Home Depot reports weaker Q4 profit, lifts dividend

US location betterment retailer Home Depot has announced its fourth-quarter (Q4) and full-year fiscal 2025 (FY25) results, alongside a tiny summation successful its quarterly dividend and guidance for FY26.

For the 3 months ended 1 February 2026, nett income totalled $38.2bn, a 3.8% diminution from the corresponding play a twelvemonth earlier.

Net net were $2.57bn, compared with $3bn successful the prior-year quarter.

In Q4, comparable income edged up 0.4% wide and 0.3% successful the US. The reporting play comprised 13 weeks compared with 14 weeks successful fiscal 2024.

Cost of income fell 3.5% year-on-year to $25.73bn, resulting successful gross nett of $12.46bn, down 4.4%.

Selling, wide and administrative (SG&A) expenses roseate 0.6% to $7.77bn.

Operating income dropped 14.4% to $3.84bn portion net earlier income taxes declined 15.2% to $3.29bn.

Diluted net per stock were $2.58, versus $3.02 a twelvemonth earlier.

The further 14th week successful fiscal 2024 contributed astir $0.30 to diluted net per stock successful some the 4th and afloat year.

Adjusted diluted net per stock were $2.72, compared with $3.13 successful the erstwhile year, reflecting the aforesaid 14-week effect.

For the afloat fiscal twelvemonth ended 1 February 2026, nett income accrued 3.2% to $164.68bn from $159.51bn.

Cost of income reached $109.81bn, up 3.4%, portion gross nett grew 2.9% to $54.86bn. SG&A expenses roseate 6.8% to $30.70bn.

Operating income for the twelvemonth decreased 3% to $20.89bn, and net earlier income taxes fell 4.1% to $18.60bn.

Net net declined 4.4% to $14.15bn from $14.80bn.

Separately, the committee approved a 1.3% summation successful the quarterly dividend to $2.33 per share, equivalent to an yearly dividend of $9.32 per share.

Home Depot chair, president and CEO Ted Decker said: “Throughout fiscal 2025, our teams did an unthinkable occupation engaging with our customers and increasing marketplace share, and I would similar to convey them for their hard enactment and dedication.

"For the 4th quarter, our results were mostly successful enactment with our expectations, reflecting the deficiency of tempest enactment successful the 3rd 4th and ongoing user uncertainty and unit successful housing. Adjusting for storms, underlying request was comparatively unchangeable passim the year.”

For FY26, Home Depot expects full income to turn astir 2.5% to 4.5%, with comparable income projected to scope from level to 2%.

The retailer plans to unfastened astir 15 caller stores and anticipates a gross borderline of 33.1%.

Operating borderline is forecast astatine astir 12.4% to 12.6%, oregon 12.8% to 13% connected an adjusted basis.

The institution besides expects an effectual taxation complaint of astir 24.3%, nett involvement disbursal of astir $2.3bn and diluted net per stock maturation ranging from level to 4% from $14.23 successful fiscal 2025.