The Home Depot, Inc. stock research
FY2026 Q1
The Home Depot (HD) Gross Margin & Quarterly History
Explore The Home Depot, Inc. (HD) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended May 3, 2026 · FY2026 Q1
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, but gross margin improved sequentially while weakening year-over-year, with cost of revenue changing at different rates relative to revenue.
- The most notable margin driver was the sequential improvement, with revenue increasing more than cost of revenue relative to the prior quarter.
- Compared to the prior quarter, gross margin improved as revenue increased at a faster rate than cost of revenue. Compared to the same quarter last year, gross margin declined as cost of revenue increased at a faster rate than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.0%
Gross profit
$13.8B
Revenue
$41.8B
Cost of revenue
$28.0B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
-0.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Aug 3, 2025 | $45.3B | $15.1B | $30.2B | 33.4% |
| Nov 2, 2025 | $41.4B | $13.8B | $27.5B | 33.4% |
| Feb 1, 2026 | $38.2B | $12.5B | $25.7B | 32.6% |
| May 3, 2026 | $41.8B | $13.8B | $28.0B | 33.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 1, 2026
+0.4 pts
Year-over-year change
May 4, 2025
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable margin driver was the sequential improvement, with revenue increasing more than cost of revenue relative to the prior quarter.
Compared to the prior quarter, gross margin improved as revenue increased at a faster rate than cost of revenue. Compared to the same quarter last year, gross margin declined as cost of revenue increased at a faster rate than revenue.
Monitor the trend in gross margin relative to revenue and cost of revenue growth rates in upcoming quarters.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| The Home Depot, Inc. (HD) | 33.0% |