The Home Depot, Inc. (HD) Stock: Q125 Revenue Beats but EPS Misses as Small Projects Drive Modest Gains

TLDR

Home Depot stock trades at $378 after Q1 earnings release on May 20 Revenue grew 9.4% year-over-year to $39.86 billion, topping estimates EPS missed slightly at $3.56 versus $3.59 expected Comparable U.S. store sales rose 0.2%, beating expectations The company maintains full-year guidance despite housing market concerns

Home Depot Inc. (NYSE: HD) reported first-quarter earnings on May 20, 2025, with the stock trading at $378.27, down 0.29% as of writing.

The Home Depot, Inc. (HD) Stock

For the quarter ended May 4, the company posted revenue of $39.86 billion, a 9.4% increase from the same period last year and above the $39.4 billion Zacks estimate.

However, earnings per share (EPS) came in slightly below expectations at $3.56, compared to the consensus forecast of $3.59 and last year’s $3.63. Net income for the quarter stood at $3.43 billion, down from $3.6 billion a year earlier.

$HD | Home Depot Q1 Earnings Highlights

🔹 Revenue: $39.86B (Est. $39.27B) 🟢; +9.4% YoY
🔹 Adj EPS: $3.56 (Est. $3.59) 🔴; -3.0% YoY
🔹 S.S.S: -0.3% (Est. -0.2%) 🔴
🔸 Not raising prices because of tariffs

FY26 Guide:
🔹 Comparable Sales Growth: About +1.0% (Est. +1.15%) 🔴
🔹… pic.twitter.com/Yg8cy2QxiH

— Wall St Engine (@wallstengine) May 20, 2025

 

Mixed Performance Across Key Retail Metrics

Comparable store sales, a critical performance indicator in retail, declined 0.3% globally, short of the expected 0.3% increase. In the U.S., though, same-store sales rose by 0.2%, beating the estimated 1% decline.

Other retail metrics showed mixed results. The average transaction value was $90.71, slightly below the $91.74 estimate. However, customer transactions increased to 394.8 million, surpassing the 390.8 million analyst forecast. Sales per store reached $16.96 million, above the estimated $16.71 million.

The number of stores remained steady at 2,350, consistent with expectations.

Customers Focus on Small Projects

Home Depot noted increased customer engagement in smaller home improvement projects during the quarter. CEO Ted Decker said the company saw solid participation in spring events and smaller renovations, even as big-ticket spending remained under pressure.

High borrowing costs and inflation have led many homeowners to delay major renovation work. This shift has created a challenging environment for home improvement retailers, as large-scale spending has not rebounded.

Home Depot’s Prices to Stay Put Despite Tariffs

Despite escalating tariffs, Home Depot has no plans to raise prices, thanks to its vast scale, strong supplier relationships, and diversified sourcing strategy. CFO Richard McPhail emphasized that more than half of the retailer’s products are U.S.-sourced, and no single country outside the U.S. will account for more than 10% of imports by next year.

JUST IN: Home Depot will NOT raise prices in response to President Trump’s tariffs, and the CEO said by this time next year, no single country outside the U.S. will represent more than 10% of the company’s purchases.

“Because of our scale, strong partnerships with our suppliers,… pic.twitter.com/XMVvP33luE

— RedWave Press (@RedWave_Press) May 20, 2025

This strategic flexibility enables the company to absorb cost pressures and maintain stable pricing, setting it apart from competitors like Walmart, which recently announced price hikes. McPhail sees this approach as a competitive advantage that could help Home Depot and its suppliers gain market share.

Outlook Remains Steady

Despite near-term headwinds, Home Depot reaffirmed its full-year projection of approximately 2.8% sales growth. The company has opted to maintain guidance while competitors have pulled or reduced forecasts due to trade and economic uncertainty.

Year-to-date, Home Depot stock is down 2.48%, but it has gained 14.36% over the past year, outperforming the S&P 500’s 12.04% increase. Over a five-year period, HD shares have climbed 78.46%, though trailing the S&P 500’s 100.13% return.

 

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