January 12, 2026
Finance

Home Depot Amplifies AI Integration with Expanded Google Cloud Collaboration

Strategic partnership enhances customer experience through advanced agentic AI tools

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Summary

Home Depot has announced a significant expansion of its collaboration with Google Cloud, introducing agentic AI technologies aimed at delivering expert, real-time guidance to both DIY homeowners and professional customers. Utilizing Google Cloud's Gemini models and Gemini Enterprise for Customer Experience, the retailer is developing a personalized, accessible AI-driven shopping experience. The company plans to further embed these capabilities into upcoming agentic shopping interfaces like Google Search's AI Mode and the Gemini app.

Key Points

Home Depot extends its partnership with Google Cloud to implement advanced agentic AI tools tailored for homeowners and professional customers.
Integration of Google Cloud’s Gemini models and Gemini Enterprise for Customer Experience enhances a personalized AI-driven retail environment.
Upcoming launches planned to integrate AI functionalities into Google Search’s AI Mode and the Gemini app, expanding agentic shopping experiences.
Home Depot maintains its fiscal 2025 guidance of 3% sales growth but projects a 5% decline in adjusted diluted EPS, with cautious outlook for fiscal 2026’s home improvement market.

Home Depot, Inc. (NYSE: HD) revealed on Sunday an extension of its strategic alliance with Google Cloud, a division of Alphabet Inc. (NASDAQ: GOOG). This expanded partnership centers on the deployment of advanced agentic artificial intelligence (AI) tools designed to provide both homeowners and professionals, such as contractors, renovators, and remodelers, with immediate and expert assistance.

The initiative incorporates Google Cloud’s Gemini models and the Gemini Enterprise solution tailored for Customer Experience (CX), enabling Home Depot to craft a seamless, personalized AI-first experience accessible across various platforms and environments.

Moving forward, Home Depot intends to broaden the integration of these AI functionalities into novel agentic shopping experiences. These will be accessible through Google Search’s AI Mode and the Gemini application, scheduled for release in the forthcoming months.

By leveraging Google Cloud's AI infrastructure, Home Depot is embedding its home improvement expertise directly into customer interactions. Enhancements include improvements to its Magic Apron assistant, AI-driven tools for building product lists specifically for professional users, and the introduction of new support features aimed at store personnel and customers alike.

Jordan Broggi, Executive Vice President of Customer Experience and President of Online Sales at Home Depot, emphasized the significance of this technological investment. Broggi stated, “Enhancing our offerings with Google Cloud’s AI solutions allows us to bring the knowledge conventionally associated with the ‘Orange Apron’ experts directly to the customers’ pockets. This results in an AI experience that is highly personalized and contextually relevant, no matter if the customer is at home, on a jobsite, or navigating our store aisles.”

Jose Gomes, Vice President of Retail and Consumer Packaged Goods at Google Cloud, noted the innovative use of AI in transforming retail commerce. Gomes explained, “Home Depot exemplifies leadership in the evolving agentic commerce space by harnessing AI capabilities to generate tangible value. Integrating Google Cloud’s AI empowers Home Depot to deliver customer interactions informed by some of the most sophisticated intelligence available, whether the engagement occurs with a professional in the field or a shopper in-store.”

In terms of financial outlook, Home Depot reaffirmed its fiscal 2025 targets in December. The company anticipates total sales growth near 3%, accompanied by a slightly positive trend in comparable sales on a comparable 52-week basis. However, earnings projections signal an expected adjusted diluted earnings per share (EPS) decline of approximately 5%, down from $15.24.

Looking ahead to fiscal 2026, Home Depot outlined a preliminary outlook anticipating a home improvement market that may fluctuate between a decrease of 1% to an increase of 1%.

From a market perspective, Home Depot’s shares were trading slightly lower in premarket activity on Monday, registering a 0.25% decrease to $373.71, according to Benzinga Pro data.

Risks
  • The anticipated 5% decline in adjusted diluted EPS for fiscal 2025 indicates potential profitability pressures despite sales growth.
  • Uncertainty in the home improvement market's performance for fiscal 2026, with projection ranging from a 1% decline to a 1% increase.
  • The success of the new AI implementations relies on customer adoption and effective integration, which could present operational challenges.
  • Stock price volatility, as shown by a slight premarket decline, may reflect market sensitivity to earnings projections and strategic initiatives.
Disclosure
Education only / not financial advice
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