Home Depot (NYSE:HD) Issues Earnings Results

Key Points

• Home Depot beat quarterly expectations: Adjusted EPS was $4.92 versus the $4.73 consensus, while revenue reached $47.86 billion, ahead of the $47.24 billion estimate and up 5.7% year over year.
• Comparable sales improved modestly: Overall comparable sales rose 1.7% and U.S. comparable sales increased 1.3%, with larger average purchases offsetting a decline in customer transactions.
• Management reaffirmed fiscal 2026 guidance: Home Depot continues to expect total sales growth of approximately 2.5% to 4.5% and comparable-sales growth ranging from flat to 2.0%; analysts maintain a “Moderate Buy” consensus with a $373.89 target.

Home Depot (NYSE:HD - Get Free Report) issued its quarterly earnings data on Tuesday. The home improvement retailer reported $4.92 EPS for the quarter, topping the consensus estimate of $4.73 by $0.19, FiscalAI reports. Home Depot had a return on equity of 117.24% and a net margin of 8.41%.The firm had revenue of $47.86 billion during the quarter, compared to the consensus estimate of $47.24 billion.

Home Depot Stock Down 0.1%

HD opened at $338.44 on Tuesday. The firm has a market capitalization of $337.47 billion, a P/E ratio of 24.04, a price-to-earnings-growth ratio of 4.08 and a beta of 0.95. Home Depot has a one year low of $289.10 and a one year high of $426.75. The company has a fifty day moving average price of $339.74 and a 200-day moving average price of $341.23. The company has a debt-to-equity ratio of 3.23, a current ratio of 1.04 and a quick ratio of 0.28.

Home Depot Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Thursday, June 4th were issued a $2.33 dividend. This represents a $9.32 annualized dividend and a yield of 2.8%. The ex-dividend date of this dividend was Thursday, June 4th. Home Depot's dividend payout ratio (DPR) is presently 66.19%.

Institutional Trading of Home Depot

Several institutional investors and hedge funds have recently modified their holdings of HD. Wellington Management Group LLP raised its stake in shares of Home Depot by 60.8% during the third quarter. Wellington Management Group LLP now owns 10,143,089 shares of the home improvement retailer's stock worth $4,109,878,000 after acquiring an additional 3,836,051 shares in the last quarter. J. Stern & Co. LLP boosted its holdings in Home Depot by 14,869.3% in the fourth quarter. J. Stern & Co. LLP now owns 2,232,521 shares of the home improvement retailer's stock valued at $768,210,000 after acquiring an additional 2,217,607 shares in the last quarter. Amundi increased its position in Home Depot by 23.5% during the 4th quarter. Amundi now owns 6,718,133 shares of the home improvement retailer's stock valued at $2,311,710,000 after purchasing an additional 1,279,867 shares during the period. Charles Schwab Investment Management Inc. increased its position in Home Depot by 7.8% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 15,471,132 shares of the home improvement retailer's stock valued at $5,323,620,000 after purchasing an additional 1,113,114 shares during the period. Finally, Bank of America Corp DE lifted its position in shares of Home Depot by 5.6% in the 4th quarter. Bank of America Corp DE now owns 16,063,532 shares of the home improvement retailer's stock worth $5,527,461,000 after purchasing an additional 851,029 shares during the period. Hedge funds and other institutional investors own 70.86% of the company's stock.

Analyst Ratings Changes

Several analysts have recently commented on the stock. The Goldman Sachs Group lowered their target price on shares of Home Depot from $409.00 to $390.00 and set a "buy" rating for the company in a report on Wednesday, May 20th. Weiss Ratings raised shares of Home Depot from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, July 7th. Argus reduced their target price on shares of Home Depot from $425.00 to $400.00 and set a "buy" rating for the company in a research note on Thursday, May 21st. Oppenheimer dropped their price target on shares of Home Depot from $405.00 to $310.00 and set a "market perform" rating on the stock in a research note on Monday, May 18th. Finally, Sanford C. Bernstein set a $344.00 price objective on shares of Home Depot in a research note on Wednesday, August 12th. Eighteen investment analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $373.89.

Key Stories Impacting Home Depot

Here are the key news stories impacting Home Depot this week:

• Positive Sentiment: Adjusted earnings per share of $4.92 exceeded the $4.73 analyst consensus, while revenue rose 5.7% year over year to $47.86 billion, ahead of the $47.24 billion estimate. The results indicate that resilient repair and maintenance demand is offsetting sluggish home sales and remodeling activity. Home Depot Stock Rises as Earnings Defy Housing Slump
• Positive Sentiment: Comparable sales increased 1.7% overall and 1.3% in the United States. Average ticket growth of 2.8% helped offset a 1.0% decline in comparable customer transactions, suggesting customers are making fewer but larger purchases. The Home Depot Announces Second Quarter Fiscal 2026 Results
• Positive Sentiment: Management reaffirmed fiscal 2026 guidance for total sales growth of approximately 2.5% to 4.5% and comparable-sales growth ranging from flat to 2.0%, reducing the risk of a near-term outlook reset. Home Depot Reaffirms Guidance

About Home Depot

The Home Depot, Inc NYSE: HD is a leading home improvement retailer that operates large-format stores and an integrated online platform offering a broad range of products and services for do-it-yourself consumers, professional contractors and businesses. The company was founded in 1978 by Bernard Marcus and Arthur Blank and is headquartered in Atlanta, Georgia. Since opening its first stores at the end of the 1970s, Home Depot has grown into a multinational retailer known for its orange-branded stores and wide assortment of home improvement merchandise.

Home Depot's core business includes the sale of building materials, lumber, tools, hardware, appliances, paint, plumbing and electrical supplies, lawn and garden products, and home décor.

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