Home Depot Reports Q3 Earnings: Modest Growth Driven by Pros Demand
Home Depot reported sales of $41.4 billion for the third quarter of fiscal 2025, an increase of 2.8% compared to the same period last year. This growth was helped by strong demand from professional builders and contractors, even as do-it-yourself spending remained slower.
The sales figure includes about $900 million from Home Depot's recent acquisition of GMS Inc., reflecting eight weeks of GMS's sales within the quarter. Home Depot has focused on attracting more professional customers, such as contractors and roofers, as the overall housing market continues to be slow.
Despite beating quarterly sales estimates, Home Depot's stock dropped due to an earnings miss and a cautious outlook. Weakness in the housing market and fewer severe storms have impacted overall demand for home improvement projects.
The stock fell because the company's earnings did not meet expectations and the outlook remains cautious due to a slow housing market.
Sales were supported by strong demand from professional contractors and by recent sales from the acquisition of GMS Inc.
A slow housing market and fewer home improvement projects can reduce demand for Home Depot's products and services.
The acquisition added about $900 million in sales for the quarter, helping to increase Home Depot's overall revenue.
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