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- **Revenue Growth**: Q3 sales +3% YoY ($41.4B), but comps (+0.2%) miss due to storm absence and housing pressure.
- **Margin Headwinds**: FY2025 adjusted EPS expected to decline 5% YoY, driven by GMS integration costs and storm impact.
- **Strategic Moves**: GMS acquisition to boost Pro segment; online comps +11% YoY, faster delivery driving engagement.
- **Risks**: Housing market softness and consumer uncertainty weigh on home improvement demand; 2024 storm-related sales to lap in Q4.

**【CEO Summary Section】**
- Q3 2025 sales: $41.4 billion (+3% YoY), comps +0.2% (U.S. +0.1%). Missed expectations due to lack of storms and housing pressure.
- Acquired GMS, a specialty building products distributor, to enhance Pro segment capabilities.
- Underlying demand stable sequentially, but storm-impacted categories (e.g., roofing, plywood) underperformed.
- Reiterated focus on controlling costs and investing in customer value proposition.

**【CFO Financial Commentary】**
- Adjusted EPS: $3.74 (-1.1% YoY). GAAP EPS: $3.62 (-1.4% YoY).
- Gross margin: 33.4% (flat YoY). Operating margin: 12.9% (-0.6% YoY) due to GMS transaction costs and storm impact.
- Inventory: $26.2 billion (+9.1% YoY), driven by investments in faster delivery and GMS integration.
- FY2025 guidance: Total sales +3%, comps slightly positive, adjusted EPS -5% YoY.

**【Q&A Highlights】**
- **Storm Impact**: Q3 comps -1.5% in October due to lack of storms; Q4 will lap 14 weeks of storm-related sales from 2024.
- **Margin Dilution**: GMS adds ~20bps to operating margin dilution; SRS adds ~40bps, offset by ~50bps from transaction costs.
- **Pro Growth**: SRS comps flat Q3, but taking share in roofing market; GMS expected to contribute $2 billion in FY2025 sales.
- **Consumer Trends**: Housing turnover at 40-year low (2.9%), home prices adjusting in key markets, but DIY demand resilient.
- **Cross-Selling**: SRS and GMS teams sharing leads, e.g., roofing sales to SRS and drywall to GMS, driving incremental Pro sales.


The Home Depot, Inc. (HD) Q3 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

HD

HD fundamentals

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