Home Depot Inc (NYSE:HD, ETR:HDI) is scheduled to release its third quarter earnings on November 18, with Bank of America analysts expecting a modest improvement in comparable store sales.
According to Bank of America, model projections suggest a 1.3% increase in Q3 comps, slightly above the 1% reported in the second quarter.
“This is directionally consistent with Bloomberg credit and debit card data as observed sales increased 1.6% in fiscal Q3 versus 0.8% observed in fiscal Q2, led by an improvement in average transaction value,” the analysts wrote.
Wall Street analysts on average expect Home Depot’s Q3 revenue to increase 2.1% year-over-year to $41 billion, with earnings per share set to increase to $3.82 from $3.78.
Data for the quarter indicates that momentum was stronger in August but slowed in October, reflecting a tougher comparison to last year’s hurricane-related sales boost, Bank of America noted.
The analysts expect a slight sequential improvement in the second half of the year, supported by a favorable comparison to last year’s currency impact and modest price increases to offset tariffs.
“Fiscal 2026/calendar 2025 guidance assumes a slight sequential comp improvement in H2 from +0.9% reported in H1, which could benefit from the lap of FX pressure in H2 last year,” the analysts wrote.
Home Depot’s recent acquisition of GMS, completed in September for an implied enterprise value of $5.5 billion, adds a fourth vertical focused on drywall, steel framing, and ceilings to serve the complex professional customer segment.
While GMS will not contribute to Q3 comparable store sales, analysts highlighted the opportunity for growth in trade credit and order management capabilities.
“We continue to view the rollout of trade credit as a significant opportunity given few thousand Pros utilizing it now versus approximately 9 million Pros HD serves,” they wrote.
Despite ongoing macroeconomic uncertainty, the bank maintains a positive outlook on Home Depot’s long-term prospects, with a ‘Buy’ rating and $450 price target. Shares currently trade at about $363.
“We expect HD to see continued share gains as it accelerates growth and capabilities with the complex Pro,” the analysts concluded.