So, how's the home improvement business holding up when the housing market is, let's say, not exactly booming? The Home Depot Inc. (HD) gave us a look on Tuesday with its fourth-quarter results, and the answer seems to be: surprisingly steady, all things considered.

The company reported numbers that topped what Wall Street was expecting for both revenue and adjusted profit. Not surprisingly, the stock moved up after the news.

Breaking Down the Quarter

Sales for the quarter came in at $38.198 billion. That's down 3.8% from a year ago, but it still managed to beat the analyst estimate of $38.119 billion. It's worth noting this quarter had 13 weeks, while the same period last year had 14. On a comparable sales basis—which adjusts for that kind of stuff—sales actually grew 0.4%, with U.S. comps up 0.3%.

On the bottom line, GAAP earnings per share were $2.58, down from $3.02 last year. The adjusted figure, which is what analysts focus on, was $2.72. That beat the estimate of $2.54, though it's still below last year's $3.13.

Here's an interesting dynamic: the number of comparable customer transactions fell by 1.6%. But the amount spent per trip—the average ticket—rose 2.4%. So, fewer people are coming through the doors, but those who do are spending a bit more. Total customer transactions were down a sharper 8.5%, landing at 366.5 million, with the average ticket at $91.28.

Operating income was $3.849 billion, giving the company a 10.1% operating margin. The adjusted operating margin was 10.5%.

The Full-Year Picture

Zooming out, fiscal 2025 sales increased 3.2% to $164.7 billion. Comparable sales for the year were up a modest 0.3% (0.5% in the U.S.).

GAAP diluted EPS for the year was $14.23, down from $14.91 in fiscal 2024. Adjusted diluted EPS came in at $14.69, compared to $15.24 a year earlier.

For the full year, customer transactions totaled 1,601.5 million, a decrease of 2.2%. The annual average ticket increased 1.4% to $90.56. Operating income was $20.890 billion, with an operating margin of 12.7% (13.1% on an adjusted basis).

Cash, Commentary, and a Dividend Bump

The company's cash generation saw a notable shift. Operating cash flow for the fiscal year was $16.325 billion, a significant drop from the $19.810 billion it generated in fiscal 2024. Capital expenditures totaled $3.679 billion, and the company ended the year with $1.389 billion in cash and equivalents.

CEO Ted Decker gave some context for the year. "Throughout fiscal 2025, our teams did an incredible job engaging with our customers and growing market share," he said, thanking employees. On the fourth quarter specifically, he noted, "Our results were largely in line with our expectations, reflecting the lack of storm activity in the third quarter and ongoing consumer uncertainty and pressure in housing."

Then came the key insight: "Adjusting for storms, underlying demand was relatively stable throughout the year." In other words, strip out the weird weather patterns and the general anxiety in the housing sector, and people are still fixing up their homes at a consistent pace.

In a move for shareholders, the company raised its quarterly dividend by 1.3% to $2.33 per share. It's payable on March 26, 2026, to shareholders on record as of March 12, 2026.

What's Next? The Fiscal 2026 Roadmap

Looking ahead, Home Depot laid out its expectations for the coming year. It's forecasting total sales growth in the range of 2.5% to 4.5%. Comparable sales growth is expected to be between flat and up 2.0%.

On earnings, the company projects GAAP EPS of $14.23 to $14.80. The consensus estimate was $14.79, so the high end of the guidance just tops it. For adjusted EPS, the outlook is $14.69 to $15.28, compared to an estimate of $15.07.

In dollar terms, that sales growth translates to an expected range of $168.800 billion to $172.093 billion in total sales. Analysts were looking for about $171.255 billion.

The company also provided some margin and other financial targets. It expects a gross margin around 33.1%, an operating margin between 12.4% and 12.6%, and an adjusted operating margin between 12.8% and 13.0%. Other forecasts include an effective tax rate of 24.3%, net interest expense of $2.3 billion, capital expenditures at about 2.5% of total sales, and plans to open roughly 15 new stores.