Home Depot issues cautious outlook for fiscal 2026

Core Viewpoint - Home Depot has provided a cautious preliminary outlook for its fiscal 2026, indicating no expected near-term recovery in the housing market [1] Financial Projections - For fiscal 2026, comparable sales are expected to remain flat to increase by up to 2%, while total sales are projected to rise between 2.5% and 4.5% [1] - Diluted earnings per share are anticipated to be flat to increase by around 4% [2] - The company reaffirms its fiscal 2025 outlook, expecting total sales growth of approximately 3%, with the acquisition of GMS contributing roughly $2 billion in additional sales [2] Operational Metrics - Comparable sales for the 52-week period are projected to be slightly positive, with plans to open 12 new stores [3] - Gross margin is guided at around 33.2%, with operating margin expected to be approximately 12.6% and adjusted operating margin at around 13% [3] Market Recovery Scenarios - In a market recovery scenario, total sales growth could range from 5% to 6%, with comparable sales increasing by 4% to 5% [4] - Operating profit is expected to grow faster than sales, with diluted earnings per share projected to rise in mid-to-high single digits [4][5] Accelerated Recovery Case - In an accelerated recovery case, sales and earnings per share could grow faster if there is a sharper recovery in the housing market [6] - As of the end of Q3 2025, Home Depot operates 2,356 retail stores and over 1,200 SRS locations across all 50 US states, employing more than 470,000 associates [6]