Home Depot Inc. Stock

Home Depot, Inc. (HD.US) – FY2025 Annual Report

Home Depot’s revenue reached a new high of $164.7 billion in FY2025, though the modest 3.2% year-over-year growth appears largely attributable to its recent acquisitions, notably SRS and GMS. The core retail business seems to have experienced flat or slightly declining organic sales, while net income continued to slip for the second straight year. The company’s financial profile is increasingly shaped by its strategic pivot toward the professional contractor market, which is altering both the composition of sales and the underlying margin structure.

The most striking trend in the income statement may be the erosion of profitability even as the top line grows. Gross margin slipped from 36.2% to 35.5%, and operating margin drifted from 13.6% to 13.1%. This compression could be linked to a mix shift toward lower-margin Pro-customer sales, as well as a sharp increase in selling, general, and administrative expenses, which grew well beyond the rate of revenue. The “Other” segment—comprising the newly acquired distribution businesses—nearly doubled its revenue contribution, while the primary retail segment’s sales contracted slightly, suggesting that virtually all near-term growth is inorganic.