The Home Depot, Inc. stock research
FY2025 Q2
The Home Depot (HD) Gross Margin — Quarter Ended Aug 3, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose in absolute terms. Gross margin weakened slightly from the prior quarter but remained stable versus the year-ago period.
Gross margin takeaway
Quarter ended Aug 3, 2025 · FY2025 Q2
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose in absolute terms. Gross margin weakened slightly from the prior quarter but remained stable versus the year-ago period.
- The relationship between revenue and cost of revenue drove gross profit higher, but the proportion of cost relative to revenue increased slightly, leading to a marginal gross margin decline from the prior quarter.
- Compared to the immediately preceding quarter, gross margin was lower, reflecting a slightly higher cost of revenue relative to revenue. Compared to the same quarter one year earlier, gross margin was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.4%
Gross profit
$15.1B
Revenue
$45.3B
Cost of revenue
$30.2B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
+0.0 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 |
|---|---|---|---|---|
| Oct 27, 2024 | $40.2B | $13.4B | $26.8B | 33.4% |
| Feb 2, 2025 | $39.7B | $13.0B | $26.7B | 32.8% |
| May 4, 2025 | $39.9B | $13.5B | $26.4B | 33.8% |
| Aug 3, 2025 | $45.3B | $15.1B | $30.2B | 33.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 4, 2025
-0.4 pts
Year-over-year change
Jul 28, 2024
+0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue drove gross profit higher, but the proportion of cost relative to revenue increased slightly, leading to a marginal gross margin decline from the prior quarter.
Compared to the immediately preceding quarter, gross margin was lower, reflecting a slightly higher cost of revenue relative to revenue. Compared to the same quarter one year earlier, gross margin was unchanged.
Monitor the trajectory of cost of revenue relative to revenue, as any sustained increase in this ratio could pressure gross margin.