Home Depot (NYSE:HD) reported third-quarter adjusted earnings below analyst expectations on Tuesday, pushing the stock down 3% intra-day despite revenue coming in slightly ahead of forecasts.

Adjusted EPS for the period was $3.74, falling short of the consensus estimate of $3.84. Revenue rose 2.8% year over year to $41.4 billion, just above expectations of $41.18 billion. The figures included approximately $900 million in revenue from the recent acquisition of GMS Inc., representing around eight weeks of consolidation.

Comparable sales increased only 0.2%, while U.S. comparable sales were up 0.1%, reflecting continued softness in the housing market and consumer spending patterns.

Home Depot updated its fiscal 2025 outlook, now expecting approximately 3% total sales growth and “slightly positive” comparable sales for the comparable 52-week period. Adjusted diluted earnings per share are projected to decline roughly 5% from fiscal 2024's figure of $15.24.