The Home Depot, Inc. stock research
FY2025 Q4
The Home Depot (HD) Gross Margin — Quarter Ended Feb 1, 2026
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter and was lower than the year-ago period.
Gross margin takeaway
Quarter ended Feb 1, 2026 · FY2025 Q4
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened slightly from the prior quarter and was lower than the year-ago period.
- The decline in gross profit was proportionally larger than the decline in revenue, leading to a lower gross margin. Cost of revenue decreased at a slower rate than revenue, compressing margin.
- Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Versus the same quarter last year, revenue and gross profit were also lower, with gross margin slightly below the prior-year level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
32.6%
Gross profit
$12.5B
Revenue
$38.2B
Cost of revenue
$25.7B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
-0.2 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 |
|---|---|---|---|---|
| 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% |
| Feb 1, 2026 | $38.2B | $12.5B | $25.7B | 32.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Nov 2, 2025
-0.8 pts
Year-over-year change
Feb 2, 2025
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross profit was proportionally larger than the decline in revenue, leading to a lower gross margin. Cost of revenue decreased at a slower rate than revenue, compressing margin.
Compared to the prior quarter, revenue and gross profit were lower, and gross margin weakened. Versus the same quarter last year, revenue and gross profit were also lower, with gross margin slightly below the prior-year level.
Monitor the relationship between revenue and cost of revenue trends, as cost of revenue declined less than revenue in both comparisons.