Home Depot Updates Strategy, Reaffirms 2025 Guidance, Previews 2026 Outlook

The Home Depot, the leading home improvement retailer, presented its strategic update during the 2025 Investor and Analyst Conference in Atlanta on December 9, 2025. The company’s executives discussed its strategic priorities, reaffirmed guidance for fiscal 2025, and offered preliminary insights into the fiscal 2026 outlook.

Strategic Priorities and Market Position

During the conference, Home Depot emphasized its strategy to enhance market share. Ted Decker, the company’s chair, president, and CEO, stated, “We are focused on growing sales and delivering exceptional shareholder returns.” He highlighted the investments made over recent years and their impact on competitive advantages.

• The business operates in a total addressable market valued at approximately $1.1 trillion.

Fiscal Year 2025 Guidance

Home Depot has reaffirmed its guidance for fiscal 2025, noting that it will be a 52-week year compared to a 53-week year in 2024. Key points include:

• Total sales growth projected at around 3%.
• Gross margin expected to be approximately 33.2%.
• Operating margin is anticipated to be about 12.6%, with adjusted operating margin at 13.0%.
• Capital expenditures expected to be around 2.5% of total sales.
• Projected net interest expense of approximately $2.3 billion.
• Diluted earnings-per-share forecasted to decline by about 6% from $14.91 in fiscal 2024.

Preliminary Fiscal Year 2026 Outlook

Home Depot provided a preliminary outlook for fiscal 2026, indicating a cautious assessment of market conditions. Highlights include:

• Expected comparable sales growth of approximately flat to 2%.
• Total sales growth projected between 2.5% and 4.5%.
• Operating margin projected at approximately 12.4% to 12.6%.

Market Recovery Case

The Home Depot also introduced a market recovery case, highlighting its expectations for better performance amid improving market conditions. Details include:

• Total sales growth could reach around 5% to 6%.
• Comparable sales growth may be in the range of 4% to 5%.
• Projected growth in diluted earnings-per-share is anticipated to be mid-to-high-single-digits.

Richard McPhail, executive vice president and chief financial officer, expressed optimism about the housing market, stating, “We believe that the pressures in housing will correct and provide the home improvement market with support for growth.”

Company Operations and Employment

As of the end of the third quarter, Home Depot operates 2,356 retail stores and over 1,200 supply chain locations across the U.S., including regions such as Puerto Rico and Canada. The company employs over 470,000 associates, reinforcing its role as a prominent employer in the sector.

Stock Information

Home Depot’s stock is traded on the New York Stock Exchange under the ticker symbol HD. The company is included in both the Dow Jones Industrial Average and the S&P 500 index.

This strategic update is vital for investors and stakeholders, providing insights into Home Depot’s future direction amidst an evolving market landscape. For more information, visit El-Balad.