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Home Depot HD Operating margin

Operating margin at other companies

Lowe's Companies logo
Lowe's CompaniesLOW
11.5%-0.8pp
Tractor Supply Company logo
Tractor Supply CompanyTSCO
9.3%-0.4pp
Amazon logo
AmazonAMZN
11.5%+0.5pp
Ferguson Enterprises logo
Ferguson EnterprisesFERG
8.7%-0.1pp
Williams-Sonoma logo
Williams-SonomaWSM
18%-0.1pp
AutoZone logo
AutoZoneAZO
18%-1.6pp

Other financials

Income statement

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Revenue$41.8B+4.8%
Gross profit$13.8B+2.4%
Operating income$5.0B-3.0%
Net income$3.3B-4.2%
EPS (diluted)$3.30-4.4%

Balance sheet

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Cash & equivalents$1.6B+17.0%
Total debt$62.6B-2.6%
Total equity$13.9B+74.4%
Total assets$107.90B+8.8%

Cash flow

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Operating cash flow$6.0B+39.5%
CapEx$844.0M+4.7%
Free cash flow$5.2B+47.4%

Valuation

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Market cap$326.54B-14.2%
Enterprise value$387.52B-12.6%
P/E23.3×-2.7×
P/S-0.4×

Profitability

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Gross margin33.1%-0.2pp
Net margin8.4%-0.6pp

Returns & leverage

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Return on equity128.4%-171pp
Debt / equity4.5×-3.6×
Current ratio0.0×

Where this comes from

Calculated from Home Depot’s reported figures.

Based on trailing twelve months.

The official record: Home Depot’s 10-Q, filed May 27, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Home Depot's operating margin?
Home Depot (HD) reported operating margin of 12.4% in Q1 2026.
How has Home Depot's operating margin changed year-over-year?
Home Depot's operating margin decreased by 6.0% year-over-year, from 13.2% to 12.4%.
What is the long-term trend for Home Depot's operating margin?
Over 4 years (2021 to 2025), Home Depot's operating margin has grown at a -3.5% compound annual growth rate (CAGR), from 59.8% to 52%.
What does operating margin mean?
The profit left from core operations for every dollar of sales, before interest and taxes.
How do you interpret operating margin?
Expanding operating margin shows operating leverage — revenue growing faster than the cost base. Compression points to rising overhead, pricing pressure, or investment ahead of revenue.
How does operating margin compare across companies?
Strong cross-company signal within a sector. Capital-light businesses sustain higher operating margins than capital-intensive ones.