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Earnings · Economic Uncertainty · Home Depot · Home Improvement
Home Depot reported a decrease in fourth-quarter profit, with net income falling to $2.6 billion, or $2.58 per share, compared to $3 billion, or $3.02 per share, in the prior year.
Despite this profit decline, the company's sales of $38.2 billion were slightly down by 3.8% but exceeded Wall Street's expectations. Comparable sales saw a modest increase of 0.4%.
The company maintained its fiscal 2026 guidance, projecting flat to 2% comparable sales growth and flat to 4% adjusted earnings-per-share growth. Home Depot attributes the downturn in home improvement activity to economic uncertainty, elevated interest rates, and a sluggish housing market, which are causing homeowners to postpone remodeling projects and discretionary upgrades.
Home Depot Navigates Housing Headwinds as Q4 Profit Drops, Sales Exceed Forecasts(current)