⚠ Floating Rates and $4.6 Billion DueLow threat

Home Depot (HD) — threat to the moat

Home Depot must refinance $4.6 billion of notes this year and carries $5.4 billion of floating-rate debt, a cost that barely existed before SRS.

Home Depot has $4.6 billion of notes payable within twelve months1, and about $5.4 billion of its notes carry floating rates, where a one percentage point increase would raise annual interest expense by about $54 million2. Future interest payments on the notes total $25.4 billion3.

Interest expense ($M)1,943FY20232,321FY20242,412FY2025Home Depot Form 10-K fiscal 2025
Up 24% in two years.

The company also relies on commercial paper. Its programme is $11.0 billion, with $4.5 billion outstanding at the end of fiscal 2025 at 3.7%4.

None of this is dangerous for a company with $16,325 million of operating cash flow5. It is a cost that did not exist in the same size before 2024: interest expense has risen by about $469 million a year since fiscal 20236.

The floating portion is a small share of the whole. About $5.4 billion of the $48.8 billion of notes, roughly 11%, carries floating rates7. Most of the debt was fixed when rates were lower, so refinancing it at today's rates is the bigger cost over time.

The measure is interest expense. Net interest guidance for fiscal 2026 is about $2.3 billion8; a rise above that would mean refinancing costs are eating the benefit of debt repayment.

References
  1. ReportedHome Depot has $4.6 billion of notes payable within twelve months, and about $5.4 billion of its notes carry floating rates, where a one percentage point increase would raise annual interest expense by about $54 million.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1A risk factors and Item 7A market risk: housing, interest rates, commodities and shrink. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  2. ReportedHome Depot has $4.6 billion of notes payable within twelve months, and about $5.4 billion of its notes carry floating rates, where a one percentage point increase would raise annual interest expense by about $54 million.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1A risk factors and Item 7A market risk: housing, interest rates, commodities and shrink. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  3. ReportedFuture interest payments on the notes total $25.4 billion.
    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 ↗
  4. ReportedIts programme is $11.0 billion, with $4.5 billion outstanding at the end of fiscal 2025 at 3.7%.
    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 ↗
  5. ReportedNone of this is dangerous for a company with $16,325 million of operating cash flow.
    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 ↗
  6. ReportedIt is a cost that did not exist in the same size before 2024: interest expense has risen by about $469 million a year since fiscal 2023.
    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 ↗
  7. ReportedAbout $5.4 billion of the $48.8 billion of notes, roughly 11%, carries floating rates.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1A risk factors and Item 7A market risk: housing, interest rates, commodities and shrink. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  8. ReportedNet interest guidance for fiscal 2026 is about $2.3 billion; a rise above that would mean refinancing costs are eating the benefit of debt repayment.
    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 ↗
Sources
Generated September 26, 2026