Home Depot Q4 2025 Earnings Beat Expectations with $3.13 EPS, But 2025 Outlook Disappoints

Home Depot (HD) delivered impressive fourth-quarter 2024 results, surpassing Wall Street estimates, yet tempered its outlook for 2025, reflecting a more conservative growth forecast.

For Q4, Home Depot reported adjusted earnings per share (EPS) of $3.13 on revenues of $39.70 billion, outperforming analysts’ expectations of $3.03 EPS and $39.12 billion in revenue, according to Visible Alpha data.

Looking ahead, the home improvement leader projects total sales growth of approximately 2.8% in 2025, with comparable store sales rising by 1%. These figures fall short of analyst predictions, which anticipated 3.27% total sales growth and a 1.88% increase in comparable sales for the year.

Home Depot also forecasted a slight decline in full-year adjusted EPS by about 2%, down from $15.24 in 2024, whereas analysts expected a rise to $15.63. Despite this, the company announced a 2.2% increase in its quarterly dividend, raising it to $2.30 per share.

Following the earnings release, Home Depot’s shares rose approximately 2.5% in early trading, building on a 3% gain over the past 12 months.

Comparable Store Sales Show Positive Momentum

In Q4, Home Depot’s comparable store sales grew 0.8% year-over-year, defying analyst forecasts of a 1.48% decline. This marks a reversal after eight consecutive quarters of declines, with expectations for comparable sales to turn positive in Q1 2025.

Both Home Depot and competitor Lowe’s (LOW) have cited inflationary pressures and a post-pandemic slowdown in home improvement projects as factors impacting sales. Lowe’s is scheduled to announce its Q4 results on Wednesday.

Update: This article reflects the latest share price movement and dividend announcement from Home Depot.

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