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Home Depot Misses Profit, Cuts Outlook as Housing Slump Stifles Big Projects

A weak housing backdrop plus a rare lack of fall storms pressured big-ticket demand, executives said.

Overview

  • For Q3, revenue rose to about $41.4 billion and topped forecasts, while adjusted EPS of $3.74 missed expectations.
  • Comparable sales were nearly flat, up 0.2% overall and 0.1% in the U.S., with customer transactions down roughly 1.4%–1.6% and the average ticket up about 1.8% to $90.39.
  • The company cut full‑year profit guidance to about a 5% decline in adjusted EPS (GAAP ~$14.02; adjusted ~$14.48) and nudged its sales outlook to roughly 3% growth including an estimated $2 billion lift from GMS as it builds out its pro contractor platform after the SRS and GMS deals.
  • Management pointed to a lack of storms and persistent housing and consumer uncertainty as key headwinds, and said tariff‑related price increases were modest and not broadly hurting demand.
  • Shares fell several percent after the report, and investors are watching Lowe’s results for further read‑through on home‑improvement spending.