Home Depot forecasts FY 2026 sales growth of 2.5%-4.5%

Overview

• Home improvement retailer's fiscal Q4 sales slightly beat analyst expectations

• Adjusted EPS for fiscal Q4 beat analyst expectations

• Company announced 1.3% increase in quarterly dividend

Outlook

• Home Depot forecasts fiscal 2026 sales growth of 2.5% to 4.5%

• Company expects fiscal 2026 diluted EPS to grow flat to 4.0% from $14.23

• Home Depot plans to open approximately 15 new stores in fiscal 2026

Result Drivers

• SHORTER QUARTER - Q4 2025 had one less week compared to Q4 2024, impacting sales figures

• STABLE DEMAND - Co said underlying demand was stable despite lack of storm activity and consumer uncertainty

• MARKET SHARE - Co credited its teams for engaging with customers and growing market share

Company press release: ID:nCNWZBpxDa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the home improvement products & services retailers peer group is "buy"

• Wall Street's median 12-month price target for Home Depot Inc is $406.00, about 7.7% above its February 23 closing price of $376.99

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 24 three months ago

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