The Home Depot, Inc. (HD) Financial Analysis

Updated 25 September 2026 · Covers results through Q2 FY2027 · How this is made

Snapshot

The Home Depot generated $164.7 billion of revenue in FY2026, with gross profit of $54.9 billion in FY2026, operating income of $20.9 billion in FY2026, and net income of $14.2 billion in FY2026. Diluted EPS was $14.23 in FY2026.

The trailing twelve months to Q2 FY2027 included $169.2 billion of revenue, $14.2 billion of net income, $18.8 billion of operating cash flow, and $15.1 billion of free cash flow. In Q2 FY2027, revenue was $47.9 billion, gross profit was $16.1 billion, operating income was $6.8 billion, and net income was $4.8 billion. Diluted EPS was $4.79 in Q2 FY2027.

Growth

Revenue reached $164.7 billion in FY2026, compared with $159.5 billion in FY2025, and revenue growth was 3.24% in FY2026 against FY2025. Revenue compound annual growth was 1.52% in FY2023–FY2026 and 4.51% in FY2021–FY2026.

Diluted EPS was $14.23 in FY2026, compared with $14.91 in FY2025, with diluted EPS growth of −4.56% in FY2026 against FY2025. Diluted EPS compound annual growth was −5.18% in FY2023–FY2026 and 3.57% in FY2021–FY2026. Free cash flow was $12.6 billion in FY2026, and free cash flow growth was −22.5% in FY2026 against FY2025. In Q2 FY2027, revenue changed 5.71% and diluted EPS changed 4.59% from Q2 FY2026, while free cash flow changed 21.0% from Q2 FY2026.

Profitability

Gross margin was 33.3% in FY2026, a change of −0.1 percentage points in FY2025–FY2026 and −0.6 percentage points in FY2021–FY2026. Operating margin was 12.7% in FY2026, down −0.8 percentage points in FY2025–FY2026 and −1.2 percentage points in FY2021–FY2026.

Pre-tax margin was 11.3% in FY2026, with a change of −0.9 percentage points in FY2025–FY2026 and −1.6 percentage points in FY2021–FY2026. Net margin was 8.60% in FY2026, with a change of −0.7 percentage points in FY2025–FY2026 and −1.1 percentage points in FY2021–FY2026. Return on assets was 14.1% in FY2026, return on invested capital was 19.4% in FY2026, and return on equity was 145.5% in FY2026. Industry-median comparisons are not reported.

Balance sheet

Total debt was $55.8 billion in FY2026, compared with $53.4 billion in FY2025, while net debt was $54.4 billion in FY2026, compared with $51.7 billion in FY2025. Cash and short-term investments were $1.4 billion in FY2026, compared with $1.7 billion in FY2025.

Shareholders’ equity was $12.8 billion in FY2026, compared with $6.6 billion in FY2025, and book value per share was $12.90 in FY2026. Working capital was $2.0 billion in FY2026. At Q2 FY2027, the current ratio was 1.1× and debt to equity was 3.2×. Net debt was $50.8 billion in Q2 FY2027, following $54.4 billion in FY2026.

Cash flow & capital return

Operating cash flow was $16.3 billion in FY2026, compared with $19.8 billion in FY2025, and operating cash flow growth was −17.6% in FY2026 against FY2025. Capital expenditure was $3.7 billion in FY2026, compared with $3.5 billion in FY2025. Free cash flow was $12.6 billion in FY2026, compared with $16.3 billion in FY2025, and represented 89.3% of net income in FY2026.

Dividends paid were $9.2 billion in FY2026, compared with $8.9 billion in FY2025. Net share repurchases were −$314.0 million in FY2026, following $254.0 million in FY2025. Capital returned to shareholders was $8.8 billion in FY2026 and $69.7 billion in FY2022–FY2026. Weighted average shares were 993.0 million shares in FY2026, and the share-count change was −7.54% in FY2021–FY2026.

Valuation

As of September 24, 2026, market capitalisation was $290.4 billion. The P/E was 20.4× as of September 24, 2026, below the five-year median of 23.6× as of September 24, 2026, over the five fiscal years to FY2026, and below the ten-year median of 22.9× as of September 24, 2026, over the ten fiscal years to FY2026.

The P/S was 1.7× as of September 24, 2026, below both the five-year median of 2.3× as of September 24, 2026, over the five fiscal years to FY2026, and the ten-year median of 2.3× as of September 24, 2026, over the ten fiscal years to FY2026. EV/Sales was 2.0× as of September 24, 2026, below the five-year median of 2.6× and the ten-year median of 2.6× as of September 24, 2026. EV/Cash flow was 22.6× as of September 24, 2026, below the five-year median of 30.3× and the ten-year median of 25.4× as of September 24, 2026. Industry-median comparisons are not reported.

What changed since last quarter

Revenue was $47.9 billion in Q2 FY2027, compared with $41.8 billion in Q1 FY2027, a change of 14.6% in Q2 FY2027 against Q1 FY2027. Diluted EPS was $4.79 in Q2 FY2027, compared with $3.30 in Q1 FY2027, a change of 45.2% in Q2 FY2027 against Q1 FY2027. Free cash flow was $4.5 billion in Q2 FY2027, a change of −13.1% in Q2 FY2027 against Q1 FY2027.

Gross margin was 33.7% in Q2 FY2027, changing 0.7 percentage points from Q1 FY2027, while operating margin was 14.3% in Q2 FY2027, changing 2.4 percentage points from Q1 FY2027. Against Q2 FY2026, revenue changed 5.71%, diluted EPS changed 4.59%, free cash flow changed 21.0%, gross margin changed 0.3 percentage points, and operating margin changed −0.2 percentage points in Q2 FY2027. No management explanation for these changes is reported.

Open questions

What accounts for the decline in operating, pre-tax, and net margins over the five years to FY2026?
What factors drove the rise in total debt and net debt between FY2024 and FY2026?
Why did free cash flow decline in FY2026 while capital expenditure increased?
What explains the difference between revenue growth and net income growth in the trailing twelve months to Q2 FY2027?

This page is for information only. It is not investment advice, a recommendation or an offer to buy or sell any security. Figures may contain errors; verify against the company's filings.