Home Depot (NYSE:HD) posted mixed third-quarter results on Tuesday, delivering higher-than-expected revenue but missing profit forecasts—sending the stock down 1.8% in early trading. The home improvement giant continues to face headwinds tied to consumer caution and a sluggish housing backdrop.
The company reported adjusted EPS of $3.74, falling below Wall Street’s expected $3.84. Revenue reached $41.4 billion, narrowly topping the consensus estimate of $41.18 billion and rising 2.8% year over year. The total included roughly $900 million in sales from the acquisition of GMS Inc., contributing about eight weeks of revenue in the period.
Comparable sales showed minimal growth, rising 0.2% globally and 0.1% in the U.S., underscoring soft demand across several categories.
“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,” said 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.”
In response to the weaker-than-hoped performance, Home Depot adjusted its full-year 2025 outlook. The company now anticipates overall sales growth of roughly 3%, and expects comparable sales to be “slightly positive” for the 52-week period. Adjusted diluted EPS is projected to fall by about 5% compared with fiscal 2024’s $15.24.
Management pointed to continued consumer hesitancy and pressure in the housing market as factors weighing on home improvement spending. Still, Decker emphasized confidence in the company’s execution, adding, “Our teams are continuing to execute at a high level and we believe we are growing our market share.”