Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Home Depot (HD) delivered FY2025 revenue growth of 3.2% to $164.7B, but profitability declined as SG&A costs surged 6.8% and net income fell 4.4% to $14.2B, reflecting margin pressure and higher operating expenses following its acquisition activity.
Revenue
$164.68B
+3.24% YoY
EPS (Diluted)
$14.23
-4.56% YoY
Gross Margin
33.3%
-0.1 pts YoY
Operating Income
$20.89B
-2.95% YoY
Source: SEC XBRL
Home Depot (HD) reported FY2025 revenue of $164.68B, up 3.2% year over year. Operating margin was 12.7%, down 0.8 points from 13.5% a year earlier. Operating cash flow was $16.32B, down 17.6% year over year.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 3.43 | 3.51 | Miss -2.2% |
| Mar 2026 | 2.72 | 2.62 | Beat +4.0% |
| Dec 2025 | 3.74 | 3.95 | Miss -5.4% |
| Sep 2025 | 4.68 | 4.85 | Miss -3.6% |
Compiled by AI from this SEC filing
Total revenue grew 3.2% year-over-year to $164.7B in FY2025, up from $159.5B in the prior year, suggesting modest top-line expansion despite a challenging macroeconomic backdrop for home improvement spending.
Source: 10-K Income Statement
Selling, General & Administrative expenses rose sharply by 6.8% to $30.7B (from $28.7B), outpacing revenue growth and contributing to a 3.0% decline in operating income to $20.9B and compression in operating margin from 13.5% to 12.7%.
Source: 10-K Income Statement
Net income fell 4.4% to $14.2B and diluted EPS dropped 4.6% to $14.23 from $14.91, reflecting the combined impact of higher costs and increased interest or other below-the-line expenses relative to the prior year.
Source: 10-K Income Statement
Total assets grew 9.3% to $105.1B while stockholders' equity nearly doubled (+93.0%) to $12.8B, likely reflecting the impact of the SRS Distribution acquisition completed during FY2025, which also drove higher current liabilities (+13.1%) and a modest reduction in long-term debt (-3.8%) to $49.4B.
Source: 10-K Balance Sheet
Operating cash flow fell 17.6% to $16.3B from $19.8B in the prior year, while investing outflows narrowed sharply (from -$21.0B to -$9.0B), suggesting the large acquisition spend occurred in the prior year; financing outflows surged to -$7.7B from -$694M, reflecting debt repayment or dividend activity.
Source: 10-K Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
Home Depot completed a major acquisition (SRS Distribution) that significantly expanded its asset base and liabilities. Integration of large acquisitions carries execution risk, including potential cost overruns, cultural misalignment, and failure to achieve expected synergies, which could weigh on future profitability.
Source: 10-K Balance Sheet & Cash Flow Statement
With long-term debt of $49.4B and a debt-to-equity ratio of approximately 7.2x, Home Depot carries substantial financial leverage. Rising interest rates or deteriorating cash flows could increase refinancing risk and limit financial flexibility for future investments or shareholder returns.
Source: 10-K Balance Sheet, Key Ratios
Gross margin declined slightly to 33.3% and operating margin fell from 13.5% to 12.7% as SG&A expenses grew at twice the rate of revenue. Sustained cost inflation in labor, logistics, or overhead could further erode profitability if revenue growth remains modest.
Source: 10-K Income Statement, Key Ratios
Operating cash flow dropped 17.6% to $16.3B, which could constrain Home Depot's ability to fund capital expenditures, dividends, and debt repayment simultaneously. A continued decline in cash generation would pressure the company's financial flexibility.
Source: 10-K Cash Flow Statement
Home Depot's revenue is closely tied to housing market activity, including home sales, renovation spending, and consumer confidence. A prolonged slowdown in the housing market or elevated mortgage rates suppressing home turnover could limit same-store sales growth and top-line expansion.
Source: 10-K Income Statement (revenue growth context)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 164.68 $B | 159.51 $B | +3.24% |
Cost of Revenue $B | 109.82 $B | 106.21 $B | +3.40% |
Gross Profit $B | 54.87 $B | 53.31 $B | +2.92% |
Operating Income $B | 20.89 $B | 21.53 $B | -2.95% |
Net Income $B | 14.16 $B | 14.81 $B | -4.42% |
EPS (Basic) $ | 14.26 $ | 14.96 $ | -4.68% |
EPS (Diluted) $ | 14.23 $ | 14.91 $ | -4.56% |
SG&A Expense $B | 30.70 $B | 28.75 $B | +6.80% |
Answers draw on this SEC filing and the data on this page
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