses exclusive supplier alliances and proprietary private-brand products that generally carry higher margins.
“we maintained sourcing offices in Mexico, Canada, India, Vietnam, Taiwan and China, as well as certain locations in Europe”
Global supplier base dependency
Global supplier sourcing exposed to tariffs, trade restrictions, customs actions and supply chain disruption.
“We buy our products from suppliers located around the world, who in turn procure materials from across the globe.”
Labor attraction/retention and cost risk
Labor cost inflation and turnover risk; limited union representation; competitive market for tech professionals.
“A limited number of our associates are represented by labor unions, and we may be subject to future labor union efforts to organize groups of our associates from time to time.”
GMS acquisition
Acquired GMS for ~$5.5B cash ($110/share); completed September 4, 2025; became subsidiary of SRS
“we also completed the GMS acquisition for aggregate cash consideration totaling approximately $5.5 billion, including the repayment of certain of GMS’s outstanding debt.”
SRS acquisition (fiscal 2024) and GMS acquisition by SRS (fiscal 2025)
SRS acquired in fiscal 2024 (roofing, landscape, pool distribution); SRS completed GMS acquisition in fiscal 2025; SRS incl. GMS operates 1,250+ locations across four non-reportable lines of business.
“In fiscal 2024, we acquired SRS, a leading residential specialty trade distribution company... In fiscal 2025, SRS completed the acquisition of GMS”
FY2025 business acquisitions
Paid $5,410M net for business acquisitions in FY2025 (vs $17,644M in FY2024, SRS year); goodwill rose to $22,344M
“Payments for businesses acquired, net (5,410)(17,644)(1,514)”
Fiscal 2025 capital expenditures and shareholder returns
$3.7B capex in fiscal 2025; $9.2B returned via dividends; quarterly dividend raised 2.2% from $2.25 to $2.30 per share in February 2025.
“we invested $3.7 billion in capital expenditures... we returned $9.2 billion to shareholders in the form of cash dividends, following a 2.2% increase in our quarterly cash dividend from $2.25 per share to $2.30 per share”
Distinct competitive advantages
Cited advantages: brand, customer service, product authority, knowledgeable associates, scale, premier real estate, digital/interconnected experience, supply chain network, and deep Pro relationships.
“leveraging its distinct competitive advantages – our brand, excellent customer service, product authority in home improvement, knowledgeable associates and culture, scale, premier real estate portfolio, digital and interconnected experience, supply chain network, and our deep relationships with Pros”
Basis of competition
Competes on customer experience, price, quality, assortment, delivery/pickup options and interconnected experience.
“We compete primarily based on customer experience; price; quality; product availability, assortment, and innovation; and delivery options and capabilities, both in-store and online.”
Macro pressure on home improvement demand
Smaller project engagement offset by macro uncertainty and high rates pressuring demand
“continued macroeconomic uncertainties and other macroeconomic factors, including a persisting high interest rate environment, that continue to pressure broader home improvement demand.”
Fiscal 2025 strategic investment priorities
Fiscal 2025 strategy: drive core and culture, deliver frictionless interconnected experience, and win with Pros; goal to grow faster than the market.
“In fiscal 2025, we strategically invested across our business to advance our growth strategy”
Interconnected experience investment
Interconnected strategy: supply chain buildout, digital capabilities, store expansion, acquisitions.
“we have made significant investments to deliver a frictionless interconnected experience, including enhancing and expanding our supply chain, developing differentiated capabilities for our customers, including enhancements and improvements to our digital capabilities, expanding our store base, and making strategic acquisitions”
Currency impact on net sales
Stronger USD reduced net sales by $307M in FY2025
“A stronger U.S. dollar compared to fiscal 2024 negatively impacted net sales by $307 million in fiscal 2025.”
Gross margin and SG&A drivers
Gross margin 33.3%; SG&A 18.6% on higher payroll; interest expense $2.4B
“The decrease in gross profit margin reflects the inclusion of SRS and GMS in our consolidated results, partially offset by lower shrink and certain supply chain benefits within our Primary segment.”
Fiscal 2025 financing activity
FY2025: $16.3B operating cash flow; $4.1B CP net; $2.2B LT debt issued; $5.0B repaid; $9.2B dividends; $3.7B capex
“we generated $16.3 billion of cash flow from operations, received $4.1 billion of proceeds from commercial paper borrowings, net of repayments, and received $2.2 billion of proceeds from the issuance of long-term debt, net of discounts.”
Debt balance increase
Short-term debt jumped to $4,464M from $316M; FY2025 saw $4,148M net short-term proceeds and $5,040M long-term repayments
“Proceeds from short-term debt, net 4,148 316 —”
Dividend increase
Quarterly dividend raised 1.3% to $2.33/share in February 2026
“In February 2026, we announced a 1.3% increase in our quarterly cash dividend to $2.33 per share.”
Fiscal 2025 headline results
Net sales $164.7B; net earnings $14.2B; diluted EPS $14.23 in fiscal 2025
“We reported net sales of $164.7 billion in fiscal 2025. Net earnings were $14.2 billion, or $14.23 per diluted share.”
Auditor and report date
KPMG LLP issued unqualified opinions on financial statements and ICFR, dated March 18, 2026
“/s/ KPMG LLP We have served as the Company’s auditor since 1979.”
Capital allocation: dividends and buybacks
$9,152M dividends paid in FY2025; no share repurchases; capex $3,679M
“Cash dividends (9,152)(8,929)(8,383)”
Stockholders' equity rebuild
Total stockholders' equity rose to $12,813M from $6,640M; treasury stock $95,971M
“Total stockholders’ equity $12,813 $6,640 $1,044”
Operating cash flow decline
Operating cash flow fell to $16,325M in FY2025 from $19,810M, driven partly by $1,498M inventory build
“Net cash provided by operating activities16,325 19,810 21,172”
Balance sheet size and working capital
Total assets $105,095M; inventories $25,817M up from $23,451M; payables declined to $11,491M
“Merchandise inventories25,817 23,451”
Intangible amortization ramp
Intangible asset amortization tripled to $607M in FY2025 from $186M in FY2023, reflecting acquisitions
“Intangible asset amortization 607 425 186”
FX translation swings
Foreign currency translation +$469M FY2025 vs -$605M FY2024
“Foreign currency translation adjustments469 (605)232”
Data privacy, cybersecurity and AI regulation
Rising data privacy/cyber/AI regulatory requirements; regulators taking more aggressive enforcement; growing litigation costs.
“many regulators have indicated an intention to take more aggressive enforcement actions regarding data privacy and cybersecurity matters, and private litigation resulting from such matters is increasing and resulting in progressively larger judgments and settlements”
Tariffs and trade policy
Tariffs increased costs in FY2025; mitigated through diversification, pricing and vendor relationships
“While we experienced increased costs as a result of tariffs in fiscal 2025, our actions, including diversification efforts and some price increases, along with our scale, vendor relationships, experienced internal teams, and other initiatives allowed us to effectively mitigate the impact on our results of operations.”
Weather and catastrophic event exposure
Natural disasters and extreme weather can hurt demand, inventory compatibility, supply chain and operations; climate transition risks cited.
“Natural disasters, such as hurricanes, tropical storms, fires, floods, droughts or water scarcity, tornadoes, and earthquakes; unseasonable, unexpected or extreme weather conditions”
Intense and fragmented competition
Highly competitive, highly fragmented industry across brick-and-mortar, multichannel and online competitors.
“Our industry is highly competitive, highly fragmented, and evolving.”
Brand and reputation risk
Brand/reputation damage could reduce demand and stock price; social media misinformation cited.
“A positive brand and reputation are critical to our business success, and, if our brand and reputation are damaged, it could negatively impact our relationships with our customers”
Tariff and trade policy exposure flagged in forward-looking statements
Forward-looking statements cite tariffs, trade policy changes, supply chain diversification, commodity inflation/deflation, interest rates, currency, cybersecurity, and geopolitical conflicts as key risks.
“the impact of tariffs; trade policy changes or restrictions, or international trade disputes and efforts and ability to continue to diversify our supply chain”
Payment-related and Pro trade credit risk
Multiple payment methods expose HD to interchange fees, fraud, processing dependency, and Pro trade credit losses.
“We accept payments using a variety of methods, including credit and debit cards, our PLCCs, cash, electronic payments, checks, digital wallets, loan programs including installment loans, trade credit, and gift cards”
AI-driven competitive and customer-behavior change
AI tools increase competition and may change customer buying habits.
“Online and other digital capabilities, as well as AI tools, facilitate competitive entry, price transparency, and comparison shopping, increasing the level of competition we face.”
Online fulfillment shift may reduce store traffic and margins
Online shift risks store traffic, cross-selling and margins.
“a greater concentration of online sales with direct fulfillment could result in a reduction in the amount of traffic in our stores, which would, in turn, reduce the opportunities for cross-selling of merchandise”
Interconnected initiative execution risk
Interconnected investments require continual spend and may not deliver expected benefits.
“The execution of initiatives to deliver our interconnected experience could adversely impact our business operations or financial results, and these initiatives might not provide the anticipated benefits.”
Customer trend and demographic responsiveness risk
Failure to respond to demographic and preference shifts could hurt demand and market share.
“The success of our business depends on our ability to identify and respond promptly to evolving trends in demographics and shifts in customer preferences, expectations and needs”
Pros (roofers, landscapers, pool contractors, general contractors, etc.) are one of two primary customer groups; SRS/GMS acquisitions specifically expand Pro trade distribution.
“Win with Pros through our differentiated value proposition and ecosystem of capabilities”
SRS and GMS acquisitions drove the majority of fiscal 2025 sales growth, contributing ~$6.3B of incremental net sales.
“The increase in net sales for fiscal 2025 was primarily driven by SRS, which was acquired on June 18, 2024, and GMS, which was acquired on September 4, 2025.”
Company ties results to state of the economy, housing and home improvement markets, and credit markets (mortgages, home equity loans, consumer and trade credit).
“the state of the economy; the state of the housing and home improvement markets; the state of the credit markets, including mortgages, home equity loans, and consumer and trade credit”
Tariffs and trade policy changes are flagged as potential disruptions to business, supply chain, and demand, with mitigation via supply chain diversification.
“events that could disrupt our business, supply chain, technology infrastructure, or demand for our products and services, such as tariffs, trade policy changes or restrictions or international trade disputes”
Tariffs raised costs in fiscal 2025; mitigated through supply chain diversification, price increases, scale and vendor relationships.
“We have worked, and continue to work, diligently to diversify our global supply chain and to implement other cost mitigation initiatives.”
Macro events, weather and disasters affect consumer spending, disposable income and home improvement project demand.
“These types of events can affect consumer spending and confidence and consumers’ disposable income, particularly with respect to home improvement or construction projects.”
Pro sales growth depends on trade credit terms and job lot capabilities; Pro payment defaults pose loss risk.
“Trade credit offerings are an important part of serving Pros, including SRS customers, and we anticipate expanding our Pro Trade Credit program”
SRS (incl. GMS) with 1,250+ locations extends Home Depot into roofing, interior/construction products, landscape, and pool distribution for specialty trade Pros.
“SRS completed the acquisition of GMS, a leading distributor of specialty building products, including drywall, ceilings, steel framing and other complementary construction products”
Global sourcing exposes product access and costs to tariffs, trade restrictions, customs actions and sanctions.
“trade restrictions; tariffs; currency exchange rates; disruptions in our suppliers’ logistics or supply chain networks”
Persisting high interest rates and macro uncertainty pressure broader home improvement demand; comparable transactions fell 1.0%.
“a persisting high interest rate environment, that continue to pressure broader home improvement demand”
GMS enhances SRS's position as a multi-category building materials distributor with complementary customer relationships.
“We believe the GMS acquisition will enhance SRS's position as a leading multi-category building materials distributor, bringing differentiated capabilities, product categories and customer relationships that are highly complementary to SRS's existing business.”
Sales growth decelerated while operating income declined and inventories built $1.5B, consistent with softer demand and inventory investment.
“Changes in merchandise inventories(1,498)(743)4,137”
Supplier financial instability, geopolitical conflict, raw material shortages and logistics disruptions can impair product access, sales and gross margin.
“If we are unable to access products to meet our customers’ demands and expectations in a timely and efficient manner, our sales and gross margin may be adversely impacted.”
Wage pressure, turnover and competition for skilled professionals raise compensation costs and can impair service quality.
“These factors, together with competition among potential employers, have resulted in and may continue to result in increased compensation costs”
Online sales grew 10.4% on a comparable-week basis and reached 15.9% of net sales.
“Calculated on a comparable week basis relative to fiscal 2024, online sales increased by 10.4%.”
AI and digital tools lower barriers to competitive entry and change shopping behavior, increasing competitive pressure on HD.
“some of those technologies, such as generative and agentic AI tools, may dramatically change customer shopping and buying habits”
Higher average long-term debt from SRS/GMS financing raised interest expense to $2,412M and lowered ROIC to 25.7%.
“primarily due to higher average long-term debt balances and lower interest income in fiscal 2025.”
Interest expense rose to $2,412M from $1,943M and short-term debt jumped to $4,464M, increasing sensitivity of earnings to rates.
“Interest expense2,412 2,321 1,943”
Evolving privacy/cyber/AI requirements impose costs, limit data use for personalization, and expose HD to fines and litigation.
“Maintaining our adherence to evolving data privacy and cybersecurity regulatory requirements, including state and international privacy laws, requires significant effort and cost”
Storms drive product demand while extreme weather and disasters can disrupt demand, inventory and operations.
“Demand for certain of our products has historically been influenced by the occurrence of seasonal events, such as storms.”
DIFM customers (homeowners using Pros) intersect DIY and Pro groups; installation services in flooring, water heaters, bath, etc., and focus on Pros drive higher product sales.
“we believe our focus on Pros who perform services for these customers helps us drive higher product sales”
Stronger USD reduced net sales by $307 million in fiscal 2025 given Canada and Mexico operations.
“A stronger U.S. dollar compared to fiscal 2024 negatively impacted net sales by $307 million in fiscal 2025.”
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