By Nicholas Miller

Home Depot reported lower fourth-quarter profit as economic uncertainty, high interest rates and a stagnant housing market continue to weigh on home improvement activity.

The company reported net income of $2.6 billion, or $2.58 a share, down from $3 billion, or $3.02 a share, the year prior.

Adjusted earnings were $2.72 a share. Analysts polled by FactSet expected $2.53 a share.

Sales fell 3.8% to $38.2 billion, beating Wall Street's forecast of $38.09 billion.

Comparable sales increased 0.4%.

The company reiterated its fiscal 2026 guidance of comparable sales growth of flat to 2% and adjusted earnings-per-share growth of flat to 4%.

Home Depot has said that economic uncertainty, including slipping home prices and a wobbly job market, have led homeowners to delay remodeling projects. High interest rates have also particularly curtailed discretionary upgrades that homeowners typically fund with financing, while a stagnant housing market has limited the home improvement projects that come with housing turnover.

Write to Nicholas Miller at nicholas.miller@wsj.com

(END) Dow Jones Newswires

February 24, 2026 06:00 ET (11:00 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.