How does Home Depot (HD) make money?

Home Depot (HD) generates revenue primarily from Major Product Line - Building Materials, which accounted for 28.9% of total revenue in TTM through Q2 2026. The company reported $167B in revenue and converted 8.4% of it into net profit, equivalent to roughly $14B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Home Depot (HD)?

Home Depot (HD) reported a gross profit margin of 33.1% in TTM through Q2 2026, equivalent to $55.2B in gross profit on $167B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Home Depot (HD)?

Home Depot (HD) reported an operating profit margin of 12.4% in TTM through Q2 2026, equivalent to $20.7B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Home Depot (HD)?

Home Depot (HD) reported a net profit margin of 8.4% in TTM through Q2 2026, equivalent to $14B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Home Depot (HD) profitable?

Yes. Home Depot (HD) reported $14B in net income for TTM through Q2 2026, with a net profit margin of 8.4%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Home Depot (HD) spend on capital expenditures?

Home Depot (HD) spent $3.72B on capital expenditures (CapEx) during TTM through Q2 2026, roughly 2.2% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Home Depot (HD) generate?

Home Depot (HD) generated $14.3B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 8.6%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Home Depot (HD)?

Home Depot (HD) had an effective tax rate of 24% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Home Depot (HD)?

Home Depot (HD) reports revenue across 4 reportable product segments, led by Major Product Line - Building Materials at 28.9% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Home Depot Makes Money: 2026 Visual Revenue Map

Home Depot (HD) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending May 3, 2026 (reported May 27, 2026).

Home Depot discloses geographic revenue only in annual filings. to view the full breakdown.

Home Depot (HD) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Home Depot (HD), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Major Product Line - Building Materials	$48.1B	28.9%
Major Product Line, Décor	$46.9B	28.1%
Major Product Line - Hardlines	$46.6B	28%
Other Segment	$25.1B	15%
Total	$167B	100%

Major Product Line - Building Materials$48.1B
Major Product Line, Décor$46.9B
Major Product Line - Hardlines$46.6B
Other Segment$25.1B
Total$167B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, Home Depot (HD) reports revenue across 4 reportable product segments; the largest segment was Major Product Line - Building Materials at 28.9%, followed by Major Product Line, Décor (28.1%) and Major Product Line - Hardlines (28%).

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