Revenue
Earnings
The consensus estimate for Q2 2025 earnings per share is $4.70. This compares to adjusted EPS of $4.67 reported in Q2 2024. In Q1 2025, adjusted EPS amounted to $3.56.
Points to note
Home Depot can be expected to benefit from demand for spring-related projects as well as smaller home improvement projects. However, the pressure on larger discretionary projects is likely to have continued in the current environment. In Q1, big-ticket comp transactions, or those over $1,000, were up 0.3% YoY but engagement in larger projects like kitchen and bath remodels remained soft.
The company is expected to continue to see strength in the Pro segment. Last quarter, Pro comp sales outpaced the DIY segment. The acquisition of SRS and the continued investments in its stores to meet the needs of Pro customers are expected to yield benefits for HD. The aging housing stock, which will require continued maintenance and updates, is also a factor that will benefit the retailer.
Home Depot’s global sourcing strategy, under which over 50% of its purchases are sourced in the US, and its efforts in diversifying its global supply chain, have given it immense sourcing flexibility in the current trade environment. Against this backdrop, the company had planned to retain its prices at the same level, anticipating opportunity for share gains.