The Home Depot reported Q3 results for the period ending November 2, 2025, showing modest revenue growth but falling short on earnings and offered a cautious outlook for the year. 

Inside the Results

  • Revenue rose approximately 2.8% year-over-year to about $41.35 billion, slightly above consensus estimates. 
  • Adjusted earnings per share (EPS) came in at $3.74, below analyst expectations of around $3.84. 
  • Comparable-store sales increased about 0.2%, and comp transactions declined roughly 1.6%. 

Why the Performance Fell Short

The company cited several headwinds:

  • A milder-than-expected storm season reduced demand for home repair and building supply products tied to weather events. 
  • A weak housing market and elevated borrowing costs continued to pressure large-scale remodeling projects. 
  • While average ticket size improved slightly, overall traffic declined, signaling cautious consumer behavior. 

Outlook and Implications for Suppliers and Brands

The Home Depot revised its full year adjusted EPS guidance to a decline of about 5% versus a prior forecast of a 2% decrease. The retailer also expects full year sales to be modestly up but has tempered its expectations for significant demand recovery in the near term. 

For home improvement brands and suppliers, this means:

  • Opportunities remain strongest in smaller-ticket, quick-turn projects rather than large-scale renovations.
  • Digital merchandising, product information, and fulfillment platforms are increasingly important as shoppers become more selective and time-sensitive.
  • Collaboration with the retailer on promotions, shelf space and bundled value offerings will help differentiate your brand in a market with muted growth.

Porchlight’s Perspective

At Porchlight, we interpret these results as a significant signal for suppliers: Steadier sales growth means you must sharpen your strategy rather than rely on broad tailwinds. Focus your efforts on value-driven products, differentiated merchandising and digital shelf optimization to stay ahead. With market conditions remaining challenging, brands that move proactively with tighter execution and more innovative offerings will be best-positioned for partnership success and incremental growth.

Additional Resources

The Home Depot’s Q3 2025 Earnings Report

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