The Home Depot, the leading home improvement retailer globally, disclosed its financial performance for the fourth quarter and fiscal year 2025 on February 24, 2026, in Atlanta. The company recorded a fourth-quarter sales figure of $38.2 billion, marking a decline of $1.5 billion compared to the same period in fiscal 2024. This drop of 3.8% stems from a reduction in the number of operational weeks compared to the prior year.
"Throughout fiscal 2025, our teams did an incredible job engaging with our customers and growing market share, and I would like to thank them for their hard work and dedication," said Ted Decker, chair, president, and CEO. Although sales declined, comparable sales only saw a slight increase of 0.4%, aided by a 0.3% rise in the U.S. market.
The net earnings for the fourth quarter sat at $2.6 billion, which translates to $2.58 per diluted share. This represents a decrease from net earnings of $3.0 billion, or $3.02 per diluted share, during the same timeframe in fiscal 2024. Adjusted diluted earnings for the quarter fell as well, with figures showing $2.72 compared to $3.13 a year prior.
A contributing factor to these changes was the absence of the additional week that enhanced revenues in Fiscal 2024. "The 14th week in fiscal 2024 added approximately $2.5 billion of sales to the fourth quarter and year," Decker noted.
Overall, sales for fiscal 2025 increased to $164.7 billion—up by $5.2 billion, or 3.2% from fiscal 2024. This growth was supported by a comparable sales increase of 0.3% and a slightly stronger performance of 0.5% in the U.S.
Despite these successes, net earnings from fiscal 2025 fell to $14.2 billion, equal to $14.23 per diluted share while adjusted diluted earnings also decreased to $14.69 from $15.24 the previous year.
On the dividend front, The Home Depot's board of directors approved a 1.3% increase in its quarterly dividend, bringing it to $2.33 per share. This adjustment results in an annual dividend of $9.32 per share, payable on March 26, 2026. Decker emphasized, "This is the 156th consecutive quarter the Company has paid a cash dividend," reaffirming their commitment to returning value to shareholders.
Looking ahead, The Home Depot outlined guidance for fiscal 2026, projecting capital expenditures at approximately 2.5% of total sales. Expectations regarding diluted earnings-per-share growth range from flat to approximately 4.0% above the figures reported for 2025. Other forecasts include a net interest expense of about $2.3 billion and an effective tax rate near 24.3%.
"We expect to open approximately 15 new stores and anticipate comparable sales growth of around flat to 2.0% for the coming year, with total sales growth anticipated between 2.5% and 4.5%," Decker detailed further.
The Home Depot operates a significant retail presence, with 2,359 stores, providing employment for over 470,000 associates across various locations including all 50 states, Puerto Rico, and parts of Canada and Mexico. The stock is publicly traded on the New York Stock Exchange under the ticker symbol HD and is a component of the Dow Jones industrial average and the S&P 500 index.
In a landscape marked by challenges such as fluctuating consumer confidence and housing pressures, The Home Depot’s results for fiscal 2025 reveal both resilience and caution. As the company aims to stabilize and navigate upcoming market conditions, its commitment to shareholder returns remains evident through its dividend strategy and operational outlook.