The Home Depot, Inc. stock research
FY2025 Q3
The Home Depot (HD) Gross Margin — Quarter Ended Nov 2, 2025
Revenue, gross profit, and cost of revenue all moved lower from the prior quarter, while gross margin remained unchanged. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin stable.
Gross margin takeaway
Quarter ended Nov 2, 2025 · FY2025 Q3
Revenue, gross profit, and cost of revenue all moved lower from the prior quarter, while gross margin remained unchanged. Compared to the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, with gross margin stable.
- Gross margin was unchanged both sequentially and year-over-year, indicating that the relationship between revenue and cost of revenue moved in proportion.
- Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were lower, but gross margin was stable. Compared to the same quarter one year earlier, all three metrics were higher, with gross margin unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.4%
Gross profit
$13.8B
Revenue
$41.4B
Cost of revenue
$27.5B
Quarter-over-quarter change
+0.0 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 |
|---|---|---|---|---|
| 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% |
| Nov 2, 2025 | $41.4B | $13.8B | $27.5B | 33.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 3, 2025
+0.0 pts
Year-over-year change
Oct 27, 2024
+0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin was unchanged both sequentially and year-over-year, indicating that the relationship between revenue and cost of revenue moved in proportion.
Compared to the immediately preceding quarter, revenue, gross profit, and cost of revenue were lower, but gross margin was stable. Compared to the same quarter one year earlier, all three metrics were higher, with gross margin unchanged.
Monitor whether gross margin can sustain its stable level if revenue and cost of revenue continue to move in opposite directions.