Why did HD's Q3 2025 earnings exceed forecasts significantly?

The Home Depot's Q3 2025 earnings exceeded forecasts significantly due to several key factors:

1. **Revenue Growth**: The company reported a revenue of $40.2 billion for the quarter, which represents a 6.6% increase from the same period in the previous year. This growth was primarily driven by an increase in customer traffic and higher spending per order, both in-store and online.
2. **Strategic Initiatives**: Home Depot's focus on enhancing its store experience and accelerating growth with professional customers has been beneficial. The company's investments in digital capabilities and its loyalty program have also contributed to its performance.
3. **Acquisitions**: The acquisition of SRS Distribution has been a significant factor in Home Depot's revenue growth. SRS contributed $6.4 billion in sales, which reflected approximately six weeks of sales within the quarter. This acquisition has accelerated growth with professional customers and has been a strategic move to strengthen Home Depot's position in the market.
4. **Market Conditions**: Despite the challenges posed by high interest rates and a cautious consumer, Home Depot has benefited from a shift in consumer behavior. Many homeowners are choosing to undertake home improvement projects instead of waiting for rates to drop, which has positively impacted Home Depot's sales.

In summary, Home Depot's Q3 2025 earnings exceeded forecasts due to strong revenue growth, strategic initiatives, acquisitions, and favorable market conditions. These factors have collectively contributed to the company's robust financial performance.