Home Depot Prints a “Good Enough” Quarter — Stock Pops 2.3% as the Bar Was on the Floor
Home Depot didn’t deliver a housing comeback story. It delivered stability, and in this tape that’s enough to get a +2.3% pre‑market move. The quarter beat muted expectations, and the company’s FY2026 range basically says: steady repairs, steady Pros, no miracle required.
Home Depot (HD)
Financial Score: 98 / 99
Quick Tip
To keep your portfolio strong, stay on top of the financials for each company you hold. Solid companies mean better returns, so be sure to check in on their quarterly and annual numbers.
Interesting stocks usually score 80+ on the Financial Scale, with top players hitting 90+. If that score dips below 80, it might be a good time to consider cutting ties before things take a turn.
Q4 Scorecard: EPS Beat, Revenue Squeaks By
For the quarter ended Feb. 1, adjusted EPS came in at $2.72 vs $2.53 expected. Reported net income was $2.57B (or $2.58 per share), down from $3.0B a year ago, but last year had an extra trading week worth about $0.30 per share—that’s the big “apples-to-apples” adjustment. Revenue was $38.2B vs $38.09B expected, with the year‑over‑year decline largely tied to that same calendar quirk.
Comps: +0.4% Is Not a Boom — It’s a Pulse
Same‑store sales rose 0.4% overall and 0.3% in the U.S. Transactions fell 1.6%, but average ticket moved up to $91.28 from $89.11. Translation in plain investor slang: fewer carts, bigger baskets—repairs and “must‑do” projects still spending, “nice‑to‑have” projects still getting delayed.
What Dragged: Fewer Storm Jobs, Same Weak Housing Tape
CEO Ted Decker pointed to sluggish storm activity in Q3 and persistent housing weakness as the main headwinds. Macro is not helping: existing U.S. home sales fell 8.4% in January to the slowest annualized pace in more than two years. Consumer confidence also hit its lowest reading since 2014 in January, which matters because big remodels are confidence trades.
FY2026 Guidance: Small Growth, Tight EPS Range
For fiscal 2026, Home Depot guided total sales growth of 2.5% to 4.5%. Adjusted EPS is expected to be roughly flat to up 4% versus last year’s $14.69. That’s a “keep grinding” plan: stay anchored in Pro demand, push smaller-ticket repair/maintenance work, and keep the cost structure tight until housing turnover wakes up.
Someone’s sitting in the shade today because someone planted a tree a long time ago. ― Warren Buffett.
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