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The Home Depot recently released its Q3 2025 financial results, reporting a $1.1 billion increase in net sales from Q3 2024, reaching $41.4 billion in net sales.
Total sales include approximately $900 million from the recent acquisition of GMS Inc. The company also reported a 0.2% increase in comparable store sales in the third quarter. Net earnings for the third quarter were $3.6 billion. Adjusted diluted earnings per share were $3.74, compared to adjusted diluted earnings per share of $3.78 in Q3 2024.
“Our results missed our expectations primarily due to the lack of storms in the third quarter, which resulted in greater than expected pressure in certain categories,” says Ted Decker, chair, president and CEO. “Additionally, while underlying demand in the business remained relatively stable sequentially, an expected increase in demand in the third quarter did not materialize. We believe that consumer uncertainty and continued pressure in housing are disproportionately impacting home improvement demand. Our teams are continuing to execute at a high level, and we believe we are growing our market share. I would like to thank our associates for their continued hard work and dedication.”
Home Depot updated its fiscal 2025 guidance, a 52-week year compared to fiscal 2024, which was a 53-week year, to reflect its third quarter performance. The company expects total sales growth of around 3% and comparable sales growth to be slightly positive. Home Depot also plans to add approximately 12 new stores.
Richard V. McPhail, Home Depot executive vice president and chief financial officer commented on the company’s fiscal outlook in the Q3 2025 earnings call.
“Today, we are updating our fiscal 2025 guidance to include softer-than-expected results in the third quarter, continued pressure in the fourth quarter from the lack of storm activity, ongoing consumer uncertainty and housing pressure, as well as the inclusion of the GMS acquisition into our consolidated results,” he says. “We plan to continue investing in our business with capital expenditures of approximately 2.5% of sales for fiscal 2025. We believe that we will grow market share in any environment by strengthening our competitive position with our customers and delivering the best customer experience in home improvement.”
