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Home Depot's Pro Business: Key Growth Lever Amid Slow Demand?
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Key Takeaways
HD's Pro segment beats DIY with positive comps, driven by repair demand in gypsum, concrete and plumbing.
HD invests in salesforce, delivery and trade credit, using B2B tools to boost engagement and project sales.
HD's SRS and GMS integration expands Pro reach; management expects mid-single-digit SRS growth for FY26.
The Home Depot Inc. (HD - Free Report) is increasingly dependent on its Pro segment as a critical growth driver amid a muted demand backdrop, shaped by weak housing turnover and cautious consumer spending. While broader home improvement activity remains pressured, the company’s Pro business continues to demonstrate relative resilience, outperforming DIY and delivering positive comparable sales.
The strength is particularly evident in Pro-heavy categories such as gypsum, concrete, plumbing and electrical, wherein demand is tied more to essential repairs and ongoing projects rather than discretionary big-ticket spending. This aligns with management’s observation of a “repair over replace” trend, as customers delay large-scale renovations but continue maintenance work.
Home Depot is doubling down on its Pro ecosystem, enhancing its salesforce capabilities, order management, delivery reliability and trade credit offerings. Investments in digital tools, including AI-enabled project planning and B2B platforms, are driving higher engagement and conversion, particularly for complex, large-scale purchases.
The integration of SRS and GMS further strengthens Home Depot’s Pro value proposition, unlocking cross-selling opportunities and expanding its reach across professional end markets. Despite industry-wide softness, evident in steep declines in roofing volumes, SRS gained share, underscoring execution strength even in a challenging environment.
Management expects mid-single-digit growth in SRS and continued Pro momentum in fiscal 2026, supported by ongoing capability buildout. While macro headwinds persist, the Pro segment’s stickier demand profile and higher spend intensity position it as a key lever for market share gains and long-term growth.
Is Lowe’s & Floor & Decor Pro Business Driving Growth?
As Lowe’s Companies Inc. (LOW - Free Report) and Floor & Decor Holdings Inc. (FND - Free Report) navigate a subdued home improvement cycle, the spotlight is on whether their Pro segments are emerging as key drivers of growth and market share gains.
Lowe’s continues to see its Pro segment as a key growth lever, delivering another quarter of gains despite a challenging housing backdrop. Strength is driven by investments in assortment, inventory, job-site delivery and digital tools, alongside an expanded Pro salesforce. With stable Pro backlogs and traction in planned spend, Lowe’s is leveraging this stickier demand base to offset softer DIY trends and support overall growth.
Floor & Decor’s Pro business remains a critical growth lever despite muted demand. Pro customers account for roughly half of sales, with influence extending further across projects. The company is expanding supply-house capabilities, enhancing delivery and planning a Pro Loyalty 2.0 relaunch to deepen engagement and raise switching costs. Installation materials and Pro sales showed growth, underscoring wallet-share gains and reinforcing the strategy to drive resilience in a slower flooring market.
The Zacks Rundown for HD
Home Depot’s shares have lost 5.8% in the past year compared with the industry’s 10% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 21.08X, higher than the industry’s average 19.21X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HD’s fiscal 2026 and 2027 earnings implies year-over-year growth of 2.3% and 8.8%, respectively. Earnings estimates for fiscal 2026 and 2027 have inched down 0.2%, each, in the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Home Depot's Pro Business: Key Growth Lever Amid Slow Demand?
Key Takeaways
The Home Depot Inc. (HD - Free Report) is increasingly dependent on its Pro segment as a critical growth driver amid a muted demand backdrop, shaped by weak housing turnover and cautious consumer spending. While broader home improvement activity remains pressured, the company’s Pro business continues to demonstrate relative resilience, outperforming DIY and delivering positive comparable sales.
The strength is particularly evident in Pro-heavy categories such as gypsum, concrete, plumbing and electrical, wherein demand is tied more to essential repairs and ongoing projects rather than discretionary big-ticket spending. This aligns with management’s observation of a “repair over replace” trend, as customers delay large-scale renovations but continue maintenance work.
Home Depot is doubling down on its Pro ecosystem, enhancing its salesforce capabilities, order management, delivery reliability and trade credit offerings. Investments in digital tools, including AI-enabled project planning and B2B platforms, are driving higher engagement and conversion, particularly for complex, large-scale purchases.
The integration of SRS and GMS further strengthens Home Depot’s Pro value proposition, unlocking cross-selling opportunities and expanding its reach across professional end markets. Despite industry-wide softness, evident in steep declines in roofing volumes, SRS gained share, underscoring execution strength even in a challenging environment.
Management expects mid-single-digit growth in SRS and continued Pro momentum in fiscal 2026, supported by ongoing capability buildout. While macro headwinds persist, the Pro segment’s stickier demand profile and higher spend intensity position it as a key lever for market share gains and long-term growth.
Is Lowe’s & Floor & Decor Pro Business Driving Growth?
As Lowe’s Companies Inc. (LOW - Free Report) and Floor & Decor Holdings Inc. (FND - Free Report) navigate a subdued home improvement cycle, the spotlight is on whether their Pro segments are emerging as key drivers of growth and market share gains.
Lowe’s continues to see its Pro segment as a key growth lever, delivering another quarter of gains despite a challenging housing backdrop. Strength is driven by investments in assortment, inventory, job-site delivery and digital tools, alongside an expanded Pro salesforce. With stable Pro backlogs and traction in planned spend, Lowe’s is leveraging this stickier demand base to offset softer DIY trends and support overall growth.
Floor & Decor’s Pro business remains a critical growth lever despite muted demand. Pro customers account for roughly half of sales, with influence extending further across projects. The company is expanding supply-house capabilities, enhancing delivery and planning a Pro Loyalty 2.0 relaunch to deepen engagement and raise switching costs. Installation materials and Pro sales showed growth, underscoring wallet-share gains and reinforcing the strategy to drive resilience in a slower flooring market.
The Zacks Rundown for HD
Home Depot’s shares have lost 5.8% in the past year compared with the industry’s 10% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 21.08X, higher than the industry’s average 19.21X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HD’s fiscal 2026 and 2027 earnings implies year-over-year growth of 2.3% and 8.8%, respectively. Earnings estimates for fiscal 2026 and 2027 have inched down 0.2%, each, in the past 30 days.
Image Source: Zacks Investment Research
HD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.