The Home Depot Inc (HD) Q1 2025 Earnings Report

Previous: Q4 2024

The Home Depot Inc

$348.87 -1.62%

Exchange: NYSE | Sector: Consumer Cyclical | Industry: Home Improvement

Q1 2025

Published: May 28, 2025

Earnings Highlights

Revenue of $39.86B up 9.4% year-over-year
EPS of $3.45 decreased by 5% from previous year
Gross margin of 33.8%
Net income of 3.43B
""We remain bullish on the fundamentals of home improvement and are confident we are best positioned to win." - Ted Decker, CEO" - Ted Decker

The Home Depot Inc

Period Q1 2025

Currency USD

Report Type Quarterly Earnings

Generated Dec 8, 2025

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

Historical Earnings Comparison

Period	Revenue ($M)	EPS ($)	YoY Growth	Report
Q1 2025	39,856.00	3.45	+9.4%	View
Q4 2024	39,704.00	3.02	+14.1%	View
Q3 2024	40,217.00	3.67	+15.6%	View
Q2 2024	43,175.00	4.60	+14.5%	View
Q1 2024	36,418.00	3.63	-3.4%	View

The Home Depot Inc (HD) Q1 2025 Earnings Report

Earnings Highlights

Executive Summary

Key Performance Indicators

Revenue Trend

Margin Analysis

Financial Highlights

Income Statement

Key Financial Ratios

Management Insights Available for Members

Peer Comparison Available for Members

Investment Outlook & SWOT Available for Members

Historical Earnings Comparison

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