Home Depot Inc. · Earnings release · 8-K Exhibit 99

EX-99.1 2 hd_exhibit991x02012026.htm EX-99.1 Document Exhibit 99.1 The Home Depot Announces Fourth Quarter and Fiscal 2025 Results; Increases Quarterly Dividend by 1.3%; Provides Fiscal 2026 Guidance ATLANTA, February 24, 2026 -- The Home Depot ® , the world's largest home improvement retailer, today reported fourth quarter and fiscal 2025 results. Fourth Quarter 2025 Sales for the fourth quarter of fiscal 2025 were $38.2 billion, a decrease of $1.5 billion, or 3.8% from the fourth quarter of fiscal 2024. The fourth quarter of fiscal 2025 consisted of 13 weeks compared with 14 weeks for the prior year. T1The 14th week in fiscal 2024 added approximately $2.5 billion of sales to the fourth quarter and the year.

Comparable sales for the fourth quarter of fiscal 2025 increased 0.4%, and comparable sales in the U.S. increased 0.3%. Net earnings for the fourth quarter of fiscal 2025 were $2.6 billion, or $2.58 per diluted share, compared with net earnings of $3.0 billion, or $3.02 per diluted share, in the same period of fiscal 2024. The 14th week in fiscal 2024 added approximately $0.30 to diluted earnings per share to the fourth quarter and the year. Adjusted (1) diluted earnings per share for the fourth quarter of fiscal 2025 were $2.72, compared with adjusted diluted earnings per share of $3.13 in the same period of fiscal 2024. The 14th week in fiscal 2024 added approximately $0.30 to adjusted diluted earnings per share to the fourth quarter and the year.

Fiscal 2025 Sales for fiscal 2025 were $164.7 billion, an increase of $5.2 billion, or 3.2% from fiscal 2024. Comparable sales for fiscal 2025 increased 0.3%, and comparable sales in the U.S. increased 0.5%. Net earnings for fiscal 2025 were $14.2 billion, or $14.23 per diluted share, compared with net earnings of $14.8 billion, or $14.91 per diluted share in fiscal 2024. Adjusted (1) diluted earnings per share for fiscal 2025 were $14.69, compared with adjusted diluted earnings per share of $15.24 in fiscal 2024. (1)    The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). As used in this earnings release, adjusted operating income, adjusted operating margin, and adjusted diluted earnings per share are non-GAAP financial measures.

Refer to the end of this release for an explanation of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. "Throughout fiscal 2025, T2our teams did an incredible job engaging with our customers and growing market share, and I would like to thank them for their hard work and dedication," said Ted Decker, chair, president and CEO. "For the fourth quarter, our results were largely in-line with our expectations, T3reflecting the lack of storm activity in the third quarter and T4ongoing consumer uncertainty and pressure in housing. T5Adjusting for storms, underlying demand was relatively stable throughout the year." Dividend Declaration The Company today announced that its T6board of directors approved a 1.3% increase in its quarterly dividend to $2.33 per share, which equates to an annual dividend of $9.32 per share.

The dividend is payable on March 26, 2026, to shareholders of record at the close of business on March 12, 2026. This is the 156th consecutive quarter the Company has paid a cash dividend. Fiscal 2026 Guidance The company provides the following guidance for fiscal 2026: • G1Total sales growth of approximately 2.5% to 4.5% • G2Comparable sales growth of approximately flat to 2.0% • G3Approximately 15 new stores • G4Gross margin of approximately 33.1% • G5Operating margin of approximately 12.4% to 12.6% • G6Adjusted (1) operating margin of approximately 12.8% to 13.0% • G7Effective tax rate of approximately 24.3% • G8Net interest expense of approximately $2.3 billion • G9Diluted earnings-per-share to grow approximately flat to 4.0% from $14.23 in fiscal 2025 • G10Adjusted (1) diluted earnings-per-share to grow approximately flat to 4.0% from $14.69 in fiscal 2025 • G11Capital expenditures of approximately 2.5% of total sales The Home Depot will conduct a conference call today at 9 a.m.

ET to discuss information included in this news release and related matters. The conference call will be available in its entirety through a webcast and replay at ir.homedepot.com/events-and-presentations. At the end of the fourth quarter, T7the company operated a total of 2,359 retail stores and over 1,250 SRS locations across all 50 states, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Guam, 10 Canadian provinces and Mexico. The Company employs over 470,000 associates. The Home Depot's stock is traded on the New York Stock Exchange (NYSE: HD) and is included in the Dow Jones industrial average and Standard & Poor's 500 index. ### Cautionary Note Regarding Forward-Looking Statements Certain statements contained herein constitute "forward-looking statements" under the federal securities laws, including as defined in the Private Securities Litigation Reform Act of 1995.

Forward-looking statements are based on currently available information and our current assumptions, expectations and projections about future events, and use words such as "may," "will," "could," "should," "would," "anticipate," "intend," "estimate," "project," "plan," "believe," "expect," "target," "prospects," "potential," "commit" and "forecast," or words of similar import or meaning or refer to future time periods. Forward-looking statements may relate to, among other things: our brand and reputation; the demand for our products and services, including as a result of macroeconomic conditions and changing customer preferences and expectations; net sales growth; comparable sales; the effects of competition; implementation of interconnected retail, store, supply chain, technology, innovation and other strategic initiatives, including with respect to real estate; inventory, on-shelf availability, and in-stock positions; the state of the economy; the state of the housing and home improvement markets; the state of the credit markets, including mortgages, home equity loans, and consumer and trade credit; the impact of tariffs; trade policy changes or restrictions, or international trade disputes and efforts and ability to continue to diversify our supply chain; issues related to the payment methods we accept; demand for credit offerings including trade credit; management of relationships with our associates, jobseekers, suppliers and service providers; cost and availability of labor; costs of fuel and other energy sources; events that could disrupt our business, supply chain, technology infrastructure, or demand for our products and services, such as tariffs, trade policy changes or restrictions or international trade disputes, natural disasters, climate change, public health issues, cybersecurity events, labor disputes, geopolitical tensions or conflicts, military conflicts, or acts of war; our ability to maintain a safe and secure store environment; our ability to address expectations regarding sustainability and human capital management matters and meet related goals; continuation or suspension of share repurchases; net earnings and margin performance; earnings per share; future dividends; capital allocation and expenditures; productivity; liquidity; return on invested capital; expense and debt leverage; changes in interest rates; changes in foreign currency exchange rates; commodity or other price inflation and deflation; our ability to issue debt on terms and at rates acceptable to us; the impact and expected outcome of investigations, inquiries, claims, and litigation, including compliance with related settlements; the challenges of operating in international markets; the adequacy of insurance coverage; the effect of accounting charges; the effect of adopting certain accounting standards; the impact of legal and regulatory changes, including executive orders and other administrative or legislative actions, such as changes to tax laws and regulations; store openings and closures; financial outlook, including guidance for fiscal 2026; and the impact of acquired companies, including SRS and GMS, on our organization and the ability to recognize the anticipated benefits of completed or pending acquisitions.

These statements are not guarantees of future performance and are subject to future events, risks and uncertainties – many of which are beyond our control, dependent on the actions of third parties, or currently unknown to us – as well as potentially inaccurate assumptions that could cause actual results to differ materially from our historical experience and our expectations and projections. These risks and uncertainties include, but are not limited to, those described in Part I, Item 1A. "Risk Factors," and elsewhere in our Annual Report on Form 10-K for our fiscal year ended February 2, 2025 and also as described from time to time in reports subsequently filed with the Securities and Exchange Commission.

There also may be other factors that we cannot anticipate or that are not described herein, generally because we do not currently perceive them to be material. Such factors could cause results to differ materially from our expectations. Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our filings with the Securities and Exchange Commission and in our other public statements. Non-GAAP Financial Measures To provide additional transparency, we supplement our disclosure with certain non-GAAP financial measures.

When used in conjunction with our GAAP financial measures, we believe these supplemental non-GAAP financial measures will help management and investors to better understand and analyze our performance. However, this supplemental information should not be considered in isolation or as a substitute for the related GAAP measures. Refer to the end of this release for an explanation and definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. For more information, contact : Financial Community News Media Isabel Janci Sara Gorman Vice President of Investor Relations and Treasurer Senior Director of Corporate Communications 770-384-2666 770-384-2852 isabel_janci@homedepot.com sara_gorman@homedepot.com THE HOME DEPOT, INC. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)   Three Months Ended (1) Fiscal Year Ended (2) in millions, except per share data February 1, 2026 February 2, 2025 % Change February 1, 2026 February 2, 2025 % Change Net sales $ 38,198  $ 39,704  (3.8) % $ 164,683  $ 159,514  3.2  % Cost of sales 25,732  26,670  (3.5) 109,818  106,206  3.4  Gross profit 12,466  13,034  (4.4) 54,865  53,308  2.9  Operating expenses: Selling, general and administrative 7,772  7,725  0.6  30,702  28,748  6.8  Depreciation and amortization 845  814  3.8  3,273  3,034  7.9  Total operating expenses 8,617  8,539  0.9  33,975  31,782  6.9  Operating income 3,849  4,495  (14.4) 20,890  21,526  (3.0) Interest and other (income) expense: Interest income and other, net (43) (30) 43.3  (124) (201) (38.3) Interest expense 594  638  (6.9) 2,412  2,321  3.9  Interest and other, net 551  608  (9.4) 2,288  2,120  7.9  Earnings before provision for income taxes 3,298  3,887  (15.2) 18,602  19,406  (4.1) Provision for income taxes 727  890  (18.3) 4,446  4,600  (3.3) Net earnings $ 2,571  $ 2,997  (14.2) % $ 14,156  $ 14,806  (4.4) % Basic weighted average common shares 993  991  0.2  % 993  990  0.3  % Basic earnings per share $ 2.59  $ 3.02  (14.2) $ 14.26  $ 14.96  (4.7) Diluted weighted average common shares 995  994  0.1  % 995  993  0.2  % Diluted earnings per share $ 2.58  $ 3.02  (14.6) $ 14.23  $ 14.91  (4.6) Three Months Ended (1)   Fiscal Year Ended (2) Selected sales data: February 1, 2026 February 2, 2025 % Change February 1, 2026 February 2, 2025 % Change Comparable sales (% change) 0.4  % 0.8  % N/A 0.3  % (1.8) % N/A Comparable customer transactions (% change) (3) (1.6) % 0.6  % N/A (1.0) % (1.0) % N/A Comparable average ticket (% change) (3) 2.4  % 0.2  % N/A 1.4  % (0.9) % N/A Customer transactions (in millions) (3) 366.5  400.4  (8.5) % 1,601.5  1,637.2  (2.2) % Average ticket (3) $ 91.28  $ 89.11  2.4  $ 90.56  $ 89.31  1.4  ————— (1) Three months ended February 1, 2026 includes 13 weeks.

Three months ended February 2, 2025 includes 14 weeks. (2) Fiscal year ended February 1, 2026 includes 52 weeks. Fiscal year ended February 2, 2025 includes 53 weeks. (3) Customer transactions and average ticket measures do not include results from HD Supply or SRS (including GMS).   THE HOME DEPOT, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) in millions February 1, 2026 February 2, 2025 Assets Current assets: Cash and cash equivalents $ 1,389  $ 1,659  Receivables, net 5,597  4,903  Merchandise inventories 25,817  23,451  Other current assets 1,588  1,670  Total current assets 34,391  31,683  Net property and equipment 28,021  26,702  Operating lease right-of-use assets 9,204  8,592  Goodwill 22,344  19,475  Intangible assets, net 10,329  8,983  Other assets 806  684  Total assets $ 105,095  $ 96,119  Liabilities and Stockholders' Equity Current liabilities: Short-term debt $ 4,464  $ 316  Accounts payable 11,491  11,938  Accrued salaries and related expenses 2,529  2,315  Current installments of long-term debt 4,967  4,582  Current operating lease liabilities 1,418  1,274  Other current liabilities 7,555  8,236  Total current liabilities 32,424  28,661  Long-term debt, excluding current installments 46,341  48,485  Long-term operating lease liabilities 8,160  7,633  Other long-term liabilities 5,357  4,700  Total liabilities 92,282  89,479  Total stockholders' equity 12,813  6,640  Total liabilities and stockholders' equity $ 105,095  $ 96,119  THE HOME DEPOT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)   Fiscal Year Ended (1) in millions February 1, 2026 February 2, 2025 Cash Flows from Operating Activities: Net earnings $ 14,156  $ 14,806  Reconciliation of net earnings to net cash provided by operating activities: Depreciation and amortization, excluding amortization of intangible assets 3,514  3,336  Intangible asset amortization 607  425  Stock-based compensation expense 522  442  Changes in working capital (3,084) 679  Changes in deferred income taxes 418  15  Other operating activities 192  107  Net cash provided by operating activities 16,325  19,810  Cash Flows from Investing Activities: Capital expenditures (3,679) (3,485) Payments for businesses acquired, net (5,410) (17,644) Other investing activities 109  98  Net cash used in investing activities (8,980) (21,031) Cash Flows from Financing Activities: Proceeds from short-term debt, net 4,148  316  Proceeds from long-term debt, net of discounts 2,161  10,010  Repayments of long-term debt (5,040) (1,536) Repurchases of common stock —  (649) Proceeds from sales of common stock 314  395  Cash dividends (9,152) (8,929) Other financing activities (145) (301) Net cash used in financing activities (7,714) (694) Change in cash and cash equivalents (369) (1,915) Effect of exchange rate changes on cash and cash equivalents 99  (186) Cash and cash equivalents at beginning of period 1,659  3,760  Cash and cash equivalents at end of period $ 1,389  $ 1,659  ————— (1) Fiscal year ended February 1, 2026 includes 52 weeks.

Fiscal year ended February 2, 2025 includes 53 weeks. NON-GAAP FINANCIAL MEASURES Adjusted operating income, adjusted operating margin (calculated as adjusted operating income divided by total net sales), and adjusted diluted earnings per share are presented as supplemental financial measures in the evaluation of our business that are not required by or presented in accordance with GAAP. The Company excludes the impact of amortization expense from acquired intangible assets from adjusted operating income and adjusted operating margin, and the impact of amortization expense from acquired intangible assets, including the related tax effects, from adjusted diluted earnings per share. We do not adjust for the revenue that is generated in part from the use of our acquired intangible assets.

Amortization expense, unlike the related revenue, is not affected by operations in any particular period unless an intangible asset becomes impaired, or the useful life of an intangible asset is revised. When used in conjunction with our GAAP results, we believe these non-GAAP measures provide investors with meaningful supplemental measures of our performance period to period, make it easier for investors to compare our underlying business performance to peers, and align to how management analyzes trends and evaluates performance internally. The Company provides non-GAAP financial information on this basis to facilitate comparability when we report earnings results. These non-GAAP measures should not be considered in isolation or as a substitute for their comparable GAAP financial measures.

Investors should rely primarily on our GAAP results and use non-GAAP financial measures only supplementally in making investment decisions. Our calculation of non-GAAP measures may not be comparable to similarly titled measures reported by other companies and other companies may not define these non-GAAP financial measures in the same way, which may limit their usefulness as comparative measures. RECONCILIATION OF ADJUSTED OPERATING INCOME AND ADJUSTED OPERATING MARGIN Three Months Ended (1) Fiscal Year Ended (2) USD in millions February 1, 2026 February 2, 2025 % Change February 1, 2026 February 2, 2025 % Change Operating income (GAAP) $ 3,849  $ 4,495  (14.4) % $ 20,890  $ 21,526  (3.0) % Operating margin (3) 10.1  % 11.3  % 12.7  % 13.5  % Acquired intangible asset amortization (4) 171  145  607  425  Adjusted operating income (Non-GAAP) $ 4,020  $ 4,640  (13.4) % $ 21,497  $ 21,951  (2.1) % Adjusted operating margin (Non-GAAP) (5) 10.5  % 11.7  % 13.1  % 13.8  %   ————— (1)    Three months ended February 1, 2026 and February 2, 2025 includes 13 and 14 weeks, respectively. (2)    Fiscal year ended February 1, 2026 and February 2, 2025 includes 52 and 53 weeks, respectively. (3)    Operating margin is calculated as operating income divided by total net sales. (4)    Amounts include acquired intangible asset amortization of $118 million and $398 million during the three and twelve months ended February 1, 2026, respectively, and $93 million and $218 million during the three and twelve months ended February 2, 2025, respectively, related to SRS Distribution, Inc., and its subsidiaries. (5)    Adjusted operating margin is calculated as adjusted operating income divided by total net sales.

Our adjusted operating margin guidance for fiscal 2026 excludes an expected approxim ately 40 basis point im pact from acquired intangible asset amortization. RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE Three Months Ended (1) Fiscal Year Ended (2) per share amounts February 1, 2026 February 2, 2025 % Change February 1, 2026 February 2, 2025 % Change Diluted earnings per share (GAAP) $ 2.58  $ 3.02  (14.6) % $ 14.23  $ 14.91  (4.6) % Impact of acquired intangible asset amortization 0.17  0.14  0.61  0.43  Income tax impact of non-GAAP adjustment (3) (0.03) (0.03) (0.15) (0.10) Adjusted diluted earnings per share (Non-GAAP) $ 2.72  $ 3.13  (13.1) % $ 14.69  $ 15.24  (3.6) %   ————— (1)    Three months ended February 1, 2026 and February 2, 2025 includes 13 and 14 weeks, respectively.

The 14th week of the fourth quarter of fiscal 2024 increased adjusted diluted earnings per share by approximately $0.30. (2)    Fiscal year ended February 1, 2026 and February 2, 2025 includes 52 and 53 weeks, respectively. The 53rd week of fiscal 2024 increased adjusted diluted earnings per share by approximately $0.30. (3)    Calculated as the per share impact of acquired intangible asset amortization multiplied by the Company's effective tax rate for the period. Our adjusted diluted earnings per share guidance for fiscal 2026 excludes an expected after-tax impact of a pproximately $0.50 from acquired intangible asset amortization.