The Home Depot 2026 Q3 Earnings Revenue Rises 2.8% as EPS Falls 1.4%

The Home Depot (HD) reported fiscal 2026 Q3 earnings on Nov 17, 2025, with revenue exceeding estimates but EPS falling short. The company updated FY25 guidance, projecting ~3.0% sales growth and a ~5.0% adjusted EPS decline, reflecting ongoing macroeconomic challenges.

Revenue

Home Depot’s total revenue increased by 2.8% to $41.35 billion in 2026 Q3, surpassing the $40.22 billion recorded in the same period in 2025. This growth was driven by the recent acquisition of GMS Inc., which contributed approximately $900 million in incremental sales.

Earnings/Net Income

The company’s EPS declined 1.4% to $3.63 in 2026 Q3 from $3.68 in 2025 Q3, while net income dropped 1.3% to $3.60 billion from $3.65 billion. Despite a resilient 20-year profitability streak, the 1.4% EPS decline signals ongoing operational challenges.

Price Action

Home Depot’s stock price has declined 0.86% in the latest trading day, 3.35% over the past week, and 7.58% month-to-date, reflecting investor caution amid macroeconomic uncertainties.

Post-Earnings Price Action Review

The strategy of buying Home Depot shares after a revenue raise on the financial report release date and holding for 30 days yielded a 5% return based on a simple average over the past three years. A $1,000 investment would have grown to $1,050, generating a $50 profit. While this suggests resilience in holding periods, the conservative return highlights the strategy’s limitations in capturing short-term volatility.

CEO Commentary

Ted Decker, CEO, attributed the results to lower-than-anticipated storm activity, delayed demand growth, and housing market pressures. He emphasized stable sequential demand and team execution but acknowledged persistent challenges from macroeconomic factors.

Guidance

Home Depot updated its FY25 guidance, projecting total sales growth of ~3.0% (with $2.0B from GMS), slightly positive comparable sales, and a ~5.0% decline in adjusted EPS. Risks include fourth-quarter storm activity, consumer sentiment, and housing market dynamics.

Additional News

1. M&A Activity: The GMS acquisition contributed $900 million in Q3 sales, boosting total revenue.

2. Legal Victory: Home Depot won a court ruling upholding its policy against employees displaying “Black Lives Matter” on work aprons, though the impact on stock price remains limited.

3. Consumer Demand Caution: CEO Ted Decker highlighted ongoing housing market pressures and consumer uncertainty, which disproportionately affect home improvement demand.