Home Depot vs Lowe's: Revenue, Profit and Business Model
Home Depot reported $164.7B of revenue in FY2025 and $14.2B of net income. Lowe's reported $86.3B of revenue in FY2026 and $6.7B of net income.
Latest financial snapshot
Home Depot
- Latest revenue
- $164.7B (FY2025)
- Net income
- $14.2B
- Net margin
- 8.6%
- Revenue growth
- +6.4% a year, FY2016–FY2025
Lowe's
- Latest revenue
- $86.3B (FY2026)
- Net income
- $6.7B
- Net margin
- 7.7%
- Revenue growth
- +2.9% a year, FY2016–FY2026
Financial summary
Home Depot
Sales climbed from $110.2 billion in fiscal 2019 to $151.2 billion in fiscal 2021 during the pandemic remodeling boom, peaked at $157.4 billion in fiscal 2022, and dipped to $152.7 billion in fiscal 2023. Acquisitions then pushed sales to $159.5 billion in fiscal 2024 (a 53-week year) and $164.7 billion in fiscal 2025. Net earnings fell from a $17.1 billion peak in fiscal 2022 to $14.2 billion in fiscal 2025, and GAAP diluted EPS was $14.23. For fiscal 2026, management expects total sales growth of about 2.5% to 4.5%, comparable sales between flat and up 2%, about 15 new stores, and capital spending of about 2.5% of sales. Home Depot raised its quarterly dividend 1.3% in February 2026.
Lowe's
Lowe's sales peaked at $97.1B in FY2022 during the pandemic remodeling boom, then fell to $86.4B in FY2023 and $83.7B in FY2024 as housing turnover slowed and the Canadian business was sold. FY2025 returned to growth at $86.3B with $6.65B in net income. Acquisitions drove FY2026: Q1 sales rose 10.3% to $23.1B and Q2 rose 8.3% to $26.0B, while comparable sales grew only 0.6% and 0.2%. In August 2026 management trimmed its FY2026 outlook to about $92.0B in sales, flat comps, an 11.2% operating margin and diluted EPS of about $11.75, with capital spending of up to $2.5B.
Revenue and profit by year
Home Depot
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $164.7B | $14.2B | 8.6% | +3.2% | Source |
| FY2024 | $159.5B | $14.8B | 9.3% | +4.5% | Source |
| FY2023 | $152.7B | $15.1B | 9.9% | -3.0% | Source |
| FY2022 | $157.4B | $17.1B | 10.9% | +4.1% | Source |
| FY2021 | $151.2B | $16.4B | 10.9% | +14.4% | Source |
| FY2020 | $132.1B | $12.9B | 9.7% | +19.9% | Source |
| FY2019 | $110.2B | $11.2B | 10.2% | +1.9% | Source |
| FY2018 | $108.2B | $11.1B | 10.3% | +7.2% | Source |
| FY2017 | $100.9B | $8.6B | 8.6% | +6.7% | Source |
| FY2016 | $94.6B | $8B | 8.4% | — | Source |
Lowe's
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $86.3B | $6.7B | 7.7% | +0.0% | |
| FY2025 | $86.3B | $6.7B | 7.7% | +3.1% | Source |
| FY2024 | $83.7B | $7B | 8.3% | -3.1% | Source |
| FY2023 | $86.4B | $7.7B | 8.9% | -11.0% | Source |
| FY2022 | $97.1B | $6.4B | 6.6% | +0.8% | Source |
| FY2021 | $96.3B | $8.4B | 8.8% | +7.4% | Source |
| FY2020 | $89.6B | $5.8B | 6.5% | +24.2% | Source |
| FY2019 | $72.1B | $4.3B | 5.9% | +1.2% | Source |
| FY2018 | $71.3B | $2.3B | 3.2% | +3.9% | Source |
| FY2017 | $68.6B | $3.4B | 5.0% | +5.5% | Source |
| FY2016 | $65B | $3.1B | 4.8% | — | Source |
Where the revenue comes from
Home Depot
- Store and online retail sales (DIY and Pro)
Most revenue comes from merchandise sold through 2,364 stores and homedepot.com: lumber and building materials, tools, hardware, paint, plumbing, electrical, flooring, kitchen and bath, appliances, and outdoor and garden products. Online orders are often picked up in store or delivered from local stores. Home Depot does not report store and digital sales as separate segments.
- SRS and GMS specialty distribution
More than 1,340 SRS branches, including the GMS business acquired in September 2025, sell roofing, pool, landscape, wallboard, ceilings and steel framing products to trade contractors, often delivering directly to job sites. These sales carry lower margins than store retail but give Home Depot access to large Pro spending that it previously missed.
- Installation services
Home Depot sells and arranges installation of flooring, roofing, windows, doors, HVAC, water heaters and kitchen and bath remodels. Licensed independent contractors do the work, while Home Depot handles the sale and the customer relationship.
- Tool and equipment rental
Many stores rent power tools, equipment and trucks, mainly to contractors and DIY customers working on short projects.
- Pro services and credit
Trade credit programs, Pro Xtra loyalty, dedicated outside sales teams and bulk delivery are designed to win a bigger share of each contractor's spending rather than to earn fees on their own.
Lowe's
- Retail merchandise sales
In-store and online sales of building products, appliances, tools, hardware, paint, flooring, plumbing, electrical, outdoor and seasonal goods to DIY and Pro customers.
- Pro customer sales
Contractor and property-maintenance demand supported by Pro desks, MVPs Pro Rewards, credit, job-site delivery and fulfillment tools.
- Home services and installation
Installed projects such as flooring, HVAC, roofing and cabinets coordinated by Lowe's and performed by contracted installers.
- Building-material distribution (FBM) and builder services (ADG)
Drywall, ceilings, metal framing and insulation distribution through 370+ FBM branches, plus ADG design, distribution and installation of interior finishes for home builders.
- Online and omnichannel
Lowes.com and app orders fulfilled by pickup or delivery; online sales grew 15.7% in Q2 2026.
Business model and strategy
Home Depot
How it makes money
Home Depot earns money by buying goods in huge volumes from manufacturers and reselling them at a markup through its stores, website and app. Its fiscal 2026 guidance calls for a gross margin of about 33.1%. Stores average roughly 104,000 square feet and double as local fulfillment hubs, so online orders can be picked up in store or delivered from a nearby location. DIY customers buy smaller, project-based baskets.
Growth strategy
Home Depot's growth plan has three parts. It is opening roughly a dozen new stores a year (about 15 planned in fiscal 2026). It is building a complex Pro ecosystem of trade credit, order management tools, delivery capacity and dedicated sales coverage for larger contractors.
Competitive advantage
Home Depot has three advantages. The first is scale: $164.7 billion in annual sales, nearly twice what Lowe's sells, gives it buying power with suppliers. The second is the network: 2,364 stores sit close to most U.S. households, and more than 1,340 SRS branches can deliver bulky, heavy materials such as lumber, drywall and shingles that pure online sellers struggle to ship profitably.
Lowe's
How it makes money
Lowe's runs a store-based retail model serving two customer groups. DIY homeowners buy paint, appliances, outdoor and seasonal goods, often through Lowes.com, where online sales grew 15.7% in Q2 2026. Pro customers (contractors, remodelers, property managers) buy repeatedly and in volume through Pro desks, the MVPs Pro Rewards program, job-site delivery and credit.
Growth strategy
Lowe's 'Total Home' strategy focuses on Pro penetration, online sales, home services, appliances and localized assortments.
Competitive advantage
Lowe's advantage is a dense national store network of 1,761 locations and 196 million square feet of selling space that doubles as a fulfillment system for bulky, urgent products that parcel-based e-commerce struggles to deliver economically. It is one of the largest U.S.
Questions about Home Depot vs Lowe's
Which company has higher revenue — The Home Depot, Inc. or Lowe's Companies, Inc.?
The Home Depot, Inc. reported $164.7B (FY2025), while Lowe's Companies, Inc. reported $86.3B (FY2026). By last reported revenue, The Home Depot, Inc. is the larger business, with Lowe's Companies, Inc. reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of The Home Depot, Inc. vs Lowe's Companies, Inc.?
The Home Depot, Inc.'s market capitalisation stands at $304.6B, while Lowe's Companies, Inc.'s is $109.0B. The Home Depot, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Lowe's Companies, Inc..
Which is more financially efficient — The Home Depot, Inc. or Lowe's Companies, Inc.?
The Home Depot, Inc. generates $350k / employee in revenue per employee, while Lowe's Companies, Inc. generates $313k / employee. The Home Depot, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do The Home Depot, Inc. and Lowe's Companies, Inc. make money?
The Home Depot, Inc. and Lowe's Companies, Inc. generate revenue in fundamentally different ways. The Home Depot, Inc.: Home Depot earns money by buying goods in huge volumes from manufacturers and reselling them at a markup through its stores, website and app. Lowe's Companies, Inc.: Lowe's runs a store-based retail model serving two customer groups.
Which company is valued higher relative to revenue — The Home Depot, Inc. or Lowe's Companies, Inc.?
On a price-to-sales (P/S) basis, The Home Depot, Inc. trades at 1.8x P/S and Lowe's Companies, Inc. at 1.3x P/S. The Home Depot, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Lowe's Companies, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is The Home Depot, Inc. bigger than Lowe's Companies, Inc.?
By last reported revenue, The Home Depot, Inc. ($164.7B (FY2025)) is the larger company compared to Lowe's Companies, Inc. ($86.3B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Home Depot vs Lowe's overview