Home Depot Inc (NYSE:HD) Q2 Earnings and Revenue Miss Analyst Estimates

HOME DEPOT INC (NYSE:HD) reported second-quarter fiscal 2025 results that fell short of analyst expectations, despite showing modest growth in both revenue and comparable sales. The world's largest home improvement retailer posted revenue of $45.3 billion, a 4.9% increase from the same period last year, but this figure came in below the consensus estimate of $46.7 billion. Earnings per share (EPS) for the quarter were $4.68, which also missed the projected $4.85.

The market's immediate reaction has been subdued, with pre-market trading indicating a slight decline. This muted response reflects investor disappointment over the earnings and revenue miss, particularly in a quarter where broader market sentiment had been cautiously optimistic about retail performance. Over recent weeks, the stock had been trending upward, gaining approximately 1.85% over the past week and 8.42% over the last month, suggesting that some positive momentum had been building ahead of the report.

Key elements from the earnings release include a 1.0% increase in comparable sales overall, with U.S. comparable sales rising 1.4%. The company noted that foreign exchange rates had a negative impact of approximately 40 basis points on total comparable sales. Despite the quarterly shortfall, management reaffirmed its full-year fiscal 2025 guidance, signaling confidence in their strategic outlook and operational resilience amid current economic conditions.

The press release emphasized that consumer behavior has shifted toward smaller, do-it-yourself projects rather than large-scale renovations, a trend attributed to ongoing cost concerns and economic uncertainty. This aligns with broader industry observations that homeowners are deferring major investments due to elevated borrowing costs and persistent inflation pressures.

Looking ahead, analyst estimates for the next quarter project revenue of approximately $42.3 billion and EPS of $3.96. For the full fiscal year 2026, revenue is forecasted at around $169.4 billion. The company’s decision to reiterate its guidance, despite the Q2 miss, may be viewed as a stabilizing factor by investors, potentially cushioning the stock from more significant declines.

For more detailed earnings data and future estimates, readers can review additional information here.

Disclaimer: This article is not investment advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.