HD Stock Gains Despite Q4 Sales And EPS Decline – What Happened?

• Q4 adjusted diluted EPS came in at $2.72, down from $3.13 in the year-ago period but above Street estimates of $2.52.
• Home Depot’s board approved a 1.3% increase in quarterly dividend to $2.33 per share, payable on March 26.
• The company said high mortgage rates, rising home prices, and economic uncertainty reduced demand for home-related projects and purchases.

Shares of Home Depot (HD) climbed 3% on Tuesday as the retailer topped Wall Street’s fourth-quarter expectations, cushioning the impact of a year-over-year sales and earnings decline.

Q4 sales fell 3.8% to $38.20 billion, but came just above analysts’ estimates of $38.03 billion, according to Fiscal.ai data. The latest quarter included 13 weeks, compared with 14 weeks in the prior-year period, the company said.

Q4 adjusted diluted earnings per share (EPS) were $2.72, down from $3.13 in the year-ago period but above the Street estimates of $2.52. The extra week in fiscal 2024 contributed roughly $0.30 to EPS for both the fourth quarter and the full year.

The company’s board also approved a 1.3% increase in its quarterly dividend to $2.33 per share, which equates to an annual dividend of $9.32 per share, payable on March 26, 2026.

Demand Impacted By Macro-Economic Headwinds

The company said high mortgage rates, rising home prices, and economic uncertainty have kept housing activity low, reducing demand for home-related projects and purchases.

“As we look ahead to fiscal 2026, we anticipate these pressures will persist, as we have not yet seen a catalyst for an inflection in housing activity,” Richard McPhail, Executive VP and CFO, told analysts in a call.

For fiscal 2026, the company expects total sales to rise about 2.5% to 4.5%, with comparable sales ranging from flat to 2% higher. Adjusted diluted EPS is projected to grow between flat and 4% from $14.69 in fiscal 2025.

How Did Stocktwits Users React?

Retail sentiment on Stocktwits turned ‘extremely bullish’ from ‘bullish’ a day earlier, amid ‘extremely high’ message volumes. HD was among the top trending tickers at the time of writing.

One user noted the stock’s movement is range-bound.

Another user called the guidance “mid.”

The stock has gained more than 13% so far in 2026.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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