Home Depot posts 2.8% sales growth, completes $5.5B GMS acquisition amid flat comps

Filed November 25, 2025 · Period ending November 2, 2025 · ~2 min read

Key Changes

• high

  Q3 net sales rose 2.8% to $41.4B with earnings of $3.62/share, but comparable sales up only 0.2% as higher ticket (+1.8%) offset fewer transactions (-1.6%). Customer focus on smaller projects and lack of hurricane demand weighed on growth.

  MD&A: Q3 Results verify on EDGAR →
• high

  Completed GMS acquisition for ~$5.5B cash in September, adding specialty building products distribution. GMS contributed $892M in Q3 sales but pressured margins and drove ROIC down 520 bps to 26.3% due to acquisition financing.

  MD&A: GMS Acquisition verify on EDGAR →
• high

  Generated $13.0B operating cash flow in nine months, paid $6.9B in dividends (raised 2.2% to $2.30/share), and expanded commercial paper program to $11.0B to fund GMS deal. Share buybacks remain paused since SRS acquisition.

  MD&A: Capital Allocation verify on EDGAR →