The Home Depot, Inc.

The Home Depot, Inc. (HD) Market Cap

The Home Depot, Inc. has a market capitalization of .

No quote data available.

CEO: Edward Decker

Sector: Consumer Cyclical

Industry: Home Improvement

IPO Date: 1981-09-22

Website: https://www.homedepot.com

The Home Depot, Inc. (HD) - Company Information

Market Cap: -|Sector: Consumer Cyclical

Company Profile

The Home Depot, Inc. operates as a home improvement retailer. It operates The Home Depot stores that sell various building materials, home improvement products, lawn and garden products, and décor products, as well as facilities maintenance, repair, and operations products The company also offers installation services for flooring, cabinets and cabinet makeovers, countertops, furnaces and central air systems, and windows. In addition, it provides tool and equipment rental services. The company primarily serves homeowners; and professional renovators/remodelers, general contractors, maintenance professionals, handymen, property managers, building service contractors, and specialty tradesmen, such as electricians, plumbers, and painters. It also sells its products through websites, including homedepot.com; blinds.com, an online site for custom window coverings; and thecompanystore.com, an online site for textiles and décor products. As of December 31, 2021, the company operated 2,317 stores in the United States. The Home Depot, Inc. was incorporated in 1978 and is based in Atlanta, Georgia.

Analyst Sentiment

72%
Strong Buy

From 36 Active Polls

1Y Forecast: $380.27

▲ +0.0% Potential Upside

Consensus Target Metrics

Low Bound

$320

Median

$377

High Bound

$435

Average

$380

Price & Moving Averages

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🎯 Wall Street Analyst Intelligence Report

1-Year structural target targets, chart projections, and sentiment maps.

Average 1Y Target
$380.27
▲ +22.36% Upside
Low Target
$320.00
3% Risk
Median Target
$377.00
21% Mid
High Target
$435.00
40% Max

Consensus Trend Projection

Trailing closures vs. 12-month metrics map.

Analyst Vote Distribution

Aggregate institutional coverage sentiment weights.

Sentiment volume allocation data unavailable.

Historical valuation matrix unavailable.

📘 Full Research Report

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AI-Generated Research: This report is for informational purposes only.

📘 HOME DEPOT INC (HD) — Investment Overview

🧩 Business Model Overview

Home Depot operates a large-format home improvement retail model that connects residential and light commercial customers with a deep assortment of building products, repair-and-remodel categories, and services. The value chain is built around (1) efficient sourcing and inventory management for a broad SKUs set, (2) store and distribution network coverage that supports product availability, (3) differentiated customer support through in-store expertise and contractor-oriented programs, and (4) omnichannel fulfillment that reduces friction between discovery, purchase, and delivery/installation. Customer stickiness is primarily operational rather than contractual: shoppers value product availability, price competitiveness, and convenient access to stores and delivery. Contractor purchasing further reinforces repeat behavior because consistent inventory, breadth, and service execution reduce project risk and turnaround time.

💰 Revenue Streams & Monetisation Model

Revenue is predominantly transactional, driven by order volume and average ticket size across materials and home improvement categories. Monetisation is supported by three margin levers:
  • Merchandising margin: gross margin on product sales, influenced by supplier terms, category mix, and competitive pricing intensity.
  • Operating leverage: scale benefits in procurement, logistics, and overhead absorption across a large store fleet and distribution system.
  • Non-product contribution: service attachment and ancillary revenue, including installation-related offerings and other customer-financed categories where available.
Although revenue is not “recurring” in the subscription sense, it exhibits repeatability due to the durable nature of home maintenance cycles and the company’s ability to capture both do-it-yourself and contractor-led demand across multiple remodel “moments.”

🧠 Competitive Advantages & Market Positioning

Home Depot’s moat is best characterized as a Scale/Distribution leverage advantage with meaningful category execution capabilities.
  • Scale in purchasing and inventory depth: broader assortment and improved buying power support competitive pricing and in-stock performance, which lowers customer conversion friction.
  • Distribution and logistics efficiency: a mature network of distribution centers and fulfillment capabilities improves service levels while moderating unit costs.
  • Private label / proprietary mix (where applicable): tailored offerings can reduce wholesale dependence and support margin resilience versus purely commoditized branded products.
Competitive benchmarking (primary competitors):
  • Lowe’s Companies: direct large-format home improvement rival with overlapping customer segments. Competition tends to center on store adjacency, merchandising execution, and omnichannel service quality.
  • Amazon / digital marketplaces: strong in convenience and certain product categories, pressuring pricing and selection in commoditized SKUs; however, delivery constraints and product assortment limitations can reduce coverage for larger project baskets.
  • Walmart (and other big-box general retailers): competes in select home categories and seasonal demand with aggressive pricing. The competitive pressure is typically concentrated in durable staples rather than deep project-specific assortments.
Contrast in industry focus: Unlike diversified general retailers and online marketplaces that optimize for limited baskets or category-specific convenience, Home Depot is structurally oriented to project-based purchasing—the breadth, availability, and logistics of large-format home improvement are core to capturing a higher share of total project spend.

🚀 Multi-Year Growth Drivers

Over a 5–10 year horizon, growth is supported by structural demand for home maintenance and renovation, reinforced by demographic and housing-stock characteristics.
  • Housing stock repair/remodel cycle: aging residential infrastructure (roofing, siding, plumbing, electrical, HVAC-related upgrades, and interior renovation) creates recurring spend opportunities.
  • Contractor and pro ecosystem depth: remodeling and repair work cycles sustain project-led demand; improved fulfillment and service programs can increase share of contractor budgets.
  • Omnichannel penetration: increasing online-to-store and online-to-delivery transactions can expand reachable demand while leveraging existing store and distribution assets.
  • Category expansion in growth-adjacent niches: energy-efficiency-related upgrades, outdoor living, and modernization categories tend to benefit from customer “trade-up” behavior when products are available and solutions are easy to source.
TAM expansion is driven less by inventing new demand and more by taking a larger share of wallet across the full renovation funnel—planning, product procurement, and execution—using operational execution and logistics.

⚠ Risk Factors to Monitor

  • Housing and discretionary demand cyclicality: home improvement spending is sensitive to consumer confidence, mortgage rates, and housing turnover.
  • Competitive pricing intensity: sustained pressure from Lowe’s, online retailers, and big-box general retailers can compress merchandising margins.
  • Inventory and working-capital risk: category mix shifts, supply chain disruptions, or demand volatility can affect inventory turns and markdown exposure.
  • Capital intensity and execution risk: store refreshes, distribution upgrades, and logistics investments require disciplined returns.
  • Supply chain and vendor concentration: reliance on key suppliers and freight/logistics conditions can impact costs and availability.

📊 Valuation & Market View

Equity markets typically value home improvement retailers using multiples of earnings power (e.g., EV/EBITDA and P/E) and, in some cases, revenue-based multiples when margins are viewed as stable. The main drivers that move valuation include:
  • Gross margin trajectory: influenced by pricing, mix, and input costs.
  • Operating leverage: how efficiently overhead and logistics scale with sales volumes.
  • Working capital discipline: inventory management and cash conversion quality.
  • Comparable-store sales sustainability: demand resilience and share gains in higher-value categories.
In practice, investors should focus on whether the company can preserve category execution while maintaining cost discipline through cycles.

🔍 Investment Takeaway

Home Depot’s long-term attractiveness rests on durable operational moats—particularly Scale/Distribution leverage and high execution in project-based retail—positioning it to capture a stable, multi-year stream of home maintenance and renovation demand. The core risk is cyclical demand and competitive pricing pressure, but the company’s logistics network, assortment depth, and fulfillment capabilities provide structural advantages that support resilience and share capture across housing cycles.

⚠ AI-generated — informational only. Validate using filings before investing.

📊 AI Financial Analysis

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Earnings Data: Q Ending 2026-05-03

"Headline (2026-05-03 / Q1): Revenue $41.77B and Net Income $3.29B (EPS $3.31). QoQ revenue declined to $38.20B in Q4 and then rebounded; vs last year (2025-05-04 / Q1) revenue is +4.8% YoY, while net income is -4.2% YoY. Over the last four quarters, profitability peaked around mid-2025: net margin fell from 10.1% (2025-08-03) to 7.9% (2026-05-03), indicating margin contraction. QoQ vs 2025-11-02 (Q3 to Q4 to Q1 in the sequence): Revenue fell in Q4 ($38.20B) vs Q3 ($41.35B) and then rose in Q1 2026 ($41.77B) (+9.3% QoQ). Net income likewise improved QoQ from Q4 ($2.57B) to Q1 2026 ($3.29B), a +27.9% QoQ increase. Cash flow remains strong: operating cash flow was $6.03B and free cash flow $5.19B. The business continues shareholder payouts—dividends paid were $2.32B in the quarter—consistent with stability in cash generation despite net income softness YoY. Balance sheet showed leverage typical of HD, with total assets $107.9B and equity at $13.9B; long-term debt remained elevated (~$53.0B). Shareholder returns: price performance is modest (1Y +0.99%, 6M -9.81%), so total return is likely driven more by dividends than by strong momentum."

Revenue Growth

Positive

Q1 2026 revenue $41.77B vs Q1 2025 $39.86B = +4.8% YoY. QoQ, revenue rose from $38.20B (Q4) to $41.77B (Q1) = +9.3% QoQ, indicating improving demand/seasonality after a softer Q4.

Profitability

Fair

Net income $3.29B vs $3.43B in Q1 2025 = -4.2% YoY. Net margin contracted from ~10.1% (Q2 2025) to 7.9% (Q1 2026), suggesting cost pressure and/or mix headwinds. QoQ net income improved from $2.57B (Q4) to $3.29B (+27.9%).

Cash Flow Quality

Good

Operating cash flow $6.03B and free cash flow $5.19B in Q1 2026. Dividends paid were $2.32B; coverage appears supported by current FCF generation. No buybacks reported in the quarter, but payout capacity looks solid.

Leverage & Balance Sheet

Neutral

Total assets increased to $107.9B (from $105.1B in Q4). Equity is stable at ~$13.9B, while long-term debt remains high (~$53.0B), keeping leverage elevated (net debt ~ $61.5B).

Shareholder Returns

Neutral

Price momentum is low: 1Y change +0.99% (no >20% momentum boost). Dividend yield is ~0.75% (per provided ratios). Total shareholder return is therefore likely dividend-supported rather than growth-driven.

Analyst Sentiment & Valuation

Positive

Street target consensus $385.31 vs current price $349.4 implies upside (~+10%). High/low targets ($435/$320) suggest moderate dispersion but generally constructive sentiment.

Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.

Fundamentals Overview

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Home Depot reported Q1 2026 results broadly in line with expectations: revenue rose 4.8% to $41.8B and comps were modestly positive (+0.6%). However, profitability compressed—gross margin fell ~75 bps and operating margin declined ~100 bps YoY—mainly tied to mix from the GMS acquisition plus higher operating expense (+20 bps). Management reiterated that underlying demand remains similar to fiscal 2025, with uncertainty and housing affordability pressuring large discretionary projects, even as Pro continues to outcompete DIY. Q&A centered on why comps improved only slightly, management’s view that second-half comp improvement is largely normalization of store activity, and how Pro progress is measured (complex purchase occasions outperforming, Pro vs consumer comparisons). Operationally, the company is pushing interconnected fulfillment routing and consolidating Pro tooling into a unified digital workspace, while executing store task reallocation to MET. Guidance was reaffirmed: FY comp flat to +2%, EPS flat to +4%, and gross margin ~33.1%.

AI IconGrowth Catalysts

  • Pro outperformance vs DIY in Q1, with strength in Pro-heavy categories (power, pipe & fittings, water heaters, fasteners, paint) and improved engagement with the 'Pro who paints' customer
  • Positive spring/project engagement in favorable Northern/Western divisions and multiple positive merchandising department comps (9 of 16), including power, plumbing, electrical, storage, and kitchens
  • Double-digit YoY online comp sales growth (10%+), supported by interconnected fulfillment improvements and ship-from-best-location model
  • Record satisfaction metrics for on-time/complete delivery after sourcing logic routing improvements (reduced cancellations, improved fulfillment time, higher likelihood to shop again)

Business Development

  • Completed last week: acquisition of Mingledorff's (HVAC wholesale distributor) with 42 locations across 5 Southeastern states; aims to penetrate national HVAC parts and supplies market
  • SRS specialty distribution platform expansion via prior acquisitions/structure: SRS platform with over 1,300 branches; mentions GMS (interior building materials) and focus on cross-trade Pro distribution
  • Strategic supplier partnerships supporting merchandising value and innovation: Bayer and PPG (paint partnerships) and One Paint digital capabilities
  • Commercial/wholesale cross-sell initiative involving multiple enterprise linkages among SRS, Home Depot, and GMS; early cross-sell largely manual today

AI IconFinancial Highlights

  • Net sales $41.8B (+4.8% YoY); results in line with expectations
  • Total company comps +0.6% for Q1 (U.S. +0.4%); February +0.7%, March +2.0%, April -0.5% (U.S. April -0.8%)
  • Foreign exchange positively impacted total company comps by ~55 bps in Q1
  • Gross margin 33.0%: down ~75 bps YoY, attributed to mix change from GMS acquisition (in line with expectations)
  • Operating expense as % of sales +20 bps to 21.1% YoY; operating margin 11.9% vs 12.9% prior year (-100 bps)
  • Adjusted operating margin ex-intangibles 12.3% vs 13.2% (-90 bps)
  • Effective tax rate 24.9% vs 24.4% (+50 bps)
  • Diluted EPS $3.30 vs $3.45 prior year; adjusted diluted EPS $3.43, down ~3.7%

AI IconCapital Funding

  • Capital expenditures: ~$845M in Q1 (invested back into business)
  • Dividends paid: ~$2.3B to shareholders in Q1
  • Store growth: opened 12 new stores; store count 2,361 at quarter end
  • ROIC (trailing 12 months) 25.4% vs 31.3% prior-year period

AI IconStrategy & Ops

  • Store tasking reallocation to Merchandising Execution Team (MET): transitioned over 1,000 stores; expected completion in all stores by end of fiscal 2026 to free Orange Apron associates for customer engagement
  • Interconnected fulfillment optimization: evolving sourcing logic routing orders to optimal store by distance, inventory availability, and delivery speed to reduce cancellations and improve fulfillment time
  • Operations experience manager role reiterated (uniform operational processes; improvement to interconnected fulfillment experience)
  • Pro Digital Workspace consolidation of tools: product planning tool, AI-powered material list builder, real-time delivery tracking, purchase history, and complex order scheduling with jobsite preferences and business hours
  • Performance outcomes: on-time and complete performance described as 'record highs' with improved customer satisfaction and likelihood-to-shop-again scores

AI IconMarket Outlook

  • Fiscal 2026 guidance reaffirmed: comp sales flat to +2%
  • Total sales growth expected ~2.5% to 4.5% (reflects GMS acquisition, new stores, branches, and tuck-in acquisitions)
  • SRS expected: mid-single-digit percent organic sales growth
  • Gross margin expected ~33.1%
  • Operating margin expected ~12.4% to 12.6%; adjusted operating margin ~12.8% to 13.0%
  • Effective tax rate targeted ~24.3%
  • Net interest expense expected ~ $2.3B
  • Diluted EPS and adjusted diluted EPS both expected to increase ~flat to +4% vs fiscal 2025
  • Capital expenditures: ~2.5% of sales for fiscal 2026
  • Weather/storm commentary: storms estimated at ~56 bps impact in Q1 with expected dissipation through the rest of the year

AI IconRisks & Headwinds

  • Underlying demand described as similar to fiscal 2025 but uncertainty and housing affordability pressure limiting large discretionary projects (big ticket comp transactions positive +0.8% while large discretionary projects remain under pressure)
  • Higher rates/mortgage affordability headwinds: industry expects limited housing turnover/new construction starts; 'uncertainty holding them back' from large projects
  • Gross margin pressure from mix (GMS acquisition) and operating cost leverage challenges (operating expense up ~20 bps; operating margin down ~100 bps YoY)
  • Weather variability: seasonal 'bathtub effect' considerations; April comps softened (U.S. -0.8%); storms had ~56 bps impact in Q1
  • External volatility: management flagged a more uncertain environment vs three months ago, without changing guidance yet

Q&A: Analyst Interest

  • Topic: Sizing large-ticket project exposure and whether it’s shrinking; Management’s detailed response: HD doesn’t disclose business exposure by ticket-size dollar share. They analyze transactions and sales by ticket size cohorts (including $1,000+), items per basket, and department breadth within each basket; they can infer large cross-category projects are muted, but not provide the sales-dollar magnitude.
  • Topic: Drivers of comp trajectory through the year given uncertain underlying demand; Management’s detailed response: Management says they are not expecting a marked improvement in underlying demand. They do expect a higher comp in the second half, driven solely by a return to normal store activity, while guidance assumes the year’s comp shape is unchanged from earlier expectations.
  • Topic: Pro strategy success metrics, vertical benchmarking, and cross-sell run-rate; Management’s detailed response: Management frames Pro success as winning more share of wallet via residential Pro complex purchase occasions. They benchmark Pro performance vs consumer, highlight complex purchase occasions as highest-comping segment, and quantify cross-sell run-rate opportunity around $400M this year, mostly manual introductions today.

Sentiment: MIXED

Note: This summary was synthesized by AI from the HD Q1 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.

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© 2026 Stock Market Info — The Home Depot, Inc. (HD) Financial Profile