Home Depot (HD) earnings Q2 2025

Home Depot stuck by its full-year outlook on Tuesday, even as the company came in slightly shy of Wall Street’s expectations for quarterly earnings and revenue. 

The home improvement retailer reiterated that it expects full-year total sales to grow by 2.8% and comparable sales, which take out the impact of one-time factors like store openings and calendar differences, to rise about 1%. 

However, it missed Wall Street’s earnings expectations for the second straight quarter. 

Shares of Home Depot rose 3% on Tuesday.

Here’s what Home Depot reported for the fiscal second quarter compared with Wall Street’s estimates, according to a survey of analysts by LSEG:

• Earnings per share: $4.68 adjusted vs. $4.71 expected 
• Revenue: $45.28 billion vs. $45.36 billion expected

In the three-month period that ended Aug. 3, Home Depot’s net income was $4.55 billion, or $4.58 per share, down slightly from $4.56 billion, or $4.60 per share, in the year-ago period. Revenue rose almost 5% from $43.18 billion in the year-ago period. Adjusting for one-time items, including related to the value of intangible assets, Home Depot reported earnings of $4.68 per share.

The report is Home Depot’s first since May 2014 to fall short on both earnings and revenue expectations.  

Home Depot’s results reflect that the company is still waiting for a greater pickup in home improvement activity, whether spurred on by higher housing turnover, lower mortgage rates or consumers’ own shift in mentality. 

In an interview with CNBC, Chief Financial Officer Richard McPhail said the company continues to see the effects of a “deferral mindset” from homeowners, which began in roughly mid-2023.

Still, McPhail said, there are encouraging signs in the retailer’s business: Big-ticket transactions, which the company defines as over $1,000, rose 2.6% compared with the year-ago quarter. Twelve of its 16 merchandising departments posted year-over-year sales gains. And year-over-year sales trends improved in each month of the quarter, with comparable sales up 0.3% in May, 0.5% in June and 3.3% in July, he said.

“We absolutely saw momentum continue to build in our core categories throughout the quarter,” he said.

McPhail said Home Depot’s fiscal 2025 outlook does not factor in potential rate cuts by the Federal Reserve, which could spur borrowing for homebuying and bigger projects. 

“We don’t embed any point of view on the rate environment changing, nor on the demand for large projects changing,” he said. 

On the company’s earnings call, CEO Ted Decker said “some relief on mortgage rates, in particular, could help.” But he added that’s not the only factor on consumers’ minds when Home Depot surveys its customers and pros.

“The No. 1 reason for deferring the large project is general economic uncertainty,” he said. “That, you know, is larger than prices of projects, of…