The Home Depot Reveals Q4 and FY2025 Results While Raising Dividend by 1.3%

The Home Depot Announces Q4 and FY2025 Results

The Home Depot, reputed as the world's largest home improvement retailer, has recently unveiled its financial results for the fourth quarter and the entire fiscal year of 2025. This announcement, made on February 24, 2026, marks a significant moment as it includes plans for a 1.3% increase in quarterly dividends, alongside a revised sales outlook for the upcoming fiscal year 2026.

Q4 2025 Financial Overview

In the fourth quarter of fiscal 2025, The Home Depot reported net sales of $38.2 billion. This reflects a decrease of $1.5 billion or 3.8% from the previous year’s fourth quarter, which had a higher sales volume due to an additional week of trading. This year, the quarter consisted of 13 weeks compared to the prior year's 14 weeks, which included an estimated $2.5 billion in extra sales from that additional week.

Comparable sales showed a modest increase of 0.4%, with U.S. comparable sales up by 0.3%. The net earnings for the quarter were reported at $2.6 billion, equivalent to $2.58 per diluted share, a decline from net earnings of $3 billion or $3.02 per share from the same quarter last year. Adjusting for the previous year’s extra week, diluted earnings adjusted for Q4 2025 were reported at $2.72 compared to $3.13 in Q4 2024.

Fiscal Year 2025 Summary

The overall results for fiscal year 2025 showed total sales of $164.7 billion, marking an increase of $5.2 billion or 3.2% year-over-year. Comparable sales for the year rose by 0.3%, with U.S. comparable sales climbing slightly higher at 0.5%. The fiscal year net earnings stood at $14.2 billion or $14.23 per diluted share, slightly down from net earnings of $14.8 billion or $14.91 per diluted share in fiscal 2024.

Adjusted diluted earnings per share for FY2025 were $14.69, down from $15.24 in the previous year.

Dividend Announcement

In a notable move, The Home Depot's board of directors approved an increase in the quarterly dividend to $2.33 per share, translating to an annual dividend of $9.32 per share. This is the company's 156th consecutive quarter of cash dividend payments, scheduled for distribution on March 26, 2026, to shareholders recorded by the close of business on March 12, 2026.

Guidance for FY2026

Looking ahead, The Home Depot has provided a cautiously optimistic guidance for fiscal 2026, predicting overall sales growth between 2.5% to 4.5%. Expectations for comparable sales growth range from flat to 2.0%, alongside plans for approximately 15 new store openings. The company aims for a gross margin of 33.1% and an operating margin ranging from 12.4% to 12.6%.

The effective tax rate is anticipated to be about 24.3%, with net interest costs projected at $2.3 billion. The diluted earnings per share are expected to increase by 0% to 4% compared to the previous fiscal year’s $14.23, alongside adjusted diluted earnings anticipated to follow a similar growth trajectory.

Additionally, capital expenditures are projected to be about 2.5% of total sales, reflecting The Home Depot’s ongoing commitment to growth and reinvestment in its business.

Conclusion

In conclusion, The Home Depot has navigated through challenges over the past fiscal year yet managed to maintain a steady growth trajectory, underlined by careful management and strategic planning. With an emphasis on customer engagement and market expansion, the future looks promising as they embark on fiscal 2026 with renewed goals.

Following this release, a conference call will be held today at 9:00 AM ET to discuss these results and other relevant matters, marking another opportunity for stakeholders to engage directly with company leadership.