What it does
The company states that it sells home improvement products, building materials, lawn and garden products, décor products, and facilities MRO products through stores and online. It also provides installation services and tool and equipment rental. Its store business operates in the U.S., Canada, and Mexico, while SRS distributes specialty building products to trade customers through four lines of business: roofing and building products, interior and construction products, landscape, and pool. The filing says SRS’s operating segments are not reportable segments.
Source: The Home Depot, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
How it makes money
The company generates net sales principally from products and, to a smaller extent, services. The segment table below shows Primary segment revenue of $152.0 billion in FY2026 and Other revenue of $12.7 billion. The filing describes the U.S., Canada, and Mexico geographic operating segments as aggregated into the Primary segment. It also says SRS has four operating segments, but none is a reportable segment. Product net sales were $159.0 billion and services net sales were $5.7 billion in FY2026.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Net sales – products | $153.7 billion | — | — |
| Net sales – services | $5.8 billion | — | — |
Source: The Home Depot, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Customers and geography
The filing identifies two primary customer groups: consumers, including DIY and DIFM customers, and Pros. DIY customers are generally homeowners completing their own projects; DIFM customers use Pros for projects or installations. Pros include renovators, contractors, homebuilders, maintenance professionals, property managers, and specialty tradespeople. The company operated stores and digital properties in the U.S., Canada, and Mexico, and SRS locations in the U.S. and Canada. FY2026 revenue was $152.2 billion in the U.S. and $12.5 billion outside the U.S.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| In the U.S. | $147.0 billion | — | — |
| Outside the U.S. | $12.5 billion | — | — |
Source: The Home Depot, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Competition
The company describes its industry as highly competitive, highly fragmented, and evolving. The filing does not name individual competitors. Instead, it lists retailers, reseller marketplaces, suppliers, service providers, distributors, manufacturers, hardware stores, supply houses, lumber yards, specialty and mass digital retailers, warehouse clubs, MRO distributors, and home-improvement service and rental providers. The company states that it competes primarily on customer experience, price, quality, product availability, assortment and innovation, and delivery options and capabilities.
Source: The Home Depot, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov
Key risks
- Damage to the company’s brand and reputation could negatively affect relationships and its business, results of operations, and stock price.
- The company may not timely identify or effectively respond to customer needs, expectations, or trends.
- Executing its interconnected experience requires continual investment and the development and execution of new processes, systems, and support.
- A failure of key technology infrastructure, associated systems, or processes could adversely affect the business, financial results, and reputation.
- The evolving cybersecurity threat landscape requires continual evaluation and adaptation of systems, processes, and the security environment.
- Adverse conditions or uncertainty in housing and home-improvement markets and broader economic, political, social, or public-health conditions could affect demand, costs, and financial performance.
Source: The Home Depot, Inc. Form 10-K for fiscal 2025, Item 1A — sec.gov
People and operations
At the end of fiscal 2025, the company employed 472,400 associates, including approximately 53,400 salaried associates; the remainder were hourly. It operated 2,359 stores, supported by distribution and fulfillment centers, mobile applications, and e-commerce websites. The filing says Home Depot stores average approximately 104,000 square feet of enclosed space and approximately 24,000 square feet of outside garden area. SRS, including GMS, operated over 1,250 locations in the U.S. and Canada. The business is seasonal: its highest sales volume generally occurs in the second fiscal quarter as spring begins in its operating regions.
Source: The Home Depot, Inc. Form 10-K for fiscal 2025, Item 1 — sec.gov