Home Depot Misses Q2 Earnings by $0.01 Amid Flat Revenue Growth

The Home Depot’s second-quarter earnings report for fiscal 2025 fell just short of expectations, raising concerns among investors. The company reported non-GAAP earnings per share (EPS) of $4.68, falling $0.01 below the $4.71 forecast by analysts [1]. Meanwhile, revenue for the quarter came in at $45.28 billion, meeting expectations [1]. The performance highlights a modest but notable earnings miss, signaling potential challenges amid a complex economic environment.

GAAP earnings for the quarter totaled $4.58 per diluted share, a slight decline compared to $4.60 per share in the same period last year [2]. Adjusted earnings, however, rose marginally to $4.68 per share. The company reported a 4.9% year-over-year revenue increase, reaching $45.27 billion [2], which demonstrates continued top-line growth but also points to underlying profitability pressures.

Analysts had expected stronger results, with forecasts ranging between $4.69 and $4.71 per share [3][4]. While the revenue figure aligns with projections, the EPS shortfall raises questions about the sustainability of profit growth in the near term. The slight earnings miss may be an early indicator of shifting consumer behavior and broader inflationary pressures impacting the retail sector.

The results place The Home Depot in a similar context to other major retailers like Walmart and Target, whose recent earnings reports have shown mixed outcomes [5]. These companies are seen as key indicators of overall consumer spending trends, and The Home Depot’s performance is likely to be closely scrutinized in the coming weeks.

Despite the earnings miss, The Home Depot reaffirmed its fiscal 2025 guidance, projecting total sales growth of approximately 2.8% and comparable sales growth of around 1.0%. The company also plans to open 13 new stores, signaling a commitment to expanding its retail footprint. Management remains confident in its strategic direction, citing the popularity of smaller home improvement projects as a key growth driver [2].

The earnings results have implications beyond the stock itself, as The Home Depot is included in over 400 ETFs [1]. A deviation from expected outcomes can trigger market reactions, particularly given the company’s large market capitalization and influence in the retail sector. Investors and analysts are likely to monitor the company’s performance closely in the near future.

Sources:

[1] Earnings Snapshot: Home Depot falls short of Q2 estimates (https://seekingalpha.com/news/4486866-earnings-snapshot-home-depot-falls-short-of-q2-estimates-sales-outlook-misses)

[2] The Home Depot, Inc. Announces Retreat In Q2 Profit (https://www.rttnews.com/3567210/the-home-depot-inc-announces-retreat-in-q2-profit.aspx)

[3] How To Earn $500 A Month From Home Depot Stock (https://www.aol.com/earn-500-month-home-depot-141913844.html)

[4] Ross Stores Q2 Earnings Upcoming: Will It Surprise Investors (https://www.nasdaq.com/articles/ross-stores-q2-earnings-upcoming-will-it-surprise-investors)

[5] Earnings live: Retail bellwethers Walmart, Target, Home Depot... (https://finance.yahoo.com/news/live/earnings-live-retail-bellwethers-walmart-target-home-depot-and-lowes-on-deck-to-report-results-203206695.html)