High Rates Drive Home Depot's Q4 Revenue Down 3.9%, Analysts See Prolonged Headwinds

Analysts anticipate a 3.9% year-over-year revenue decrease, a reversal from previous growth. This downturn is attributed to high interest rates and elevated home prices, which are deterring home sales and subsequent renovation activity.

Despite some hopes for a rebound, industry headwinds are projected to persist into 2026. While store visits showed some short-term momentum, the overall outlook remains cautious, with several analysts adjusting price targets downwards.

The company's CFO indicated that a significant catalyst for housing activity has not yet emerged.