Home Depot beat Wall Street earnings and revenue expectations despite a quarterly sales decline, underscoring resilience in a weak housing market. The retailer reported a roughly 4 percent drop in fourth-quarter sales as higher interest rates, low home turnover, and cautious consumer spending weighed on demand.
Even so, earnings reached $2.72 per share on revenue of $38.2 billion, topping analyst forecasts. Comparable sales edged higher, and larger-ticket purchases increased, signaling stability among professional contractors.
Home Depot reaffirmed its full-year outlook, projecting modest sales and earnings growth. Executives cited a “frozen” housing market and rising consumer uncertainty tied to affordability and job security. The company has responded by tightening costs, including layoffs and a return-to-office policy.
Home Depot tops expectations in the fourth quarter, but customers pull back on spending https://t.co/2UY2c6nOXA
— The Associated Press (@AP) February 24, 2026
Lower mortgage rates could provide some relief heading into the spring selling season. The company is also navigating tariff uncertainty after a Supreme Court ruling invalidated parts of President Donald Trump’s tariff policy, though Home Depot says it is well positioned to manage any impact.
Home Depot raised its quarterly dividend and continues expanding its professional services business.
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TIPP Staff
