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Home Depot Sets Muted 2026 Targets as Housing Weakness Weighs on Big Projects

Executives attribute the outlook to weak housing activity.

Overview

  • Preliminary fiscal 2026 guidance calls for comparable sales of flat to up 2% and adjusted EPS of flat to up about 4%, both below typical analyst estimates.
  • Management projects total sales growth of roughly 2.5% to 4.5% with an operating margin target of 12.4% to 12.6% and adjusted operating margin of 12.8% to 13%.
  • The company reaffirmed its fiscal 2025 outlook, including about 3% total sales growth with contributions from the GMS acquisition and 12 planned store openings.
  • Home Depot outlined a market‑recovery case with comparable sales up 4% to 5%, total sales up 5% to 6%, and mid‑to‑high‑single‑digit EPS growth if housing activity rebounds.
  • Leaders highlighted investments in employees, store operations, and pro offerings, plans to open 15 to 20 stores per year near term, and a goal to grow faster than the overall market.