The Home Depot $HD Inc. HD 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.
