Home Depot (HD) risk factors, FY2026 10-K

Home Depot's FY2026 10-K, filed Mar 18, 2026, lists 24 risk factors in 3 groups. Against the prior year's 26: 1 new, 3 dropped, 18 substantially reworded.

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Risk factors listed
243 groups
New this year
1vs 26 last year
Dropped
3since the prior 10-K
Substantially reworded
18of those kept
Section length
11k wordsItem 1A

What the changes say

  • Home Depot faces heightened compliance and reputational risks regarding responsible sourcing of raw materials like timber and minerals.
  • Competition risks expanded to include reseller marketplaces and direct manufacturer sales.
  • Shrinkage from organized retail crime remains a significant operational challenge.

What changed since the prior 10-K

New

  • NewOPERATIONAL RISKS

    could result in financial losses and reputational harm. Even with adequate insurance and indemnification, our reputation as a provider of high-quality products, including both national brand names and our proprietary products, and services could suffer, damaging our reputation and impacting customer loyalty

    Suppliers may fail to comply with responsible sourcing standards and laws covering timber, minerals, and labor, risking our reputation and customer loyalty.

Dropped

  • DroppedSTRATEGIC RISKS

    Our industry is highly competitive, highly fragmented, and evolving. As a result, we face competition for customers for our products and services from a variety of retailers, suppliers, service providers, and distributors and manufacturers that sell products directly to their respective customer bases

  • DroppedOPERATIONAL RISKS

    impacted by capacity constraints, port congestion and delays, periodic labor disputes, strikes, security issues, weather-related events, and natural or man-made disasters

    Fierce industry competition across traditional, multichannel, and online retailers.

  • DroppedOPERATIONAL RISKS

    Our business is subject to seasonal influences, and uncharacteristic or significant weather conditions, climate change, natural disasters, as well as other catastrophic or uncharacteristic events, could impact our operations and financial results

Reworded

  • 100% rewrittenSTRATEGIC RISKS

    Strong competition could adversely affect prices and demand for our products and services and could decrease our market share

    Added reseller marketplaces and manufacturers selling directly to customers as competitive threats.

  • 72% rewrittenOPERATIONAL RISKS

    Failure to achieve and maintain a high level of product and service quality and safety and ensure compliance with responsible sourcing laws and standards could damage our reputation with customers, expose us to litigation or enforcement actions, and negatively impact our sales and results of operations

    Updated heading to explicitly mention responsible sourcing laws and standards.

  • 64% rewrittenOPERATIONAL RISKS

    Failure to maintain a safe and secure shopping and working environment may adversely impact sales, costs, the customer and associate experience, and our brand and reputation

    Removed mentions of associate morale and brand reputation from shrink and theft risks.

  • 58% rewrittenOPERATIONAL RISKS

    We are subject to payment-related risks that could increase our operating costs, expose us to fraud or theft, subject us to potential liability, and potentially disrupt our business

    Added potential for higher fraud losses and new compliance requirements when offering new payment options.

  • 56% rewrittenOPERATIONAL RISKS

    Disruptions in our supply chain and other factors affecting the availability and distribution of our merchandise could adversely impact our business, financial results, and reputation

    Minor phrasing adjustments regarding past and future logistics disruptions on inventory delivery.

  • 56% rewrittenSTRATEGIC RISKS

    We may not timely identify or effectively respond to customer needs, expectations or trends, which could adversely affect our relationship with our customers, the demand for our products and services, and our market share

    Expanded customer trends to include macroeconomic changes, geopolitical tensions, civil unrest, and weather events.

  • 50% rewrittenMARKET, LEGAL, FINANCIAL, REGULATORY, AND OTHER EXTERNAL RISKS

    Adverse conditions in or uncertainty regarding the housing and home improvement markets, economic conditions, political and social climate, public health issues, and other factors beyond our control could adversely affect demand for our products and services, our costs of doing business, and our financial performance

    Added a stray reference to Fiscal 2025 Form 10-K inside the risk text.

    Was: Uncertainty regarding the housing and home improvement markets, economic conditions, political and social climate, public health issues, and other factors beyond our control could adversely affect demand for our products and services, our costs of doing business, and our financial performance

  • 45% rewrittenMARKET, LEGAL, FINANCIAL, REGULATORY, AND OTHER EXTERNAL RISKS

    The inflation or deflation of commodity and other prices could affect our prices, demand for our products, our sales and our profit margins

    Generalized commodity price volatility language to include geopolitical tensions and military conflicts alongside specific European and Middle Eastern conflicts.

  • 42% rewrittenSTRATEGIC RISKS

    The execution of initiatives to deliver our interconnected experience could adversely impact our business operations or financial results, and these initiatives might not provide the anticipated benefits

    Was: The execution of initiatives to implement our interconnected retail strategy could adversely impact our business operations or financial results, and these initiatives might not provide the anticipated benefits

  • 36% rewrittenSTRATEGIC RISKS

    If we are unable to effectively manage and expand our strategic alliances and relationships with certain suppliers of both brand name and proprietary products, we may be unable to effectively execute our strategy to differentiate ourselves from our competitors

    Was: If we are unable to effectively manage and expand our alliances and relationships with certain suppliers of both brand name and proprietary products, we may be unable to effectively execute our strategy to differentiate ourselves from our competitors

  • 35% rewrittenOPERATIONAL RISKS

    Our success depends upon our ability to attract, develop and retain highly qualified associates to provide excellent customer service and to support our strategic initiatives while also controlling our labor costs

  • 34% rewrittenOPERATIONAL RISKS

    Disruptions in our customer-facing technology infrastructure could impair our interconnected experience strategy and give rise to negative customer experiences, damage our brand and reputation and adversely impact our sales

    Was: Disruptions in our customer-facing technology systems could impair our interconnected retail strategy and give rise to negative customer experiences

  • 30% rewrittenMARKET, LEGAL, FINANCIAL, REGULATORY, AND OTHER EXTERNAL RISKS

    If we cannot successfully manage the challenges presented by operating in international markets, we may not be successful in our international operations and our sales and profitability may be negatively impacted

  • 30% rewrittenOPERATIONAL RISKS

    A failure of one or more key elements of our technology infrastructure, including associated systems or processes, could adversely affect our business, financial results, and reputation

    Was: A failure of one or more key information technology systems or processes could adversely affect our business, financial results, and reputation

  • 30% rewrittenSTRATEGIC RISKS

    Our strategic transactions involve risks, which could have an adverse impact on our business, financial condition and results of operations, and we may not realize the anticipated benefits of these transactions

  • 24% rewrittenOPERATIONAL RISKS

    If our efforts to maintain the privacy and security of customer, associate, jobseeker, business partner, and Company information are not successful, we could incur substantial costs and reputational damage and could become subject to litigation and enforcement actions

    Was: If our efforts to maintain the privacy and security of customer, associate, job applicant, business partner, and Company information are not successful, we could incur substantial costs and reputational damage and could become subject to litigation and enforcement actions

  • 22% rewrittenMARKET, LEGAL, FINANCIAL, REGULATORY, AND OTHER EXTERNAL RISKS

    We may incur property, casualty or other losses not covered by our insurance

  • 22% rewrittenMARKET, LEGAL, FINANCIAL, REGULATORY, AND OTHER EXTERNAL RISKS

    Our costs of doing business could increase as a result of changes in, expanded enforcement of, or adoption of new federal, state, local or international laws, regulations and executive orders

All 24 risk factors

Headings as the filing states them, in filing order.

STRATEGIC RISKS

  1. 01Strong competition could adversely affect prices and demand for our products and services and could decrease our market share100% rewritten
  2. 02We may not timely identify or effectively respond to customer needs, expectations or trends, which could adversely affect our relationship with our customers, the demand for our products and services, and our market share56% rewritten
  3. 03The execution of initiatives to deliver our interconnected experience could adversely impact our business operations or financial results, and these initiatives might not provide the anticipated benefits42% rewritten
  4. 04If we are unable to effectively manage and expand our strategic alliances and relationships with certain suppliers of both brand name and proprietary products, we may be unable to effectively execute our strategy to differentiate ourselves from our competitors36% rewritten
  5. 05Our strategic transactions involve risks, which could have an adverse impact on our business, financial condition and results of operations, and we may not realize the anticipated benefits of these transactions30% rewritten

OPERATIONAL RISKS

  1. 06A failure of one or more key elements of our technology infrastructure, including associated systems or processes, could adversely affect our business, financial results, and reputation30% rewritten
  2. 07Disruptions in our customer-facing technology infrastructure could impair our interconnected experience strategy and give rise to negative customer experiences, damage our brand and reputation and adversely impact our sales34% rewritten
  3. 08Disruptions in our supply chain and other factors affecting the availability and distribution of our merchandise could adversely impact our business, financial results, and reputation56% rewritten
  4. 09Failure to maintain a safe and secure shopping and working environment may adversely impact sales, costs, the customer and associate experience, and our brand and reputation64% rewritten
  5. 10If our efforts to maintain the privacy and security of customer, associate, jobseeker, business partner, and Company information are not successful, we could incur substantial costs and reputational damage and could become subject to litigation and enforcement actions24% rewritten
  6. 11Our success depends upon our ability to attract, develop and retain highly qualified associates to provide excellent customer service and to support our strategic initiatives while also controlling our labor costs35% rewritten
  7. 12We are subject to payment-related risks that could increase our operating costs, expose us to fraud or theft, subject us to potential liability, and potentially disrupt our business58% rewritten
  8. 13If we fail to identify and develop relationships with a sufficient number of qualified suppliers, or if our suppliers experience financial difficulties or other challenges, our ability to timely and efficiently access products that meet our high standards for quality could be adversely affected
  9. 14Failure to achieve and maintain a high level of product and service quality and safety and ensure compliance with responsible sourcing laws and standards could damage our reputation with customers, expose us to litigation or enforcement actions, and negatively impact our sales and results of operations72% rewritten
  10. 15could result in financial losses and reputational harm. Even with adequate insurance and indemnification, our reputation as a provider of high-quality products, including both national brand names and our proprietary products, and services could suffer, damaging our reputation and impacting customer loyaltyNew
  11. 16Our proprietary products subject us to certain increased risks, including regulatory, product liability, intellectual property, supplier relations, and reputational risks
  12. 17If we are unable to effectively manage our installation services business, we could lose sales and be subject to fines, lawsuits, reputational damage or the loss of our general contractor licenses

MARKET, LEGAL, FINANCIAL, REGULATORY, AND OTHER EXTERNAL RISKS

  1. 18Adverse conditions in or uncertainty regarding the housing and home improvement markets, economic conditions, political and social climate, public health issues, and other factors beyond our control could adversely affect demand for our products and services, our costs of doing business, and our financial performance50% rewritten
  2. 19Our costs of doing business could increase as a result of changes in, expanded enforcement of, or adoption of new federal, state, local or international laws, regulations and executive orders22% rewritten
  3. 20If we cannot successfully manage the challenges presented by operating in international markets, we may not be successful in our international operations and our sales and profitability may be negatively impacted30% rewritten
  4. 21The inflation or deflation of commodity and other prices could affect our prices, demand for our products, our sales and our profit margins45% rewritten
  5. 22We may incur property, casualty or other losses not covered by our insurance22% rewritten
  6. 23Changes in accounting standards and subjective assumptions, estimates and judgments by management related to complex accounting matters could significantly affect our financial results or financial condition
  7. 24We are involved from time to time in a number of legal, regulatory and governmental enforcement proceedings. While we cannot predict the outcomes of those proceedings and other contingencies with certainty, certain of them could adversely affect our operations and reputation and/or increase our costs

Other Home Depot 10-Ks

  • FY2025 10-K risk factors
    26 risks

    Home Depot faces intense retail competition and execution risks in its interconnected retail and supply chain strategies. Macroeconomic dependence on the housing and home improvement markets heavily influences financial performance. Operational vulnerabilities include organized retail crime shrink and the integration of strategic acquisitions like SRS.

    Filed Mar 21, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.