Home Depot Expects Higher Sales in FY26

By Kelly Cloonan

Home Depot expects higher sales in its next fiscal year, and anticipates growth to accelerate if housing activity gets a boost.

The home-improvement retailer said Tuesday it expects sales to grow between 2.5% to 4.5% in fiscal 2026, the midpoint of which is up from its guidance for 3% growth this fiscal year. Analysts polled by FactSet were looking for growth of 4.5%.

The company also guided for earnings per share to range between flat to up 4% and for comparable-sales growth of flat to up 2%.

Home Depot said it expects those metrics to grow at a faster clip if the housing market gains momentum and there is increased spend on larger projects, driven by pent-up demand.

The Atlanta company's market-recovery case forecasts sales will grow about 5% to 6%, earnings per share will increase about mid- to high-single digits and comparable sales will be up 4% to 5%.

"We believe that the pressures in housing will correct and provide the home improvement market with support for growth faster than the general economy, and we expect to continue to grow faster than our market," Chief Financial Officer Richard McPhail said.

In the company's accelerated recovery case, sales and earnings per share could grow faster in the event of a sharper housing recovery, McPhail said.

Home Depot also backed its outlook for the current fiscal year, guiding for sales growth of about 3%, slightly positive comparable-sales growth and an earnings-per-share decline of about 6%.

The company had cut its outlook last month as an extended downturn in home-improvement activity continued.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

December 09, 2025 07:12 ET (12:12 GMT)