The Home Depot is expanding its use of artificial intelligence (AI) and ecommerce tools aimed at professional contractors in its fiscal Q4 2025, which ended Feb. 1, 2026, as it grew online sales more than 10%.
The home improvement retailer seeks to deepen engagement with Pros and capture market share in a muted housing environment. During Home Depot’s fiscal Q4 2025 earnings call, CEO Edward Decker said the retailer is rolling out new AI-driven project management capabilities to simplify how contractors plan and source materials.
“With the advent of AI tools, we’re introducing a number of project management and list builders for our Pros,” Decker said. He added that contractors can type in the type of project they’re working on and receive a pre-populated materials list that they can edit, save and reuse for future jobs.
Decker also cited the launch of “an AI takeoff scheme,” which allows Pros to generate project material lists directly from job specifications, reducing manual entry and speeding up order assembly.
Home Depot online sales in Q4 2025
Home Depot said sales through its online platforms increased approximately 11% in Q4 2025 compared with the same period last year. Furthermore, Home Depot ecommerce sales accounted for 11% of total sales in Q4. And executives said online B2B sales outpaced overall online growth, driven by expanded Pro features.
Michael Rowe, executive vice president of Pro, said the company’s digital “projects tool” is seeing “tens of thousands of projects each week being started.” They contribute to higher conversion rates and greater engagement on complex transactions.
Rowe said the retailer also continues to invest in trade credit capabilities, pricing tools and order management systems that support contractors across large and recurring purchases.
How Home Depot targets improved deliveries
To improve fulfillment reliability, Home Depot has expanded real-time delivery tracking to big and bulky items, including flatbed lumber shipments and appliances.
Jordan Broggi, executive vice president of customer experience and president of online, said the rollout enables customers to track large deliveries live, like parcel tracking for smaller items. He described the feature as “a really big win for our customers.”
John Deaton, executive vice president of supply chain and product development, said the company also deployed new handheld devices for delivery drivers. The devices track delivery status and help ensure job-site requirements are met.
Home Depot said it fulfills more than 50% of its online orders through stores. That underscores the importance of integrating digital ordering with in-store operations.
Home Depot’s 2026 sales outlook
For its fiscal 2025, Home Depot reported sales of $164.7 billion, up 3.2% from the prior year. Comparable sales rose 0.3% for the year, including a 0.5% increase in the U.S.
Adjusted diluted earnings per share were $14.69, compared with $15.24 in fiscal 2024.
In the fourth quarter, total sales were $38.2 billion. Comparable sales increased 0.3% in the U.S. and 0.4% companywide. Furthermore, comparable sales from the Pro segment outperformed the DIY segment in Q4.
Looking ahead to fiscal 2026, the company expects total sales growth of 2.5% to 4.5% and comparable sales growth ranging from flat to 2%. Adjusted diluted earnings per share are expected to increase flat to 4%.
Decker said the company will continue investing in stores, interconnected fulfillment and Pro-focused capabilities regardless of market conditions.
“We believe we will grow market share in any environment by strengthening our competitive position with our customers and delivering the best customer experience in home improvement,” Decker said.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s update on Home Depot online sales.
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