HD HOME DEPOT, INC.

Overview and Growth

Fiscal 2025 results for HOME DEPOT, INC. combined $164.68B of revenue with net income of $14.16B and an operating cash inflow of $16.32B. At $164.68B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Compared with $159.51B in fiscal 2024, revenue recorded a 3.2% year-over-year increase. Diluted earnings per share were $14.23, translating the period’s attributable earnings into the amount reported for each diluted share. Against diluted EPS of $14.91 in fiscal 2024, the current result was 4.6% lower. The revenue-to-assets relationship was 1.57x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Gross profit was $54.87B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 33.3% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced $20.89B of income after the reported operating expense base, before the remaining non-operating and tax effects. Operating margin measured 12.7%, showing the portion of revenue preserved after the full set of operating costs. The bottom-line result was net income of $14.16B, after the operating, financing, tax, and other items recognized for the period. Measured against reported revenue, net income produced a 8.6% margin after operating costs and the remaining recognized items. Before income taxes, the company reported $18.60B of earnings, providing a bridge between the operating result and final net income. The pretax margin was 11.3%, relating income before taxes directly to revenue. The company recognized $4.45B of income tax for the period, completing the transition from pretax income to net income. The effective relationship between income tax and positive pretax income was 23.9%, without assuming a statutory-rate comparison.

Liquidity and Capital Structure

At period end, the $105.09B asset base was financed through $92.28B of liabilities and $12.81B of equity. The near-term balance sheet paired $34.39B of current assets with $32.42B of current liabilities at the reporting date. Current assets covered current liabilities by 1.06x, leaving a positive buffer for near-term obligations. Cash and equivalents totaled $1.39B, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 4.3% of current liabilities, showing how much near-term coverage came from cash alone. Total debt was $49.40B, establishing the amount of borrowing carried within the company’s capital structure. The debt-to-equity relationship was 3.86x, showing how much debt the company carried for each unit of book equity. Relative to total assets, debt measured 47.0%, showing how much of the asset base was matched by borrowing. The liabilities-to-assets relationship was 87.8%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 1.3%, a balance-sheet composition measure rather than a liquidity forecast. Total assets were 9.3% higher than fiscal 2024 assets of $96.12B, measuring the company’s own balance-sheet change.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $16.32B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Operating cash flow equaled 1.15x of net income, showing how strongly accounting earnings converted into cash from operations. Capital spending was $3.68B, absorbing part of the cash generated from operations before free cash flow. Capital spending absorbed 22.5% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $12.65B of positive free cash flow for the period. Free cash flow represented 7.7% of revenue, linking post-investment cash generation with the company’s operating scale. The free-cash-flow-to-assets relationship was 12.0%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Feb 1, 2026. Analysis generated Oct 21, 2026.