Home Depot, Inc. (HD) announced Sunday it's doubling down on artificial intelligence by expanding its strategic partnership with Alphabet Inc.'s (GOOG) Google Cloud. The move brings agentic AI tools to customers and professionals, delivering what the company hopes will be real-time expert guidance for anyone tackling a home improvement project.

What's Actually Changing

The partnership revolves around Google Cloud's Gemini models and Gemini Enterprise for Customer Experience. Home Depot is building what it calls an "AI-first" experience that works seamlessly across platforms—think of it as having a knowledgeable orange-aproned associate available wherever you happen to be.

The company plans to roll out these AI capabilities through several channels in the coming months. That includes new agentic shopping experiences via Google Search's AI Mode and the Gemini app, plus upgrades to Home Depot's existing Magic Apron assistant. There's also AI-powered product list builders specifically designed for professional contractors, renovators, and remodelers, along with new tools for in-store associates and customer support teams.

The idea is straightforward: instead of wandering the aisles wondering if you need a Phillips or flathead screwdriver, you'll have AI-powered expertise ready to answer questions whether you're at home planning a project, on a jobsite making purchasing decisions, or standing in the store looking at forty different types of hinges.

What The Companies Are Saying

Jordan Broggi, EVP Customer Experience and President – Online at Home Depot, framed it this way: "By building on Google Cloud's AI solutions, we're putting 'Orange Apron' expertise in the pocket of every customer and creating an AI experience that is personalized, contextual, and available wherever the customer is, whether that's the home, the jobsite, or in the aisles of our stores."

Jose Gomes, vice president of Retail & Consumer Packaged Goods at Google Cloud, added: "The Home Depot is leading in the agentic commerce era, and using AI to deliver real-world value. By integrating Google Cloud's AI, The Home Depot is ensuring that customer interactions—whether from a pro on a jobsite or a shopper in an aisle—are powered by the most sophisticated intelligence available today."

The Business Reality

This AI push comes as Home Depot navigates a challenging housing market. In December 2025, the company reaffirmed its fiscal 2025 outlook, projecting roughly 3% total sales growth and slightly positive comparable sales on a comparable 52-week basis.

The profit picture is less rosy. Home Depot now expects adjusted diluted EPS to decline about 5% from $15.24. Looking ahead to fiscal 2026, the company's preliminary outlook assumes the home-improvement market will range from down 1% to up 1%—basically flat.

HD Price Action: Home Depot shares were down 0.25% at $373.71 during premarket trading on Monday.