The nation’s largest home improvement retailer exceeded Wall Street projections for its latest quarter while keeping its yearly outlook steady, buoyed by consistent business from construction professionals and homeowners choosing smaller repairs over major renovations.
Home Depot’s stock climbed nearly 3% during early Tuesday trading following the earnings announcement.
The Atlanta-based company has increasingly focused on professional contractors, builders, and carpenters whose ongoing construction projects have helped balance the decline in major do-it-yourself renovations as high interest rates and a sluggish housing market impact consumer spending.
The retailer has introduced new financing options and project management resources designed to help professional customers handle larger and more complicated jobs, while expanding assistance through its field sales team.
Chief Executive Ted Decker noted the quarter’s performance aligned with company projections. “For the fourth quarter, our results were largely in-line with our expectations, reflecting the lack of storm activity in the third quarter and ongoing consumer uncertainty and pressure in housing,” Decker stated.
Competitor Lowe’s, scheduled to release its quarterly report Wednesday, saw its shares rise 1% following Home Depot’s announcement.
The company recorded a 0.4% increase in comparable store sales during the three-month period ending February 1, beating analyst predictions of essentially flat performance, based on LSEG data.
Market analyst Michael Gunther from Consumer Edge Research observed a shift in customer behavior. “In Q4, performance trends suggest consumers are prioritizing repair and upkeep over big-ticket remodel activity,” Gunther explained.
The retailer posted adjusted earnings of $2.72 per share, exceeding the $2.54 analyst consensus estimate.
While the average purchase amount per customer visit rose 2.4% to $91.28 compared to the previous year’s fourth quarter, total customer transactions dropped 8.5% to 366.5 million visits.
Home Depot kept its fiscal 2026 projections intact, anticipating comparable sales growth between flat and 2% higher, with adjusted earnings per share expected to remain steady or increase up to 4% year-over-year.
