"We remain bullish on the fundamentals of home improvement and are confident we are best positioned to win." - Ted Decker, CEO
— Ted Decker
03Detailed Report
HD
The Home Depot Inc
Period
Q1 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 21, 2026
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Executive Summary
In Q1 2025, The Home Depot Inc (HD) achieved total sales of $39.9 billion, reflecting a 9.4% increase year-over-year. Despite a slight decline in comparable sales of 0.3% due to weather fluctuations and foreign exchange impacts, management expressed confidence in the continued resilience of consumer demand and engagement. Notable growth was observed in key categories such as appliances, plumbing, and outdoor gardening equipment, driven by a strategy focused on enhancing the customer shopping experience through improved associate engagement and innovative digital platforms. Adjusted diluted EPS also demonstrated strength at $3.56, down slightly from $3.67 in Q1 2024, showcasing ongoing profitability even in a challenging economic environment.
Key Performance Indicators
Revenue
Increasing
39.86B
QoQ: 0.38% | YoY: 9.44%
Gross Profit
Increasing
13.46B
33.77% margin
QoQ: 3.26% | YoY: 8.25%
Operating Income
Increasing
5.13B
QoQ: 14.19% | YoY: 1.06%
Net Income
Decreasing
3.43B
QoQ: 14.55% | YoY: -4.64%
EPS
Decreasing
3.46
QoQ: 14.57% | YoY: -4.95%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Performance Overview Revenue: $39.9 billion, up 9.4% YoY Gross Profit: $13.5 billion, gross profit margin of 33.8% Operating Income: $5.1 billion, operating margin of 12.9% Net Income: $3.4 billion, net income margin of 8.6% EPS (Diluted): $3.45, adjusted EPS $3.56, indicating a decrease of 3% YoY Cash Flow from Operating Activities: $4.3 billion, free cash flow of $3.5 billion Inventory Levels: $25.8 billion, up approximately $3.3 billion YoY
The stabilization of operating expenses alongside effective management strategies mitigated anticipated declines, although the operating margin saw a slight reduction from 13.9% in the previous year. Increased capital expenditures of approximately $800 million indicate ongoing investments in infrastructure to support long-term growth.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
39.86B
9.44%
0.38%
Gross Profit
13.46B
8.25%
3.26%
Operating Income
5.13B
1.06%
14.19%
Net Income
3.43B
-4.64%
14.55%
EPS
3.46
-4.95%
14.57%
Key Financial Ratios
Gross Profit Margin
Fair
33.80%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
12.90%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
8.61%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Fair
3.46%
Return on assets is acceptable but below top-tier companies
Return on Equity
Strong
43.20%
Return on equity demonstrates excellent capital efficiency and value creation
Current Ratio
Adequate
1.09
Current ratio meets minimum requirements but limited cushion
Debt to Equity
High Risk
2.89
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Growth
26.13x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
45.11x
Very high premium suggests asset-light business model or lofty expectations
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