Where Could Home Depot’s Next Growth Come From?

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Over the twelve months to November 6, 2026, Home Depot (HD) stock lost 5.5%, trailing the 9.8% return of the S&P 500. Finding growth is hard for a retailer whose main market is stuck. On its August 18 call, management said it saw no sign yet of housing turning up. Yet one business Home Depot bought is pulling ahead. So which business is it, and what has to go right for it to add to growth?

SRS Is Growing Faster Than Home Depot Overall

That segment is SRS, the supply business Home Depot acquired. Management said SRS posted comparable sales above the company average in the quarter ended August 2, 2026, a period when whole-company comparable sales rose 1.7%. Operations in Canada and Mexico also beat that 1.7% figure, management said. SRS posted positive comps across all its business lines, and management said the unit appears to be taking a lot of share.

One sign of this progress is that SRS has started selling through Home Depot’s own stores. Over the twelve months to the August 18 call, 90% of Home Depot locations closed a sale through SRS. Management said sales through QuoteCenter facilitated by SRS are growing rapidly, and the company has started to roll out the SRS purchase card for in-store use. These gains matched a wider pattern during the quarter, when Home Depot’s Pro customers posted positive comps and performed better than its DIY shoppers.

How Could SRS Fit Into Home Depot’s Sales Plan?

For the year, management expects SRS to deliver organic sales growth in the mid single digits, and Home Depot plans to open 40 to 50 new SRS branches.

Home Depot’s revenue was $169 billion over the twelve months ended August 2, 2026, marking a 2.5% increase from a year earlier. Management expects total sales for the year to grow about 2.5% to 4.5%, while comparable sales are expected to range from flat to 2%. The company credits the difference to new stores, new branches, small acquisitions, and its September 2025 purchase of GMS.

Home Depot trades at 24.0 times earnings, against 21.8 for the S&P 500, so the stock price appears to assume some of that growth already. Over the month to November 6, 2026, the shares rose 16.2%, while the S&P 500 fell 4.9%. Even so, the shares closed 10.3% below their February 13, 2026 high.

What Must Go Right For Home Depot’s SRS Bet?

SRS has to keep winning share while the housing market stays frozen. During the August 18 call, an analyst asked whether the quarter’s gains came from market share or a home improvement market picking up. Management answered that Home Depot’s teams “took share in a difficult environment.”

The market itself has not helped. Management said housing turnover has sat at low levels for four years, and larger discretionary projects remain under pressure. The company also said the start to the third quarter was consistent with the demand it saw in the second.

When Home Depot reports in November 2026, SRS’s progress toward its full-year organic growth guide is the thing to watch.

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