Home DepotWide moat

HD — overall economic moat

Investment snapshot
Wide moat→ Holding steadyConfidenceMediumValuationFair
Strongest advantageAn owned store network of 2,359 stores and a pricing power that held gross margin near 33% through three years of flat or falling comparable sales
Greatest threatA core that has stopped growing: Primary sales flat since fiscal 2023, with all growth bought through SRS and GMS at a 2.5% margin, while housing turnover stays at historic lows
Key metricPrimary segment sales growth (+1.5% in Q2 fiscal 2026) and the Other segment's operating margin (4.9%)
Verdict: Home Depot still owns the best store network in its trade, and its customers pay more each year without leaving. But the stores have not grown since fiscal 2023, returns on capital have almost halved from their peak, and the growth now comes from distributors bought with debt that earn a fifth of the stores' margin. At about 20 times earnings, near its 52-week low, the price already allows for a slow core; it does not allow for a housing recovery or for the distributors earning more.
📈 HD valuation, revenue & earnings — P/E, P/S, revenue, EPS →

Home Depot sells the materials, tools and appliances that go into houses, and it calls itself the world's largest home improvement retailer1. It was incorporated in Delaware in 1978 and is based in Atlanta2, runs 2,359 stores in the United States, Canada and Mexico3, and employs about 472,400 people4.

Net sales by fiscal year ($bn)88.5FY2015110.2FY2019132.1FY2020157.4FY2022152.7FY2023159.5FY2024164.7FY2025Home Depot Forms 10-K; fiscal 2024 had 53 weeks; SRS from June 2024
The pandemic surge, a dip, then growth bought with SRS and GMS.

Net sales were $164,683 million in fiscal 2025, the year to 1 February 20265. The stores, websites and the HD Supply maintenance business, reported as the Primary segment, sold $151,966 million; SRS Distribution and GMS, the building-products distributors bought in 2024 and 2025, sold $12,717 million6. About 92% of sales were in the United States7. No single customer accounts for more than 10% of revenue8; press coverage of the fiscal 2025 results said the Pro business accounts for nearly half of total revenue9.

How it makes money is plain retail at great scale. It buys goods, marks them up to a gross margin of 33.3%10, and runs its stores at an operating margin of 12.7% for the whole company in fiscal 202511. Operating income was $20,890 million and net earnings $14,156 million, or $14.23 a share12.

The last three years have been flat. Comparable sales fell 3.2% and 1.8% and rose 0.3%13, the Primary segment sold less in fiscal 2025 than in fiscal 202314, and the company's growth has come from acquisitions: SRS for $18,028 million and GMS for $5,081 million1516. To pay for SRS it paused share buybacks in March 202417, and net debt was about $54 billion at the end of fiscal 202518.

In the second quarter of fiscal 2026 net sales rose 5.7% to $47,861 million and comparable sales 1.7%19. The chief executive, Ted Decker, took a temporary medical leave in August20. The shares were $293.20 on 25 September 2026, a market value of $292.52 billion and 20.52 times earnings, down 28.3% in a year21.

The workforce shows how much of the business is still the stores. Of about 472,400 associates at the end of fiscal 2025, roughly 53,400 were salaried and the rest paid by the hour; 422,500 worked in the United States, 31,700 in Canada and 17,800 in Mexico22. The largest store states were California with 247, Florida with 163 and Texas23. Ownership is spread thin: Vanguard held 100,011,247 shares and BlackRock 71,124,61524, and institutions own about 76%25.

The leadership bench has long tenure. Decker joined Home Depot in 2000 and has been chief executive since March 2022 and chair since October 202226; the chief financial officer, Richard McPhail, has held that post since September 201927. The second-quarter results release in August 2026 quoted McPhail and Senior Executive Vice President Ann-Marie Campbell rather than Decker28.

The moat around the stores is wide: 90% of their space is owned29, and the gross margin held through the housing freeze. The number that would falsify that verdict is Primary segment sales; if they do not grow in a housing recovery, the stores' advantage has become a toll on a market that is no longer expanding, and the company will depend on distributors that earn a fifth of the stores' margin.

The number that tests this moat
Reported
Revenue, and where it comes from
$164.7bn in fiscal 2025: Primary (stores, online, HD Supply) $152.0bn (92%), Other (SRS, GMS) $12.7bn

The stores flat since fiscal 2023 and the distributors doubling; watch Primary sales growth.

Source: Home Depot Form 10-K, fiscal 2025 ↗
Moat scorecardHow ratings work →
Switching costs4/10
Network effects2/10
Pricing power7/10
Hard to replicate9/10
Disruption resistance6/10
Overall durability8/10

Replication is the strongest dimension: 2,359 largely owned stores near every large North American market and more than 500 depots could not be rebuilt at any price. Pricing power is real, shown by a ticket up 54% in ten years and a gross margin that held through the housing freeze. Switching costs are low for homeowners, higher for Pros on trade credit and loyalty programmes. Network effects are minimal. Disruption resistance is moderate: online sellers and AI shopping tools compete on price, but bulky and urgent goods favour the stores. Durability sits in the wide band because the store franchise is intact, even though it no longer grows and the acquired distributors earn far less.

Dig deeper
DIG DEEPER 01
The Revenue Lines
Home Depot's stores earn 13.5% and have stopped growing; its distributors earn 2.5% and grow only by acquisition.
DIG DEEPER 02
The Moat
Home Depot's store network is still a wide moat, but it has stopped growing, and everything added since 2023 is a lower-return distributor.
DIG DEEPER 03
Competitors
Home Depot's rivals are a smaller twin, sellers without stores, the supply houses it joined by acquisition and its own suppliers.
DIG DEEPER 04
Major Clients
No Home Depot customer reaches 10% of revenue and nothing is contracted beyond three months; its concentration is in the housing market, not in any…
✦ Future bets — beyond today's moat
✦ FUTURE BET 01
The Future Bets
Home Depot's next leg depends on a housing recovery it cannot control and on making four Pro businesses act as one.
⚠ Threats to the moat
⚠ THREAT 01
Every Dollar of Growth Since Fiscal 2023 Was Bought
Every dollar of Home Depot's growth since fiscal 2023 came from acquisitions; the stores, online and HD Supply sold less in fiscal 2025 than two years…
⚠ THREAT 02
Waiting for Housing
Home Depot's growth waits on houses changing hands, and turnover is at historic lows with no date for a recovery.
◆ What the market may be missing
◆ THE VARIANT VIEW
What the Market Isn't Pricing In
At 20 times earnings and near its 52-week low, Home Depot is priced for a core that never recovers and distributors that never earn more than 2.5%.
◆ THE VARIANT VIEW
Inside the Latest Quarter (Q2 Fiscal 2026)
Home Depot's second quarter of fiscal 2026 grew sales 5.7%, but its operating margin still fell even with $685 million of tariff refunds.
References
  1. ReportedHome Depot sells the materials, tools and appliances that go into houses, and it calls itself the world's largest home improvement retailer.
    The Home Depot second-quarter fiscal 2026 results release, Form 8-K exhibit 99.1 - sales, comparable sales, transactions, ticket, earnings, reaffirmed guidance and the balance sheet. — Q2 fiscal 2026 · publ. 18 August 2026 · source ↗
  2. ReportedIt was incorporated in Delaware in 1978 and is based in Atlanta, runs 2,359 stores in the United States, Canada and Mexico, and employs about 472,400 people.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, real estate, supply chain and workforce. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  3. ReportedIt was incorporated in Delaware in 1978 and is based in Atlanta, runs 2,359 stores in the United States, Canada and Mexico, and employs about 472,400 people.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, real estate, supply chain and workforce. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  4. ReportedIt was incorporated in Delaware in 1978 and is based in Atlanta, runs 2,359 stores in the United States, Canada and Mexico, and employs about 472,400 people.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, real estate, supply chain and workforce. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  5. ReportedNet sales were $164,683 million in fiscal 2025, the year to 1 February 2026.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, Pros, SRS, competition and supply chain. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  6. ReportedThe stores, websites and the HD Supply maintenance business, reported as the Primary segment, sold $151,966 million; SRS Distribution and GMS, the building-products distributors bought in 2024 and 2025, sold $12,717 million.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, real estate, supply chain and workforce. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  7. Moat Explorer calcAbout 92% of sales were in the United States.
    Moat Explorer calculation from The Home Depot's filings and market data ($ millions unless stated; fiscal years as Home Depot names them, fiscal 2025 = year to 1 February 2026). Segments: Primary net sales 151,966 / 152,669 - 1 = -0.5% (fiscal 2023 to 2025); Primary operating income 20,574 / 21,689 - 1 = -5.1%; Primary operating margin 21,689 / 152,669 = 14.2% (fiscal 2023), 21,313 / 153,108 = 13.9% (fiscal 2024), 20,574 / 151,966 = 13.5% (fiscal 2025); Other operating margin 213 / 6,406 = 3.3% (fiscal 2024), 316 / 12,717 = 2.5% (fiscal 2025); Other before intangible amortisation 316 + 398 = 714, 714 / 12,717 = 5.6%; Other share of net sales 12,717 / 164,683 = 7.7%; Other share of operating income 316 / 20,890 = 1.5%. Q2 fiscal 2026: Primary 42,806 / 42,157 - 1 = +1.5%, margin 6,592 / 42,806 = 15.4%; Other 5,055 / 3,120 - 1 = +62%, margin 247 / 5,055 = 4.9%; Q2 fiscal 2025 margins: Primary 6,354 / 42,157 = 15.1%, Other 201 / 3,120 = 6.4%; Q1 fiscal 2026 Primary 80,569 - 42,806 = 37,763 and 11,557 - 6,592 = 4,965, margin 13.1%; Other 9,057 - 5,055 = 4,002 and 263 - 247 = 16, margin 0.4%. Pro acquisitions 8,692 + 18,028 + 5,081 + about 1,100 = about 32,900 (HD Supply, SRS, GMS, Mingledorff's). Growth: net sales 164,683 - 159,514 = 5,169 in fiscal 2025 against about 6,300 contributed by acquisitions; fiscal 2025 over fiscal 2023 164,683 - 152,669 = 12,014, of which Other 12,717. Net sales fiscal 2017 to fiscal 2025 164,683 / 100,904 - 1 = +63%; stores 2,359 - 2,284 = 75, 75 / 2,284 = +3.3%. Traffic: transactions 1,601.5 / 1,500.8 - 1 = +6.7% (fiscal 2015 to 2025); 1,601.5 / 1,759.7 - 1 = -9.0% (fiscal 2021 to 2025); average ticket 90.56 / 58.77 - 1 = +54%. Net sales per store 164,683 / 2,359 is not meaningful because Other has no stores; Primary 151,966 / 2,359 = 64.4 per store. Margins: operating margin 21,689 / 152,669 = 14.2%, 21,526 / 159,514 = 13.5%, 20,890 / 164,683 = 12.7%; SG&A 30,702 / 28,748 - 1 = +6.8% against net sales +3.2%; Primary SG&A 28,885 / 27,822 - 1 = +3.8% against Primary net sales 151,966 / 153,108 - 1 = -0.7%; interest expense 2,412 / 1,943 - 1 = +24%; operating income / interest 20,890 / 2,412 = 8.7 times. Departments: Lighting 4,006 / 4,549 - 1 = -11.9%; Flooring 8,232 / 8,703 - 1 = -5.4%; Storage and Organization 5,054 / 4,881 - 1 = +3.5%; Appliances 13,987 / 164,683 = 8.5%. Classes fiscal 2025: 52,439 + 51,679 + 47,848 = 151,966 = Primary net sales. Net margin 14,156 / 164,683 = 8.6%; Lowe's 6.63 / 90.43 = 7.3%; Lowe's price to sales 106.20 / 90.43 = 1.17 against 1.73; Primary share 151,966 / 164,683 = 92.3%; cost of sales 164,683 - 54,865 = 109,818. Primary share Q2 fiscal 2026 42,806 / 47,861 = 89.4%; H1 net sales increase 89.6 - 85.1 = 4.5bn, GMS 2.8 / 4.5 = 62%; average ticket 89.31 / 90.36 - 1 = -1.2%; equity build 14,156 - 9,152 = 5,004; buyback authorization 11.66 / 292.52 = 4.0% of market value; depreciation and amortisation as a share of sales, Other 715 / 12,717 = 5.6%, Primary 3,344 / 151,966 = 2.2%. US share 152,170 / 164,683 = 92.4%. Mexico stores 2,359 - 2,035 - 182 = 142. Other share of net sales 6,406 / 159,514 = 4.0% (fiscal 2024), 5,055 / 47,861 = 10.6% (Q2 fiscal 2026). Sales per retail square foot 627.17 / 454.82 - 1 = +38% (fiscal 2019 to 2022), 599.92 / 627.17 - 1 = -4.3% (fiscal 2022 to 2024). Tariff refunds 685 / 47,861 = 1.4% of Q2 net sales; 685 / 16,115 = 4.3% of Q2 gross profit; refunds in inventory cost 730 - 685 = about 45. Receivables 5,597 / 4,903 - 1 = +14.2%. Capital: net debt 4,464 + 4,967 + 46,341 - 1,389 = 54,383 (1 February 2026); 316 + 4,582 + 48,485 - 1,659 = 51,724 (2 February 2025); 4,248 + 4,697 + 43,951 - 2,085 = 50,811 (2 August 2026); net debt / equity 54,383 / 12,813 = 4.2 times; goodwill and intangibles 22,344 + 10,329 = 32,673, 32,673 / 105,095 = 31.1% of total assets. Free cash flow 16,325 - 3,679 = 12,646 (fiscal 2025), 19,810 - 3,485 = 16,325 (fiscal 2024), 21,172 - 3,226 = 17,946 (fiscal 2023); dividends paid / free cash flow 9,152 / 12,646 = 72.4%; dividend per share / diluted EPS 9.20 / 14.23 = 64.7%; capex / net sales 3,679 / 164,683 = 2.2%. Average debt and equity 61,914 / 44,955 - 1 = +38%; SRS + GMS 18,028 + 5,081 = 23,109; interest expense 2,412 - 1,943 = 469; operating cash flow / dividends paid 16,325 / 9,152 = 1.8 times; free cash flow 12,646 / 17,946 - 1 = -30%; dividend per share 9.00 / 8.36 - 1 = +7.7%, 9.20 / 9.00 - 1 = +2.2%, 2.33 / 2.30 - 1 = +1.3%. Repurchases fiscal 2015-2023: 7,000 + 7,000 + 8,002 + 10,000 + 7,000 + 597 + 15,001 + 6,504 + 8,074 = 69,178; diluted shares 995 / 1,283 - 1 = -22%. H1 fiscal 2026 EPS 8.09 / 14.23 = 57%. Market: 292.52 / 14.26 = 20.5 times trailing earnings; 292.52 / 169.18 = 1.73 times sales; 292.52 / 433.37 - 1 = -32.5% from the end-2021 value; Lowe's 106.20 / 292.52 = 36%, 90.43 / 169.18 = 53% of revenue; dividend yield 9.32 / 293.20 = 3.2%; trailing diluted EPS 14.23 + 8.09 - (3.45 + 4.58) = 14.29; trailing net income 292.52 / 20.52 = about 14.26bn - segments, sales, traffic and margins. — Fiscal 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in The Home Depot's Forms 10-K and 10-Q, results releases and market data; operands shown in the source line.
  8. ReportedNo single customer accounts for more than 10% of revenue; press coverage of the fiscal 2025 results said the Pro business accounts for nearly half of total revenue.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, Pros, SRS, competition and supply chain. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  9. ReportedNo single customer accounts for more than 10% of revenue; press coverage of the fiscal 2025 results said the Pro business accounts for nearly half of total revenue.
    PYMNTS on Home Depot's fiscal 2025 results: the Pro business nears half of revenue. — Fiscal 2025 · publ. 24 February 2026 · source ↗
  10. ReportedIt buys goods, marks them up to a gross margin of 33.3%, and runs its stores at an operating margin of 12.7% for the whole company in fiscal 2025.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, real estate, supply chain and workforce. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  11. Moat Explorer calcIt buys goods, marks them up to a gross margin of 33.3%, and runs its stores at an operating margin of 12.7% for the whole company in fiscal 2025.
    Moat Explorer calculation from The Home Depot's filings and market data ($ millions unless stated; fiscal years as Home Depot names them, fiscal 2025 = year to 1 February 2026). Segments: Primary net sales 151,966 / 152,669 - 1 = -0.5% (fiscal 2023 to 2025); Primary operating income 20,574 / 21,689 - 1 = -5.1%; Primary operating margin 21,689 / 152,669 = 14.2% (fiscal 2023), 21,313 / 153,108 = 13.9% (fiscal 2024), 20,574 / 151,966 = 13.5% (fiscal 2025); Other operating margin 213 / 6,406 = 3.3% (fiscal 2024), 316 / 12,717 = 2.5% (fiscal 2025); Other before intangible amortisation 316 + 398 = 714, 714 / 12,717 = 5.6%; Other share of net sales 12,717 / 164,683 = 7.7%; Other share of operating income 316 / 20,890 = 1.5%. Q2 fiscal 2026: Primary 42,806 / 42,157 - 1 = +1.5%, margin 6,592 / 42,806 = 15.4%; Other 5,055 / 3,120 - 1 = +62%, margin 247 / 5,055 = 4.9%; Q2 fiscal 2025 margins: Primary 6,354 / 42,157 = 15.1%, Other 201 / 3,120 = 6.4%; Q1 fiscal 2026 Primary 80,569 - 42,806 = 37,763 and 11,557 - 6,592 = 4,965, margin 13.1%; Other 9,057 - 5,055 = 4,002 and 263 - 247 = 16, margin 0.4%. Pro acquisitions 8,692 + 18,028 + 5,081 + about 1,100 = about 32,900 (HD Supply, SRS, GMS, Mingledorff's). Growth: net sales 164,683 - 159,514 = 5,169 in fiscal 2025 against about 6,300 contributed by acquisitions; fiscal 2025 over fiscal 2023 164,683 - 152,669 = 12,014, of which Other 12,717. Net sales fiscal 2017 to fiscal 2025 164,683 / 100,904 - 1 = +63%; stores 2,359 - 2,284 = 75, 75 / 2,284 = +3.3%. Traffic: transactions 1,601.5 / 1,500.8 - 1 = +6.7% (fiscal 2015 to 2025); 1,601.5 / 1,759.7 - 1 = -9.0% (fiscal 2021 to 2025); average ticket 90.56 / 58.77 - 1 = +54%. Net sales per store 164,683 / 2,359 is not meaningful because Other has no stores; Primary 151,966 / 2,359 = 64.4 per store. Margins: operating margin 21,689 / 152,669 = 14.2%, 21,526 / 159,514 = 13.5%, 20,890 / 164,683 = 12.7%; SG&A 30,702 / 28,748 - 1 = +6.8% against net sales +3.2%; Primary SG&A 28,885 / 27,822 - 1 = +3.8% against Primary net sales 151,966 / 153,108 - 1 = -0.7%; interest expense 2,412 / 1,943 - 1 = +24%; operating income / interest 20,890 / 2,412 = 8.7 times. Departments: Lighting 4,006 / 4,549 - 1 = -11.9%; Flooring 8,232 / 8,703 - 1 = -5.4%; Storage and Organization 5,054 / 4,881 - 1 = +3.5%; Appliances 13,987 / 164,683 = 8.5%. Classes fiscal 2025: 52,439 + 51,679 + 47,848 = 151,966 = Primary net sales. Net margin 14,156 / 164,683 = 8.6%; Lowe's 6.63 / 90.43 = 7.3%; Lowe's price to sales 106.20 / 90.43 = 1.17 against 1.73; Primary share 151,966 / 164,683 = 92.3%; cost of sales 164,683 - 54,865 = 109,818. Primary share Q2 fiscal 2026 42,806 / 47,861 = 89.4%; H1 net sales increase 89.6 - 85.1 = 4.5bn, GMS 2.8 / 4.5 = 62%; average ticket 89.31 / 90.36 - 1 = -1.2%; equity build 14,156 - 9,152 = 5,004; buyback authorization 11.66 / 292.52 = 4.0% of market value; depreciation and amortisation as a share of sales, Other 715 / 12,717 = 5.6%, Primary 3,344 / 151,966 = 2.2%. US share 152,170 / 164,683 = 92.4%. Mexico stores 2,359 - 2,035 - 182 = 142. Other share of net sales 6,406 / 159,514 = 4.0% (fiscal 2024), 5,055 / 47,861 = 10.6% (Q2 fiscal 2026). Sales per retail square foot 627.17 / 454.82 - 1 = +38% (fiscal 2019 to 2022), 599.92 / 627.17 - 1 = -4.3% (fiscal 2022 to 2024). Tariff refunds 685 / 47,861 = 1.4% of Q2 net sales; 685 / 16,115 = 4.3% of Q2 gross profit; refunds in inventory cost 730 - 685 = about 45. Receivables 5,597 / 4,903 - 1 = +14.2%. Capital: net debt 4,464 + 4,967 + 46,341 - 1,389 = 54,383 (1 February 2026); 316 + 4,582 + 48,485 - 1,659 = 51,724 (2 February 2025); 4,248 + 4,697 + 43,951 - 2,085 = 50,811 (2 August 2026); net debt / equity 54,383 / 12,813 = 4.2 times; goodwill and intangibles 22,344 + 10,329 = 32,673, 32,673 / 105,095 = 31.1% of total assets. Free cash flow 16,325 - 3,679 = 12,646 (fiscal 2025), 19,810 - 3,485 = 16,325 (fiscal 2024), 21,172 - 3,226 = 17,946 (fiscal 2023); dividends paid / free cash flow 9,152 / 12,646 = 72.4%; dividend per share / diluted EPS 9.20 / 14.23 = 64.7%; capex / net sales 3,679 / 164,683 = 2.2%. Average debt and equity 61,914 / 44,955 - 1 = +38%; SRS + GMS 18,028 + 5,081 = 23,109; interest expense 2,412 - 1,943 = 469; operating cash flow / dividends paid 16,325 / 9,152 = 1.8 times; free cash flow 12,646 / 17,946 - 1 = -30%; dividend per share 9.00 / 8.36 - 1 = +7.7%, 9.20 / 9.00 - 1 = +2.2%, 2.33 / 2.30 - 1 = +1.3%. Repurchases fiscal 2015-2023: 7,000 + 7,000 + 8,002 + 10,000 + 7,000 + 597 + 15,001 + 6,504 + 8,074 = 69,178; diluted shares 995 / 1,283 - 1 = -22%. H1 fiscal 2026 EPS 8.09 / 14.23 = 57%. Market: 292.52 / 14.26 = 20.5 times trailing earnings; 292.52 / 169.18 = 1.73 times sales; 292.52 / 433.37 - 1 = -32.5% from the end-2021 value; Lowe's 106.20 / 292.52 = 36%, 90.43 / 169.18 = 53% of revenue; dividend yield 9.32 / 293.20 = 3.2%; trailing diluted EPS 14.23 + 8.09 - (3.45 + 4.58) = 14.29; trailing net income 292.52 / 20.52 = about 14.26bn - segments, sales, traffic and margins. — Fiscal 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in The Home Depot's Forms 10-K and 10-Q, results releases and market data; operands shown in the source line.
  12. ReportedOperating income was $20,890 million and net earnings $14,156 million, or $14.23 a share.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - financial statements and notes: earnings, cash flow, balance sheet, debt and acquisitions. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  13. ReportedComparable sales fell 3.2% and 1.8% and rose 0.3%, the Primary segment sold less in fiscal 2025 than in fiscal 2023, and the company's growth has come from acquisitions: SRS for $18,028 million and GMS for $5,081 million.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 7 MD&A: segments, comparable sales, transactions, product lines, margins and ROIC. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  14. ReportedComparable sales fell 3.2% and 1.8% and rose 0.3%, the Primary segment sold less in fiscal 2025 than in fiscal 2023, and the company's growth has come from acquisitions: SRS for $18,028 million and GMS for $5,081 million.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 7 MD&A: segments, comparable sales, transactions, product lines, margins and ROIC. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  15. ReportedComparable sales fell 3.2% and 1.8% and rose 0.3%, the Primary segment sold less in fiscal 2025 than in fiscal 2023, and the company's growth has come from acquisitions: SRS for $18,028 million and GMS for $5,081 million.
    The Home Depot Form 10-K for fiscal 2024 (53 weeks ended 2 February 2025) - the SRS purchase consideration, the 53rd week and total sales per retail square foot of $599.92. — Fiscal 2024 · publ. March 2025 · source ↗
  16. ReportedComparable sales fell 3.2% and 1.8% and rose 0.3%, the Primary segment sold less in fiscal 2025 than in fiscal 2023, and the company's growth has come from acquisitions: SRS for $18,028 million and GMS for $5,081 million.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 7 MD&A: segments, comparable sales, transactions, product lines, margins and ROIC. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  17. ReportedTo pay for SRS it paused share buybacks in March 2024, and net debt was about $54 billion at the end of fiscal 2025.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 7 MD&A: segments, comparable sales, transactions, product lines, margins and ROIC. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  18. Moat Explorer calcTo pay for SRS it paused share buybacks in March 2024, and net debt was about $54 billion at the end of fiscal 2025.
    Moat Explorer calculation from The Home Depot's filings and market data ($ millions unless stated; fiscal years as Home Depot names them, fiscal 2025 = year to 1 February 2026). Segments: Primary net sales 151,966 / 152,669 - 1 = -0.5% (fiscal 2023 to 2025); Primary operating income 20,574 / 21,689 - 1 = -5.1%; Primary operating margin 21,689 / 152,669 = 14.2% (fiscal 2023), 21,313 / 153,108 = 13.9% (fiscal 2024), 20,574 / 151,966 = 13.5% (fiscal 2025); Other operating margin 213 / 6,406 = 3.3% (fiscal 2024), 316 / 12,717 = 2.5% (fiscal 2025); Other before intangible amortisation 316 + 398 = 714, 714 / 12,717 = 5.6%; Other share of net sales 12,717 / 164,683 = 7.7%; Other share of operating income 316 / 20,890 = 1.5%. Q2 fiscal 2026: Primary 42,806 / 42,157 - 1 = +1.5%, margin 6,592 / 42,806 = 15.4%; Other 5,055 / 3,120 - 1 = +62%, margin 247 / 5,055 = 4.9%; Q2 fiscal 2025 margins: Primary 6,354 / 42,157 = 15.1%, Other 201 / 3,120 = 6.4%; Q1 fiscal 2026 Primary 80,569 - 42,806 = 37,763 and 11,557 - 6,592 = 4,965, margin 13.1%; Other 9,057 - 5,055 = 4,002 and 263 - 247 = 16, margin 0.4%. Pro acquisitions 8,692 + 18,028 + 5,081 + about 1,100 = about 32,900 (HD Supply, SRS, GMS, Mingledorff's). Growth: net sales 164,683 - 159,514 = 5,169 in fiscal 2025 against about 6,300 contributed by acquisitions; fiscal 2025 over fiscal 2023 164,683 - 152,669 = 12,014, of which Other 12,717. Net sales fiscal 2017 to fiscal 2025 164,683 / 100,904 - 1 = +63%; stores 2,359 - 2,284 = 75, 75 / 2,284 = +3.3%. Traffic: transactions 1,601.5 / 1,500.8 - 1 = +6.7% (fiscal 2015 to 2025); 1,601.5 / 1,759.7 - 1 = -9.0% (fiscal 2021 to 2025); average ticket 90.56 / 58.77 - 1 = +54%. Net sales per store 164,683 / 2,359 is not meaningful because Other has no stores; Primary 151,966 / 2,359 = 64.4 per store. Margins: operating margin 21,689 / 152,669 = 14.2%, 21,526 / 159,514 = 13.5%, 20,890 / 164,683 = 12.7%; SG&A 30,702 / 28,748 - 1 = +6.8% against net sales +3.2%; Primary SG&A 28,885 / 27,822 - 1 = +3.8% against Primary net sales 151,966 / 153,108 - 1 = -0.7%; interest expense 2,412 / 1,943 - 1 = +24%; operating income / interest 20,890 / 2,412 = 8.7 times. Departments: Lighting 4,006 / 4,549 - 1 = -11.9%; Flooring 8,232 / 8,703 - 1 = -5.4%; Storage and Organization 5,054 / 4,881 - 1 = +3.5%; Appliances 13,987 / 164,683 = 8.5%. Classes fiscal 2025: 52,439 + 51,679 + 47,848 = 151,966 = Primary net sales. Net margin 14,156 / 164,683 = 8.6%; Lowe's 6.63 / 90.43 = 7.3%; Lowe's price to sales 106.20 / 90.43 = 1.17 against 1.73; Primary share 151,966 / 164,683 = 92.3%; cost of sales 164,683 - 54,865 = 109,818. Primary share Q2 fiscal 2026 42,806 / 47,861 = 89.4%; H1 net sales increase 89.6 - 85.1 = 4.5bn, GMS 2.8 / 4.5 = 62%; average ticket 89.31 / 90.36 - 1 = -1.2%; equity build 14,156 - 9,152 = 5,004; buyback authorization 11.66 / 292.52 = 4.0% of market value; depreciation and amortisation as a share of sales, Other 715 / 12,717 = 5.6%, Primary 3,344 / 151,966 = 2.2%. US share 152,170 / 164,683 = 92.4%. Mexico stores 2,359 - 2,035 - 182 = 142. Other share of net sales 6,406 / 159,514 = 4.0% (fiscal 2024), 5,055 / 47,861 = 10.6% (Q2 fiscal 2026). Sales per retail square foot 627.17 / 454.82 - 1 = +38% (fiscal 2019 to 2022), 599.92 / 627.17 - 1 = -4.3% (fiscal 2022 to 2024). Tariff refunds 685 / 47,861 = 1.4% of Q2 net sales; 685 / 16,115 = 4.3% of Q2 gross profit; refunds in inventory cost 730 - 685 = about 45. Receivables 5,597 / 4,903 - 1 = +14.2%. Capital: net debt 4,464 + 4,967 + 46,341 - 1,389 = 54,383 (1 February 2026); 316 + 4,582 + 48,485 - 1,659 = 51,724 (2 February 2025); 4,248 + 4,697 + 43,951 - 2,085 = 50,811 (2 August 2026); net debt / equity 54,383 / 12,813 = 4.2 times; goodwill and intangibles 22,344 + 10,329 = 32,673, 32,673 / 105,095 = 31.1% of total assets. Free cash flow 16,325 - 3,679 = 12,646 (fiscal 2025), 19,810 - 3,485 = 16,325 (fiscal 2024), 21,172 - 3,226 = 17,946 (fiscal 2023); dividends paid / free cash flow 9,152 / 12,646 = 72.4%; dividend per share / diluted EPS 9.20 / 14.23 = 64.7%; capex / net sales 3,679 / 164,683 = 2.2%. Average debt and equity 61,914 / 44,955 - 1 = +38%; SRS + GMS 18,028 + 5,081 = 23,109; interest expense 2,412 - 1,943 = 469; operating cash flow / dividends paid 16,325 / 9,152 = 1.8 times; free cash flow 12,646 / 17,946 - 1 = -30%; dividend per share 9.00 / 8.36 - 1 = +7.7%, 9.20 / 9.00 - 1 = +2.2%, 2.33 / 2.30 - 1 = +1.3%. Repurchases fiscal 2015-2023: 7,000 + 7,000 + 8,002 + 10,000 + 7,000 + 597 + 15,001 + 6,504 + 8,074 = 69,178; diluted shares 995 / 1,283 - 1 = -22%. H1 fiscal 2026 EPS 8.09 / 14.23 = 57%. Market: 292.52 / 14.26 = 20.5 times trailing earnings; 292.52 / 169.18 = 1.73 times sales; 292.52 / 433.37 - 1 = -32.5% from the end-2021 value; Lowe's 106.20 / 292.52 = 36%, 90.43 / 169.18 = 53% of revenue; dividend yield 9.32 / 293.20 = 3.2%; trailing diluted EPS 14.23 + 8.09 - (3.45 + 4.58) = 14.29; trailing net income 292.52 / 20.52 = about 14.26bn - balance sheet, cash flow, capital returns and valuation. — Fiscal 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in The Home Depot's Forms 10-K and 10-Q, results releases and market data; operands shown in the source line.
  19. ReportedIn the second quarter of fiscal 2026 net sales rose 5.7% to $47,861 million and comparable sales 1.7%.
    The Home Depot second-quarter fiscal 2026 results release, Form 8-K exhibit 99.1 - sales, comparable sales, transactions, ticket, earnings, reaffirmed guidance and the balance sheet. — Q2 fiscal 2026 · publ. 18 August 2026 · source ↗
  20. ReportedThe chief executive, Ted Decker, took a temporary medical leave in August.
    The Home Depot release, Form 8-K exhibit 99.1: interim management plans while chief executive Ted Decker takes a temporary medical leave. — August 2026 · publ. 12 August 2026 · source ↗
  21. ReportedThe shares were $293.20 on 25 September 2026, a market value of $292.52 billion and 20.52 times earnings, down 28.3% in a year.
    Home Depot (HD) market data - $293.20 at the close on 25 September 2026, market cap $292.52B (down 28.3% in a year), trailing P/E 20.52, forward P/E 19.01, dividend $9.32 (3.18%), 52-week range 289.10-411.41, TTM revenue $169.18B. — September 2026 · publ. 25 September 2026 · source ↗
  22. ReportedOf about 472,400 associates at the end of fiscal 2025, roughly 53,400 were salaried and the rest paid by the hour; 422,500 worked in the United States, 31,700 in Canada and 17,800 in Mexico.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, real estate, supply chain and workforce. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  23. ReportedThe largest store states were California with 247, Florida with 163 and Texas.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, real estate, supply chain and workforce. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  24. ReportedOwnership is spread thin: Vanguard held 100,011,247 shares and BlackRock 71,124,615, and institutions own about 76%.
    The Home Depot proxy statement (DEF 14A) - Vanguard 10.0% and BlackRock 7.1% of the shares. — 2026 · publ. 7 April 2026 · source ↗
  25. ReportedOwnership is spread thin: Vanguard held 100,011,247 shares and BlackRock 71,124,615, and institutions own about 76%.
    Home Depot (HD) statistics - P/B 17.61, 50-day average 327.22, 200-day average 340.77. — September 2026 · publ. 25 September 2026 · source ↗
  26. ReportedDecker joined Home Depot in 2000 and has been chief executive since March 2022 and chair since October 2022; the chief financial officer, Richard McPhail, has held that post since September 2019.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, Pros, SRS, competition and supply chain. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  27. ReportedDecker joined Home Depot in 2000 and has been chief executive since March 2022 and chair since October 2022; the chief financial officer, Richard McPhail, has held that post since September 2019.
    The Home Depot Form 8-K, item 5.02 - Richard McPhail designated interim principal executive officer. — August 2026 · publ. 12 August 2026 · source ↗
  28. ReportedThe second-quarter results release in August 2026 quoted McPhail and Senior Executive Vice President Ann-Marie Campbell rather than Decker.
    The Home Depot second-quarter fiscal 2026 results release, Form 8-K exhibit 99.1 - sales, comparable sales, transactions, ticket, earnings, reaffirmed guidance and the balance sheet. — Q2 fiscal 2026 · publ. 18 August 2026 · source ↗
  29. ReportedThe moat around the stores is wide: 90% of their space is owned, and the gross margin held through the housing freeze.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, real estate, supply chain and workforce. — Fiscal 2025 · publ. 18 March 2026 · source ↗
Sources
Generated September 26, 2026