Major ClientsWide moat

Home Depot (HD) — moat facet

No Home Depot customer reaches 10% of revenue and nothing is contracted beyond three months; its concentration is in the housing market, not in any client.

Home Depot has no major client in the usual sense. The 10-K says: "No sales to an individual customer accounted for more than 10% of revenue during any of the last three fiscal years"1. Customers made 1,601.5 million transactions in fiscal 20252.

Concentration checks, fiscal 2025Largest customerbelow 10% of revenueContract durationtypically three months or lessDeferred revenue$1.5bn, flatTransactions1,601.5 millionPro share (press)nearly halfHome Depot Form 10-K fiscal 2025; PYMNTS on fiscal 2025 results
Diversified by customer, concentrated by housing.

Revenue concentration and contract concentration tell the same story. There is no backlog to concentrate: performance obligations are part of contracts with expected original durations of typically three months or less3, and deferred revenue for products and services was $1.5 billion at both year ends4. Home Depot sells today what it sells today; nothing is contracted years ahead.

The customers group into three kinds: do-it-yourself homeowners, do-it-for-me customers who hire installers, and Pros5. Home Depot does not disclose the split in its 10-K; press coverage of the fiscal 2025 results put the Pro business at nearly half of total revenue6.

The concentration that exists is in the economy, not in any customer. All of them depend on the same housing market, which the 10-K says has seen historically low levels of housing turnover7.

The shareholder base is as diffuse as the customer base. There were approximately 97,000 holders of record at March 2026 and about 6,159,000 more whose shares are held through banks and brokers8. Vanguard, the largest holder, owned 100,011,247 shares9. No customer, and no shareholder, is large enough to dictate terms, which is the same diversification seen from two sides.

The absence of concentration shows in the working capital too. Receivables were $5,597 million at the end of fiscal 202510, a few days of sales, spread across millions of accounts. Even the trade credit extended to Pros is small against a balance sheet of $105,095 million11.

The customer base is wide and stable. Receivables are the one figure that hints at change: they grew 14.2% in fiscal 202512 as Pros bought on credit, and a customer base that pays later is a customer base with more risk.

Moat trajectory: Holding steady

No customer above 10%; deferred revenue flat at $1.5bn.

The number that tests this moat
Moat Explorer calc
Receivables growth, latest year
+14.2% (fiscal 2025) against net sales +3.2%

Credit extended to customers; growth far above sales means the base is buying on terms, not at the register.

How it's calculated: Receivables, net, 5,597 / 4,903 - 1, and net sales 164,683 / 159,514 - 1, fiscal 2025 10-K.
Source: Moat Explorer calculation from Home Depot filings ↗
Dig deeper
DIG DEEPER 01
No Customer Above 10% of Revenue
No Home Depot customer is more than a tenth of sales, so no buyer can set its prices, though the housing market can.
DIG DEEPER 02
The Pro: Nearly Half of Revenue
Nearly half of Home Depot's revenue comes from Pros, and the company does not disclose the figure in its own 10-K.
DIG DEEPER 03
The Homeowner Who Stopped Moving
Home Depot's homeowner customers spend when houses change hands, and turnover is at historic lows.
DIG DEEPER 04
No Backlog: $1.5 Billion of Deferred Revenue
Home Depot has nothing contracted beyond about three months, so no customer can concentrate its revenue and no order book can cushion a downturn.
References
  1. ReportedThe 10-K says: "No sales to an individual customer accounted for more than 10% of revenue during any of the last three fiscal years".
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, Pros, SRS, competition and supply chain. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  2. ReportedCustomers made 1,601.5 million transactions in fiscal 2025.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 7 MD&A: segments, comparable sales, transactions, product lines, margins and ROIC. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  3. ReportedThere is no backlog to concentrate: performance obligations are part of contracts with expected original durations of typically three months or less, and deferred revenue for products and services was $1.5 billion at both year ends.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - financial statements and notes: earnings, cash flow, balance sheet, debt and acquisitions. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  4. ReportedThere is no backlog to concentrate: performance obligations are part of contracts with expected original durations of typically three months or less, and deferred revenue for products and services was $1.5 billion at both year ends.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - financial statements and notes: earnings, cash flow, balance sheet, debt and acquisitions. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  5. ReportedThe customers group into three kinds: do-it-yourself homeowners, do-it-for-me customers who hire installers, and Pros.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, Pros, SRS, competition and supply chain. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  6. ReportedHome Depot does not disclose the split in its 10-K; press coverage of the fiscal 2025 results put the Pro business at nearly half of total revenue.
    PYMNTS on Home Depot's fiscal 2025 results: the Pro business nears half of revenue. — Fiscal 2025 · publ. 24 February 2026 · source ↗
  7. ReportedAll of them depend on the same housing market, which the 10-K says has seen historically low levels of housing turnover.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1A risk factors and Item 7A market risk: housing, interest rates, commodities and shrink. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  8. ReportedThere were approximately 97,000 holders of record at March 2026 and about 6,159,000 more whose shares are held through banks and brokers.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, real estate, supply chain and workforce. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  9. ReportedVanguard, the largest holder, owned 100,011,247 shares.
    The Home Depot proxy statement (DEF 14A) - Vanguard 10.0% and BlackRock 7.1% of the shares. — 2026 · publ. 7 April 2026 · source ↗
  10. ReportedReceivables were $5,597 million at the end of fiscal 2025, a few days of sales, spread across millions of accounts.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, Pros, SRS, competition and supply chain. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  11. ReportedEven the trade credit extended to Pros is small against a balance sheet of $105,095 million.
    The Home Depot Form 10-K for fiscal 2025 (the 52 weeks ended 1 February 2026) - Item 1 business and Item 2 properties: stores, Pros, SRS, competition and supply chain. — Fiscal 2025 · publ. 18 March 2026 · source ↗
  12. Moat Explorer calcReceivables are the one figure that hints at change: they grew 14.2% in fiscal 2025 as Pros bought on credit, and a customer base that pays later is a customer base with more risk.
    Moat Explorer calculation from The Home Depot's filings and market data ($ millions unless stated; fiscal years as Home Depot names them, fiscal 2025 = year to 1 February 2026). Segments: Primary net sales 151,966 / 152,669 - 1 = -0.5% (fiscal 2023 to 2025); Primary operating income 20,574 / 21,689 - 1 = -5.1%; Primary operating margin 21,689 / 152,669 = 14.2% (fiscal 2023), 21,313 / 153,108 = 13.9% (fiscal 2024), 20,574 / 151,966 = 13.5% (fiscal 2025); Other operating margin 213 / 6,406 = 3.3% (fiscal 2024), 316 / 12,717 = 2.5% (fiscal 2025); Other before intangible amortisation 316 + 398 = 714, 714 / 12,717 = 5.6%; Other share of net sales 12,717 / 164,683 = 7.7%; Other share of operating income 316 / 20,890 = 1.5%. Q2 fiscal 2026: Primary 42,806 / 42,157 - 1 = +1.5%, margin 6,592 / 42,806 = 15.4%; Other 5,055 / 3,120 - 1 = +62%, margin 247 / 5,055 = 4.9%; Q2 fiscal 2025 margins: Primary 6,354 / 42,157 = 15.1%, Other 201 / 3,120 = 6.4%; Q1 fiscal 2026 Primary 80,569 - 42,806 = 37,763 and 11,557 - 6,592 = 4,965, margin 13.1%; Other 9,057 - 5,055 = 4,002 and 263 - 247 = 16, margin 0.4%. Pro acquisitions 8,692 + 18,028 + 5,081 + about 1,100 = about 32,900 (HD Supply, SRS, GMS, Mingledorff's). Growth: net sales 164,683 - 159,514 = 5,169 in fiscal 2025 against about 6,300 contributed by acquisitions; fiscal 2025 over fiscal 2023 164,683 - 152,669 = 12,014, of which Other 12,717. Net sales fiscal 2017 to fiscal 2025 164,683 / 100,904 - 1 = +63%; stores 2,359 - 2,284 = 75, 75 / 2,284 = +3.3%. Traffic: transactions 1,601.5 / 1,500.8 - 1 = +6.7% (fiscal 2015 to 2025); 1,601.5 / 1,759.7 - 1 = -9.0% (fiscal 2021 to 2025); average ticket 90.56 / 58.77 - 1 = +54%. Net sales per store 164,683 / 2,359 is not meaningful because Other has no stores; Primary 151,966 / 2,359 = 64.4 per store. Margins: operating margin 21,689 / 152,669 = 14.2%, 21,526 / 159,514 = 13.5%, 20,890 / 164,683 = 12.7%; SG&A 30,702 / 28,748 - 1 = +6.8% against net sales +3.2%; Primary SG&A 28,885 / 27,822 - 1 = +3.8% against Primary net sales 151,966 / 153,108 - 1 = -0.7%; interest expense 2,412 / 1,943 - 1 = +24%; operating income / interest 20,890 / 2,412 = 8.7 times. Departments: Lighting 4,006 / 4,549 - 1 = -11.9%; Flooring 8,232 / 8,703 - 1 = -5.4%; Storage and Organization 5,054 / 4,881 - 1 = +3.5%; Appliances 13,987 / 164,683 = 8.5%. Classes fiscal 2025: 52,439 + 51,679 + 47,848 = 151,966 = Primary net sales. Net margin 14,156 / 164,683 = 8.6%; Lowe's 6.63 / 90.43 = 7.3%; Lowe's price to sales 106.20 / 90.43 = 1.17 against 1.73; Primary share 151,966 / 164,683 = 92.3%; cost of sales 164,683 - 54,865 = 109,818. Primary share Q2 fiscal 2026 42,806 / 47,861 = 89.4%; H1 net sales increase 89.6 - 85.1 = 4.5bn, GMS 2.8 / 4.5 = 62%; average ticket 89.31 / 90.36 - 1 = -1.2%; equity build 14,156 - 9,152 = 5,004; buyback authorization 11.66 / 292.52 = 4.0% of market value; depreciation and amortisation as a share of sales, Other 715 / 12,717 = 5.6%, Primary 3,344 / 151,966 = 2.2%. US share 152,170 / 164,683 = 92.4%. Mexico stores 2,359 - 2,035 - 182 = 142. Other share of net sales 6,406 / 159,514 = 4.0% (fiscal 2024), 5,055 / 47,861 = 10.6% (Q2 fiscal 2026). Sales per retail square foot 627.17 / 454.82 - 1 = +38% (fiscal 2019 to 2022), 599.92 / 627.17 - 1 = -4.3% (fiscal 2022 to 2024). Tariff refunds 685 / 47,861 = 1.4% of Q2 net sales; 685 / 16,115 = 4.3% of Q2 gross profit; refunds in inventory cost 730 - 685 = about 45. Receivables 5,597 / 4,903 - 1 = +14.2%. Capital: net debt 4,464 + 4,967 + 46,341 - 1,389 = 54,383 (1 February 2026); 316 + 4,582 + 48,485 - 1,659 = 51,724 (2 February 2025); 4,248 + 4,697 + 43,951 - 2,085 = 50,811 (2 August 2026); net debt / equity 54,383 / 12,813 = 4.2 times; goodwill and intangibles 22,344 + 10,329 = 32,673, 32,673 / 105,095 = 31.1% of total assets. Free cash flow 16,325 - 3,679 = 12,646 (fiscal 2025), 19,810 - 3,485 = 16,325 (fiscal 2024), 21,172 - 3,226 = 17,946 (fiscal 2023); dividends paid / free cash flow 9,152 / 12,646 = 72.4%; dividend per share / diluted EPS 9.20 / 14.23 = 64.7%; capex / net sales 3,679 / 164,683 = 2.2%. Average debt and equity 61,914 / 44,955 - 1 = +38%; SRS + GMS 18,028 + 5,081 = 23,109; interest expense 2,412 - 1,943 = 469; operating cash flow / dividends paid 16,325 / 9,152 = 1.8 times; free cash flow 12,646 / 17,946 - 1 = -30%; dividend per share 9.00 / 8.36 - 1 = +7.7%, 9.20 / 9.00 - 1 = +2.2%, 2.33 / 2.30 - 1 = +1.3%. Repurchases fiscal 2015-2023: 7,000 + 7,000 + 8,002 + 10,000 + 7,000 + 597 + 15,001 + 6,504 + 8,074 = 69,178; diluted shares 995 / 1,283 - 1 = -22%. H1 fiscal 2026 EPS 8.09 / 14.23 = 57%. Market: 292.52 / 14.26 = 20.5 times trailing earnings; 292.52 / 169.18 = 1.73 times sales; 292.52 / 433.37 - 1 = -32.5% from the end-2021 value; Lowe's 106.20 / 292.52 = 36%, 90.43 / 169.18 = 53% of revenue; dividend yield 9.32 / 293.20 = 3.2%; trailing diluted EPS 14.23 + 8.09 - (3.45 + 4.58) = 14.29; trailing net income 292.52 / 20.52 = about 14.26bn - segments, sales, traffic and margins. — Fiscal 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in The Home Depot's Forms 10-K and 10-Q, results releases and market data; operands shown in the source line.
Sources
Generated September 26, 2026