The Home Depot, Inc. (NYSE:HD) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Investors in The Home Depot, Inc. (NYSE:HD) had a good week, as its shares rose 5.6% to close at US$410 following the release of its quarterly results. Results overall were respectable, with statutory earnings of US$3.67 per share roughly in line with what the analysts had forecast. Revenues of US$40b came in 2.3% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Home Depot

Taking into account the latest results, the current consensus from Home Depot's 37 analysts is for revenues of US$164.1b in 2026. This would reflect a satisfactory 6.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 5.4% to US$15.51. Yet prior to the latest earnings, the analysts had been anticipated 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 analysts reconfirmed their price target of US$426, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Home Depot at US$475 per share, while the most bearish prices it at US$282. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Home Depot shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Home Depot's revenue growth is expected to slow, with the forecast 4.9% annualised growth rate until the end of 2026 being well below the historical 6.5% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.6% 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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Home Depot going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for Home Depot that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.