How does Home Depot (HD) make money?

Home Depot (HD) primarily makes money through Major Product Line - Building Materials, which accounts for 29.4% of total revenue. For TTM through Q1 2026, Home Depot generated $164.68B in total revenue with a net profit margin of 8.6%.

What is Home Depot (HD) gross profit margin?

Home Depot (HD) reported a gross profit margin of 33.3% for TTM through Q1 2026, equivalent to $54.87B in gross profit. This means Home Depot retains 33.3% of each revenue unit after direct costs of production.

What is Home Depot (HD) operating profit margin?

Home Depot (HD) reported an operating profit margin of 12.7% for TTM through Q1 2026, equivalent to $20.89B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Home Depot (HD) net profit margin?

Home Depot (HD) reported a net profit margin of 8.6% for TTM through Q1 2026, equivalent to $14.16B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

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

Home Depot (HD) spent $3.68B on capital expenditures in TTM through Q1 2026 (2.2% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Home Depot (HD) free cash flow?

Home Depot (HD) generated $12.65B in free cash flow for TTM through Q1 2026 (7.7% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is Home Depot (HD) effective tax rate?

Home Depot (HD) had an effective tax rate of 23.9% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

How Home Depot (HD) Makes Money: A Visual Guide

Home Depot (HD) generated $164.68B in revenue, earning $14.16B in net profit (8.6% margin). Its largest revenue source is Major Product Line - Building Materials (29.4% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Home Depot (HD) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending February 1, 2026 (reported March 18, 2026).

Frequently asked questions

How does Home Depot (HD) make money?: Home Depot (HD) primarily makes money through Major Product Line - Building Materials, which accounts for 29.4% of total revenue. For TTM through Q1 2026, Home Depot generated $164.68B in total revenue with a net profit margin of 8.6%.
What is Home Depot (HD) gross profit margin?: Home Depot (HD) reported a gross profit margin of 33.3% for TTM through Q1 2026, equivalent to $54.87B in gross profit. This means Home Depot retains 33.3% of each revenue unit after direct costs of production.
What is Home Depot (HD) operating profit margin?: Home Depot (HD) reported an operating profit margin of 12.7% for TTM through Q1 2026, equivalent to $20.89B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Home Depot (HD) net profit margin?: Home Depot (HD) reported a net profit margin of 8.6% for TTM through Q1 2026, equivalent to $14.16B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Home Depot (HD) spend on capital expenditures?: Home Depot (HD) spent $3.68B on capital expenditures in TTM through Q1 2026 (2.2% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Home Depot (HD) free cash flow?: Home Depot (HD) generated $12.65B in free cash flow for TTM through Q1 2026 (7.7% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Home Depot (HD) effective tax rate?: Home Depot (HD) had an effective tax rate of 23.9% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q1 2026.