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How Home Depot (HD) makes money

Home Depot (HD) made $47.9B of revenue in the second quarter fiscal 2027 (Q2 FY27), +6% from a year earlier. Net sales – products brought in $46.3B (97%); Net sales – services brought in $1.6B (3%). Of every dollar of revenue, 34¢ was left as gross profit, 14¢ was left as operating profit, 10¢ was left as net earnings.

Drawing the Sankey…

Home Depot revenue by segment, Q2 FY27Home Depot revenue by segment, Q2 FY27Net sales – products$46.3BNet sales – services$1.6B
Home Depot: revenue by line, Q4 FY26 to Q2 FY27Home Depot: revenue by line, Q4 FY26 to Q2 FY27Net sales – productsNet sales – servicesNet sales – products: $46.3B latest$46.3BNet sales – services: $1.6B latestQ4 FY26Q1 FY27Q2 FY27
The mix barely moved between Q4 FY26 and Q2 FY27.
Home Depot revenue by quarterHome Depot revenue by quarter$39.7BQ4 FY25$39.9BQ1 FY26$45.3BQ2 FY26$41.4BQ3 FY26$38.2BQ4 FY26$41.8BQ1 FY27$47.9BQ2 FY27
Home Depot: where each dollar of revenue goesHome Depot: where each dollar of revenue goesCost of revenue66¢Gross profit34¢Operating expenses19¢Operating profit14¢Income tax3¢Net earnings10¢Operating cash flow11¢Free cash flow9¢

Revenue by segment, Q2 FY27

SegmentRevenueShareQ/QY/Y
Net sales – products$46.3B96.7%+15%+6%
Net sales – services$1.6B3.3%+17%+0.6%

Where each dollar of revenue goes

LineQ2 FY27% of revenue
Revenue$47.9B100.0%
Cost of revenue$31.7B66.3%
Gross profit$16.1B33.7%
Operating expenses$9.3B19.4%
Operating profit$6.8B14.3%
Income tax$1.5B3.2%
Net earnings$4.8B10.0%
Operating cash flow$5.4B11.3%
Free cash flow$4.5B9.4%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q2 FY27$47.9B+6%
Q1 FY27$41.8B+5%
Q4 FY26$38.2B-4%
Q3 FY26$41.4B+3%
Q2 FY26$45.3B+5%
Q1 FY26$39.9B+9%
Q4 FY25$39.7B+14%

From Home Depot's 10-Q filed Aug 25, 2026 (on EDGAR).

Questions

How does Home Depot make money?

Home Depot (HD) made $47.9B of revenue in the second quarter fiscal 2027 (Q2 FY27), +6% from a year earlier. Net sales – products brought in $46.3B (97%); Net sales – services brought in $1.6B (3%). Of every dollar of revenue, 34¢ was left as gross profit, 14¢ was left as operating profit, 10¢ was left as net earnings.

What is Home Depot's biggest business?

Net sales – products: $46.3B in the second quarter fiscal 2027, 97% of revenue, +6% from a year earlier.

What is Home Depot's profit margin?

Net earnings were $4.8B, 10.0% of revenue, in the second quarter fiscal 2027; the operating margin was 14.3%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.