The quarterly results for The Home Depot, Inc. (NYSE:HD) were released last week, making it a good time to revisit its performance. It was a workmanlike result, with revenues of US$40b coming in 2.3% ahead of expectations, and statutory earnings per share of US$3.67, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Home Depot after the latest results.

After the latest results, the 37 analysts covering Home Depot are now predicting revenues of US$164.1b in 2026. If met, this would reflect a modest 6.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.4% to US$15.51. Before this earnings report, the analysts had been forecasting revenues of US$163.2b and earnings per share (EPS) of US$15.53 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target rose 5.1% to US$428despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Home Depot's earnings by assigning a price premium. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Home Depot, with the most bullish analyst valuing it at US$475 and the most bearish at US$282 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Home Depot's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.9% growth on an annualised basis. This is compared to a historical growth rate of 6.5% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.7% annually. Factoring in the forecast slowdown in growth, it looks like Home Depot is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Home Depot. Long-term earnings power is much more important than next year's profits. We have forecasts for Home Depot going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Home Depot you should be aware of.

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