Home Depot reported fourth-quarter earnings that exceeded Wall Street expectations, even as the company acknowledged ongoing challenges stemming from a cooling housing market and cautious consumer spending, according to a company statement released Tuesday.
The Atlanta-based home improvement retailer earned $2.57 billion, or $2.58 per share, for the three months ending February 1. This figure compares to earnings of $3 billion, or $3.02 per share, during the same period last year. However, the prior-year quarter included an extra week of sales, which added approximately 30 cents per share to the 2024 results. Adjusted earnings reached $2.72 per share, surpassing the $2.53 per share predicted by analysts surveyed by FactSet.
Revenue for the quarter totaled $38.2 billion, a decrease from $39.7 billion in the previous year. The extra week of sales in the prior-year period contributed roughly $2.5 billion to that earlier figure. Wall Street had forecast revenue of $38.09 billion.
Sales at stores open for at least a year—a key metric for retail health—increased by 0.4%. Comparable sales within the U.S. Rose 0.3%. Customer transactions decreased by 1.6% during the quarter, while the average transaction amount increased to $91.28 from $89.11 a year earlier.
“Our fourth quarter 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,” said Ted Decker, chair, president, and CEO of Home Depot. “Adjusting for storms, underlying demand was relatively stable throughout the year.”
The results come as the broader housing market continues to grapple with elevated interest rates, impacting both home sales and renovation projects. Reuters reported on February 24, 2026, that Home Depot’s performance indicated a continued sensitivity to these economic conditions.
Despite the earnings beat, Home Depot’s stock price declined by 3.33% on Tuesday, closing at $371.67, down $12.81. The company did not provide specific guidance for the upcoming fiscal year during its earnings call.
