The Home Depot, Inc. (HD) AI Stock Analysis

The Home Depot, Inc. operates as a retailer specializing in home improvement products and services. Through its store network, the company sells building materials, home decor items, lawn and garden supplies, and facilities maintenance products. It also provides installation services for flooring, cabinets, countertops, HVAC systems, and windows. The Home Depot serves homeowners, professional renovators, general contractors, maintenance professionals, and specialty tradespeople like electricians, plumbers, and painters. In addition to physical stores, the company operates digital platforms including homedepot.com, blinds.com, and thecompanystore.com. Headquartered in Atlanta, Georgia, it operated over 2,300 stores across the United States as of December 31, 2021.

Between FY2022 and FY2026, Home Depot grew revenue from $151.16B to $164.68B, reflecting a 5-year revenue CAGR of 4.5%. Gross margin held steady at 33.6% in FY2022 and 33.3% in FY2026. However, operating margin fell from 15.2% in FY2022 to 12.7% in FY2026, while net margin declined from 10.9% to 8.6%. Over this timeframe, annual net income fell from $16.43B to $14.16B, and diluted EPS moved from $15.52 to $14.70. For the latest quarter ended July 31, 2026, quarterly revenue growth was 5.7% year-over-year, and quarterly earnings grew 4.6% year-over-year, bringing trailing twelve months revenue to $169.18B and EPS to $14.37.

As of the quarter ended July 31, 2026, The Home Depot held $2.08B in cash and short-term investments against $62.57B in total debt, resulting in net debt of $60.48B. The company closed the quarter with a current ratio of 1.08 and a debt-to-equity ratio of 3.77 on $16.62B of shareholders' equity. In FY2026, the company generated $16.32B in operating cash flow and $12.65B in free cash flow. Home Depot allocated $3.68B to capital expenditures and paid $9.15B in dividends during FY2026.

At a share price of $309.63 as of October 16, 2026, Home Depot traded at a trailing P/E of 21.5x and a forward P/E of 19.8x. These multiples stand above the median of its S&P 500 Consumer Cyclical peers, which posted a trailing P/E of 19.7x and a forward P/E of 15.6x. The company's EV/EBITDA of 14.5x also trades above the peer median of 13.2x, while its price-to-sales of 1.8x sits below the peer median of 2.0x. Over the past year, Home Depot shares fell 17.8%, underperforming the 16.8% return for the S&P 500.

Home Depot pays a quarterly dividend with an annual forward payout of $9.32 per share, representing a 3.01% dividend yield. The company has paid consecutive dividends for 40 years, with a 5-year annualized dividend growth rate of 8.9%. Its payout ratio stands at 62.7%, and the most recent ex-dividend date was September 3, 2026.

Wall Street analysts maintain 18 Strong Buy, 4 Buy, and 14 Hold ratings on Home Depot, with 0 Sell or Strong Sell ratings. The mean price target is $379.75, representing a 22.6% upside compared to the last close of $309.63. For the current fiscal year ending January 31, 2027, consensus estimates project revenue of $171.55B and EPS of $15.02. Home Depot beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 17, 2026.

This page is an AI-written research summary of The Home Depot, Inc. (HD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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