How did Home Depot's revenue trends shift in Q4 2025?

Home Depot's revenue trends in Q4 2025 showed a notable shift with significant year-over-year growth, but a cautious outlook for the upcoming fiscal year. 1. **Q4 2024 Performance**: - Home Depot reported fourth-quarter sales of $39.70 billion, surpassing expectations with a 14.1% year-over-year increase. - The company's adjusted EPS was $3.13, exceeding forecasts, indicating a 9.4% year-over-year growth. - Customer transactions rose by 7.6%, and comparable U.S. sales increased by 1.3%, marking the first positive comparable sales after eight quarters of decline. 2. **Gross Profit and Margin**: - Gross profit for the quarter rose by 13.3% year-over-year to $13.03 billion, with a margin of 32.8%, although this was down 25 basis points year-over-year due to mix changes from the SRS acquisition. - Operating income for the quarter increased by 8.5% to $4.495 billion. 3. **2025 Outlook and Adjustments**: - Despite the strong Q4 performance, Home Depot projected a softer outlook for 2025, expecting total sales growth of approximately 2.8%. - The forecast for adjusted EPS decline by about 2% from the previous year's $15.24 to $14.94, missing the consensus estimate of $15.57. - Comparable sales were predicted to increase by only 1%, and the company anticipated mid-single-digit organic growth for SRS in fiscal 2025. 4. **Dividend and Shareholder Returns**: - Home Depot announced a 2.2% increase in its quarterly dividend to $2.30 per share, totaling an annual dividend of $9.20 per share. - The dividend is payable on March 27, 2025, to shareholders of record as of March 13, 2025. In conclusion, Home Depot's revenue trends in Q4 2025 showed robust performance with strong sales growth and EPS exceeding expectations. However, the outlook for 2025 has raised concerns with projected EPS decline and missing consensus estimates, indicating a cautious outlook for the coming fiscal year.