Home Depot Misses Q3 Earnings Expectations Amid Storm Absence and Housing Pressure

The Home Depot (HD) reported mixed third-quarter results for fiscal 2025. Adjusted diluted earnings per share came in at $3.74, falling short of the expected $3.83 consensus estimate by 2.45%. However, revenue reached $41.4 billion, beating expectations by 0.56% and growing 2.8% year-over-year.

Despite these numbers, Home Depot's earnings missed expectations due to a combination of factors, including the absence of storm activity, persistent housing market pressure, and a consumer spending environment that has yet to recover its appetite for big-ticket home improvement projects. Comparable sales barely turned positive at 0.2%, while comparable customer transactions declined 1.6%.

The recently acquired GMS Inc. contributed approximately $900 million in incremental revenue over approximately eight weeks, helping lift the top line. However, acquisition-related amortization of $158 million weighed on margins, compressing adjusted operating margin to 13.3% from 13.8% a year ago.