Home Depot Reports Q4 & FY25 Results, Increases Dividend, Provides FY26 Guidance
Summary
Home Depot announced Q4 and fiscal year 2025 results, including a 0.4% comparable sales increase for Q4, a 1.3% dividend hike, and provided fiscal 2026 guidance for modest growth.
Key Events
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Q4 & Fiscal Year 2025 Financial Results
Fourth quarter 2025 sales were $38.2 billion, a 3.8% decrease from Q4 2024, primarily due to Q4 2024 having an extra week. Comparable sales for the quarter increased by 0.4%. Diluted EPS was $2.58, down from $3.02 in the prior year. Fiscal year 2025 sales increased 3.2% to $164.7 billion, with diluted EPS of $14.23.
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Quarterly Dividend Increased
The Board of Directors approved a 1.3% increase in the quarterly dividend to $2.33 per share, equating to an annual dividend of $9.32 per share. The dividend is payable on March 26, 2026, to shareholders of record on March 12, 2026.
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Fiscal Year 2026 Guidance Provided
The company expects total sales growth of approximately 2.5% to 4.5% and comparable sales growth of approximately flat to 2.0%. Diluted earnings-per-share are projected to grow approximately flat to 4.0% from fiscal 2025's $14.23.
Analysis
The Home Depot reported fourth quarter and fiscal year 2025 results that were largely in line with expectations, despite a year-over-year decline in Q4 sales and earnings. This decline is primarily attributed to the prior year's fourth quarter having an extra week, which contributed approximately $2.5 billion in sales and $0.30 to diluted EPS. Crucially, comparable sales for Q4 2025 increased by 0.4%, indicating underlying business strength. The company also announced a 1.3% increase in its quarterly dividend, signaling confidence in its financial stability and commitment to shareholder returns. Fiscal 2026 guidance projects modest growth in sales and diluted earnings per share, suggesting a stable outlook for the coming year.
At the time of this filing, HD was trading at $388.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $375.3B. The 52-week trading range was $326.31 to $426.75. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.