Home Depot flags rising unease among homeowners
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Home Depot released its earnings on Feb. 24, 2026. Photo: Scott Olson/Getty Images
Home Depot beat expectations Tuesday, offering a mixed read on the U.S. consumer: financially resilient — but increasingly uneasy.
Why it matters: The home improvement giant serves one of the economy's strongest spending groups — middle- and upper-income homeowners — making any shift in their confidence an early read on broader consumer demand.
Driving the news: Company executives said customers are worried about housing affordability, job stability and higher financing costs — pressures the company doesn't expect to ease quickly.
- The housing market remains stuck near historic lows for turnover, and Home Depot said it hasn't seen a clear catalyst for a rebound.
By the numbers: Q4 sales totaled $38.2 billion, down 3.8% from a year earlier. The year-over-year comparison reflects a 53rd week in last year's fourth quarter that added approximately $2.5 billion in sales.
- Comparable sales rose 0.4%. Transactions fell 1.6%, while average ticket rose 2.4%.
- Big-ticket transactions (over $1,000) rose 1.3%, while larger discretionary remodels remain under pressure.
The company's shares rose more than 3% by midday Tuesday.
Between the lines: Neil Saunders, managing director at GlobalData, said housing transactions fell 6.3% in the quarter, weighing on demand tied to buying and selling homes.
- "The market did not play ball … with the number of projects undertaken down by 1.5%, mostly driven by a sharp decline in bigger-ticket projects," he said.
What's next: Home Depot forecast 2026 comparable sales between flat and up 2%, saying affordability pressures and consumer uncertainty are likely to persist.
Editor's note: This story was updated with additional information.
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