The Home Depot (HD) Q3 2025 Financial Results Summary
QuoteReporter
•5 min read
The Home Depot (HD) Q3 2025 Financial Results Summary
Release Date: November 18, 2025
The Home Depot, the world’s largest home improvement retailer, has reported its financial results for the third quarter of fiscal year 2025. Here are the key highlights of the report:
Financial Performance Overview
- Total Sales: $41.4 billion, a 2.8% increase from $40.2 billion in Q3 2024.
- Net Earnings: $3.6 billion, or $3.62 per diluted share, compared to $3.6 billion, or $3.67 per diluted share in Q3 2024. This represents a 1.3% decrease in net earnings YoY.
- Adjusted Diluted EPS: $3.74, decreasing 1.1% from $3.78 in the same quarter of the previous year.
- Comparable Sales: Increased by 0.2%, while U.S. comparable sales increased by 0.1%.
- GMS Inc. Acquisition: Contributed approximately $900 million to total sales, accounting for about eight weeks of sales for the quarter.
Financial Metrics
- Gross Profit: $13.8 billion, a 2.9% increase YoY.
- Operating Income: $5.4 billion, decreasing by 1.2% from Q3 2024.
- Operating Margin: Approximately 12.9%, a decrease from 13.5% in the previous year.
- Adjusted Operating Margin: Approximately 13.3%, down from 13.8% in Q3 2024.
- Interest Expense: Approximately $628 million, which is a 0.5% increase compared to last year.
Fiscal 2025 Guidance Update
The Home Depot updated its fiscal 2025 guidance to reflect third-quarter performance along with anticipated pressures from ongoing consumer uncertainty and housing challenges.
- Projected Total Sales Growth: Approximately 3.0% for fiscal 2025.
- Comparable Sales Growth: Expected to be slightly positive for the comparable 52-week period.
- New Stores: Approximately 12 new stores anticipated.
- Gross Margin: Estimated at 33.2%.
- Tax Rate: Estimated around 24.5%.
- Diluted EPS Estimate: Anticipated to decline by approximately 6.0% from $14.91 in fiscal 2024.
- Adjusted EPS Estimate: Projected to decline by approximately 5.0% from $15.24 in fiscal 2024.
Cash Flow and Shareholder Returns
- Cash Dividends Paid: $6.9 billion, slightly higher than $6.7 billion in the previous year.
- Repurchases of Common Stock: No share repurchases conducted in the quarter, compared to $649 million in Q3 2024.
- Capital Expenditures: Approximately 2.5% of total sales for the quarter.
Store and Employee Metrics
- The Home Depot operated a total of 2,356 retail stores and over 1,200 SRS locations throughout its markets.
- The company employs more than 470,000 associates.
Summary of Customer Metrics
- Customer Transactions: Decreased by 1.4% year-over-year.
- Average Ticket Size: Increased by 2.0% to $90.39 compared to $88.65 in Q3 2024.
Closing Remarks
Ted Decker, chair, president, and CEO, noted that results did not meet expectations largely due to the lack of storms during the quarter, which put pressure on various categories. He emphasized that while the business’s underlying demand remained stable, consumer uncertainty and ongoing housing market pressure significantly impacted home improvement demand.
For further details on the financial results, the company will hold a conference call today at 9 a.m. ET. The entire call will also be available via a webcast and replay on the Home Depot investor relations website.
Note
These results provide a comprehensive view of The Home Depot’s performance in Q3 2025 and its outlook as the company navigates through current market challenges.
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| November 2, 2025 | October 27, 2024 | November 2, 2025 | October 27, 2024 | |
| Net sales | $41,352 | $40,217 | $126,485 | $119,810 |
| Cost of sales | $27,537 | $26,792 | $84,086 | $79,536 |
| Gross profit | $13,815 | $13,425 | $42,399 | $40,274 |
| Operating expenses: | ||||
| Selling, general and administrative | $7,636 | $7,212 | $22,930 | $21,023 |
| Depreciation and amortization | $826 | $795 | $2,428 | $2,220 |
| Total operating expenses | $8,462 | $8,007 | $25,358 | $23,243 |
| Operating income | $5,353 | $5,418 | $17,041 | $17,031 |
| Interest and other (income) expense: | ||||
| Interest income and other, net | -$32 | -$30 | -$81 | -$171 |
| Interest expense | $628 | $625 | $1,818 | $1,683 |
| Interest and other, net | $596 | $595 | $1,737 | $1,512 |
| Earnings before provision for income | ||||
| taxes | $4,757 | $4,823 | $15,304 | $15,519 |
| Provision for income taxes | $1,156 | $1,175 | $3,719 | $3,710 |
| Net earnings | $3,601 | $3,648 | $11,585 | $11,809 |
| Basic weighted average common shares | 993 | 991 | 992 | 990 |
| Basic earnings per share | $3.63 | $3.68 | $11.68 | $11.93 |
| Diluted weighted average common shares | 995 | 993 | 994 | 992 |
| Diluted earnings per share | $3.62 | $3.67 | $11.65 | $11.90 |
| November 2, 2025 | October 27, 2024 | February 2, 2025 | |
|---|---|---|---|
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $1,684 | $1,531 | $1,659 |
| Receivables, net | $6,765 | $5,782 | $4,903 |
| Merchandise inventories | $26,203 | $23,897 | $23,451 |
| Other current assets | $1,463 | $1,739 | $1,670 |
| Total current assets | $36,115 | $32,949 | $31,683 |
| Net property and equipment | $27,683 | $26,573 | $26,702 |
| Operating lease right-of-use assets | $9,041 | $8,521 | $8,592 |
| Goodwill | $22,267 | $19,428 | $19,475 |
| Intangible assets, net | $10,416 | $9,112 | $8,983 |
| Other assets | $752 | $681 | $684 |
| Total assets | $106,274 | $97,264 | $96,119 |
| Liabilities and Stockholders’ Equity | |||
| Current liabilities: | |||
| Short-term debt | $3,200 | $1,344 | $316 |
| Accounts payable | $13,237 | $13,506 | $11,938 |
| Accrued salaries and related expenses | $2,245 | $2,094 | $2,315 |
| Current installments of long-term debt | $6,471 | $3,176 | $4,582 |
| Current operating lease liabilities | $1,417 | $1,262 | $1,274 |
| Other current liabilities | $7,797 | $7,710 | $8,236 |
| Total current liabilities | $34,367 | $29,092 | $28,661 |
| Long-term debt, excluding current installments | $46,343 | $50,058 | $48,485 |
| Long-term operating lease liabilities | $7,986 | $7,538 | $7,633 |
| Other long-term liabilities | $5,462 | $4,790 | $4,700 |
| Total liabilities | $94,158 | $91,478 | $89,479 |
| Total stockholders’ equity | $12,116 | $5,786 | $6,640 |
| Total liabilities and stockholders’ equity | $106,274 | $97,264 | $96,119 |