The Home Depot announced its financial results for the fourth quarter and full fiscal year 2025, along with an increase in its quarterly dividend and guidance for fiscal year 2026.
Fourth Quarter 2025 Highlights
Sales for the fourth quarter of fiscal 2025 reached $38.2 billion, marking a 3.8% decrease compared to the fourth quarter of fiscal 2024. This period included 13 weeks, one less than the previous year's fourth quarter, which accounted for approximately $2.5 billion in sales.
Comparable sales for the quarter increased by 0.4% overall and 0.3% in the U.S.
Net earnings were $2.6 billion, or $2.58 per diluted share. This is a decrease from $3.0 billion, or $3.02 per diluted share, reported in the same period of fiscal 2024. The additional week in fiscal 2024 contributed approximately $0.30 to diluted earnings per share.
Full Fiscal Year 2025 Performance
Total sales for fiscal 2025 were $164.7 billion, representing a 3.2% increase from fiscal 2024.
Comparable sales for the full year rose by 0.3% globally and 0.5% in the U.S.
Net earnings totaled $14.2 billion, or $14.23 per diluted share. This compares to $14.8 billion, or $14.91 per diluted share, in fiscal 2024.
Leadership Commentary
Ted Decker, chair, president, and CEO, stated that "the fourth-quarter results were largely in line with expectations," citing a lack of storm activity in the third quarter and ongoing consumer uncertainty within the housing market.
Decker added that underlying demand remained relatively stable throughout the year, once adjusted for storm impacts.
Quarterly Dividend Increased
The company's board of directors approved a 1.3% increase in its quarterly dividend, raising it to $2.33 per share. This equates to an annual dividend of $9.32 per share.
This dividend is scheduled for payment on March 26, 2026, to shareholders recorded as of March 12, 2026. This marks the 156th consecutive quarter the company has paid a cash dividend.
Fiscal Year 2026 Outlook
For fiscal year 2026, The Home Depot provided the following projections:
- Total sales growth: Approximately 2.5% to 4.5%
- Comparable sales growth: Approximately flat to 2.0%
- New stores: Approximately 15 new stores
- Gross margin: Approximately 33.1%
- Operating margin: Approximately 12.4% to 12.6%
- Diluted earnings-per-share growth: Approximately flat to 4.0% from $14.23 in fiscal 2025
- Capital expenditures: Approximately 2.5% of total sales