No Customer Above 10% of RevenueWide moat

Home Depot (HD) — moat facet

No Home Depot customer is more than a tenth of sales, so no buyer can set its prices, though the housing market can.

Home Depot's customer base is as diversified as a business can be. No sales to an individual customer accounted for more than 10% of revenue in any of the last three years1, and the stores handled 1,601.5 million customer transactions in fiscal 2025 at an average ticket of $90.562.

Fiscal 2025 revenue by type ($M)159,029Products5,654ServicesHome Depot Form 10-K fiscal 2025
Almost all product, sold one basket at a time.

Diversification protects against one kind of risk. No buyer can negotiate the price down, walk away with a tenth of sales or go bankrupt and leave a hole. Products were $159,029 million of revenue in fiscal 2025 and services $5,654 million3, sold to millions of households and contractors.

It does not protect against the other kind. All those customers respond to the same interest rates and the same housing market. The 10-K says the high interest rate environment and the rise in home prices have impacted housing affordability4; that reaches every customer at once.

Services show a different kind of customer. Services revenue, $5,654 million in fiscal 20255, comes from installation and home maintenance programmes in which Home Depot provides or arranges professional installation6. The substantial majority of those services are completed within one week7, so even here nothing is contracted for long.

The figure that shows the base is still growing is the transaction count. It was 443.2 million in the second quarter of fiscal 2026, down 1.0%8; a return to growth would mean more customers are coming, not just the same ones spending more.

Moat trajectory: Holding steady

No customer above 10% for three years.

The number that tests this moat
Reported
Customer transactions, latest quarter
443.2M (Q2 fiscal 2026), down 1.0%

The breadth of the base; a return to growth would mean more customers, not just bigger baskets.

Source: Home Depot Q2 fiscal 2026 results release ↗
References
  1. ReportedNo sales to an individual customer accounted for more than 10% of revenue in any of the last three years, and the stores handled 1,601.5 million customer transactions in fiscal 2025 at an average ticket of $90.56.
    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 ↗
  2. ReportedNo sales to an individual customer accounted for more than 10% of revenue in any of the last three years, and the stores handled 1,601.5 million customer transactions in fiscal 2025 at an average ticket of $90.56.
    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 ↗
  3. ReportedProducts were $159,029 million of revenue in fiscal 2025 and services $5,654 million, sold to millions of households and contractors.
    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 ↗
  4. ReportedThe 10-K says the high interest rate environment and the rise in home prices have impacted housing affordability; that reaches every customer at once.
    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 ↗
  5. ReportedServices revenue, $5,654 million in fiscal 2025, comes from installation and home maintenance programmes in which Home Depot provides or arranges professional installation.
    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. ReportedServices revenue, $5,654 million in fiscal 2025, comes from installation and home maintenance programmes in which Home Depot provides or arranges professional installation.
    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 ↗
  7. ReportedThe substantial majority of those services are completed within one week, so even here nothing is contracted for long.
    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 ↗
  8. ReportedIt was 443.2 million in the second quarter of fiscal 2026, down 1.0%; a return to growth would mean more customers are coming, not just the same ones spending more.
    The Home Depot second-quarter fiscal 2026 results release, Form 8-K exhibit 99.1 - sales, comparable sales, transactions, ticket, earnings, reaffirmed guidance and the balance sheet. — Q2 fiscal 2026 · publ. 18 August 2026 · source ↗
Sources
Generated September 26, 2026