Shares of The Home Depot (NYSE: HD) have gained 9% in the previous three months. The house enchancment retailer is scheduled to report its earnings outcomes for the fourth quarter of 2025 on Tuesday, February 24, earlier than the market opens. Right here’s a have a look at what to count on from the earnings report:
Revenue
Analysts are projecting income of $38 billion for Home Depot in the fourth quarter of 2025, which signifies a 4% decline from the identical interval a 12 months in the past. Within the third quarter of 2025, gross sales elevated 2.8% 12 months-over-12 months to $41.4 billion.
Earnings
The consensus estimate for earnings per share in Q4 2025 is $2.52, which means a lower of 16% from the prior-12 months interval. In Q3 2025, EPS was down 1% YoY to $3.62.
Factors to notice
Home Depot’s outcomes in the fourth quarter are anticipated to be pressured by lack of storm-associated demand, financial uncertainty, and housing market headwinds. The softness in bigger discretionary tasks is probably going to have continued as customers delay bigger repairs and remodels amid inflationary pressures.
The corporate has been seeing constructive performances from its Professional and DIY, or do-it-your self, buyer segments. Its elevated investments to enhance the Professional ecosystem are anticipated to assist broaden its choices, enhance its capabilities and drive gross sales and progress in the phase.
The house enchancment retailer continues to roll out new instruments and capabilities that assist Professionals with their order and fulfilment wants. Its current launches embody Blueprint Takeoffs, an AI-powered software that helps Professional clients create materials lists and estimates sooner and then full all their purchases by means of Home Depot shops, thereby simplifying the method considerably. It additionally launched Materials Record Builder AI, one other AI software that helps Professionals create lists of supplies wanted for total tasks.
Its acquisitions of SRS and GMS, which broaden its capabilities with specialty Professional clients may also assist contribute to its progress in this phase. Home Depot expects to profit from pent-up demand as soon as the challenges in the housing market abate and the house enchancment market sees a rebound.
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