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The Home Depot, Inc. (HD) Operating Margin: 12.68%

Is The Home Depot, Inc.’s operating margin high or low?

The Home Depot, Inc.'s operating margin of 12.68% is 11% below its 5-year average of 14.18%, near the low end of its 5-year range (12.68%–15.27%).

The operating margin for The Home Depot, Inc. (HD) is 12.68% as of Tuesday, June 9, 2026. It is below its 12-month average by 3.10% (13.09%).

HD Operating Margin Chart

HD Operating Margin
12.68%-6.00% 1Y
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HD Average Operating Margin Chart

HD Current vs Average Operating Margin Chart

HD Operating Margin Metrics

OPERATING MARGIN

12.68%

OPERATING MARGIN AVG TTM

13.09%

OPERATING MARGIN AVG 3Y

13.46%

OPERATING MARGIN AVG 5Y

14.18%

OPERATING MARGIN AVG 10Y

14.22%

OPERATING MARGIN AVG 15Y

13.30%

OPERATING MARGIN AVG 20Y

12.11%

CURRENT VS TTM AVG

-3.10%

CURRENT VS 3Y AVG

-5.79%

CURRENT VS 5Y AVG

-10.57%

CURRENT VS 10Y AVG

-10.82%

CURRENT VS 15Y AVG

-4.69%

CURRENT VS 20Y AVG

+4.75%

HD Competitors' Operating Margin

NAMEMARKET CAPOPERATING MARGINTTM3Y5Y
The Home Depot, Inc. (HD)12.68%13.09%13.46%14.18%
Alibaba Group Holding Limited (BABA)$279.34B5.83%9.98%10.89%10.70%
McDonald's Corporation (MCD)$200.54B46.10%45.64%44.35%43.35%
The TJX Companies, Inc. (TJX)$182.13B11.89%11.54%10.87%9.18%
Booking Holdings Inc. (BKNG)$127.07B34.48%33.16%30.87%22.83%
Lowe's Companies, Inc. (LOW)$121.88B11.77%11.93%12.56%12.52%
Starbucks Corporation (SBUX)$111.02B9.63%12.29%13.81%13.10%
Marriott International, Inc. (MAR)$103.79B15.81%15.41%15.95%12.87%
MercadoLibre, Inc. (MELI)$83.20B11.08%11.87%12.07%9.62%
Hilton Worldwide Holdings Inc. (HLT)$77.99B22.37%21.79%22.30%16.16%

Operating Efficiency

Gross Margin

33.3%

Operating Margin

12.7%

The Home Depot, Inc. Operating Margin Formula & Definition

Operating Margin = Operating Income / Revenue

Operating margin is the percentage of revenue remaining after operating expenses, reflecting operating efficiency.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

The Home Depot, Inc. Operating Margin FAQ

What is the operating margin for The Home Depot, Inc. (HD)?
The operating margin for HD stock is 12.68%.
Is The Home Depot, Inc.'s operating margin high or low?
The Home Depot, Inc.'s operating margin of 12.68% is 11% below its 5-year average of 14.18%, near the low end of its 5-year range (12.68%–15.27%).
What is the TTM average operating margin for The Home Depot, Inc. (HD)?
The TTM average operating margin for HD stock is 13.09%.
What is the 3Y average operating margin for The Home Depot, Inc. (HD)?
The 3Y average operating margin for HD stock is 13.46%.
What is the 5Y average operating margin for The Home Depot, Inc. (HD)?
The 5Y average operating margin for HD stock is 14.18%.
What is the 10Y average operating margin for The Home Depot, Inc. (HD)?
The 10Y average operating margin for HD stock is 14.22%.
What is the 15Y average operating margin for The Home Depot, Inc. (HD)?
The 15Y average operating margin for HD stock is 13.30%.
What is the 20Y average operating margin for The Home Depot, Inc. (HD)?
The 20Y average operating margin for HD stock is 12.11%.

The Home Depot, Inc. Operating Margin History

DATEOPERATING MARGIN
2026-02-0112.68%
2025-02-0213.49%
2024-01-2814.21%
2023-01-2915.27%
2022-01-3015.24%
2021-01-3113.84%
2020-01-3114.37%
2019-01-3114.35%
2018-01-3114.55%
2017-01-3114.19%
2016-01-3113.30%
2015-01-3112.59%
2014-01-3111.63%
2013-01-3110.39%
2012-01-319.46%
2011-01-318.59%
2010-01-317.26%
2009-01-316.11%
2008-01-319.36%
2007-01-3111.22%
2006-01-3111.49%
2005-01-3110.84%
2004-01-3110.56%
2003-01-3110.01%
2002-01-319.21%
2001-01-319.16%
2000-01-319.87%
1999-01-318.81%
1998-01-318.28%
1997-01-317.81%