Is Home Depot (HD) Halal?
Screener: Yes — Home Depot passes Shariah screening as of October 2026. Its business is halal, its debt is 18.63% of market cap, and its interest income is 0.07% of revenue. Below: the full screening math, the question every investor asks, and the caveats that could change the answer.
Screen 1: Business activity
The Home Depot, Inc. is a home improvement retailer — tools, building materials, appliances, and related services sold through stores and online. Net sales were $89.6B in the first half of FY2026. None of its core businesses are in prohibited industries (alcohol, gambling, conventional finance, weapons, adult entertainment, non-halal food).
The nuance everyone asks about: Home Depot credit cards and financing. Its consumer credit cards are issued by a bank — the bank is the lender, not Home Depot. Its revenue is merchandise sales, and screeners classify it as a retailer, not a financial company.
Screen 2: Financial ratios
AAOIFI-style screening applies three ratio tests:
| Ratio | Home Depot (Oct 2026) | Ceiling | Result |
|---|---|---|---|
| Total debt ÷ market cap | 18.63% ($52.9B (short-term debt $4,248M + current installments $4,697M + long-term $43,951M) on $283.9B market cap) | < 33% | PASS |
| Cash + short-term investments ÷ market cap | 0.73% ($2.1B cash and cash equivalents on $283.9B market cap) | < 33% | PASS |
| Non-compliant income ÷ total revenue | 0.07% (≤ $66M "interest income and other, net" on $89,626M net sales (H1 FY2026) — conservative upper bound) | < 5% | PASS |
Figures: Q2 FY2026 10-Q (filed August 25, 2026) for revenue, debt, and cash (six months ended August 2, 2026); market data September 30, 2026 close ($283.9B market cap at $284.49/share on 998M outstanding as of August 2, 2026).
Screen 3: Purification
Home Depot pays a quarterly dividend. With non-compliant income at or below 0.07% of sales, the purification amount on that dividend is negligible — but if you follow a strict methodology, run any dividends through our purification calculator.
What could change the screener
- Debt creep. At 18.63%, Home Depot has the highest debt ratio of this batch and the least headroom — if it funds more buybacks or acquisitions with debt, the 33% ceiling is worth re-checking.
- A business-mix shift into lending. If Home Depot ever became the lender itself (rather than partnering with a bank) at meaningful scale, the business-activity screen would need re-examination.
- Rising interest income. Currently at or below 0.07%; a large and growing cash pile earning interest would show up in the 5% income screen first.
We re-screen on a quarterly cadence — the screener above reflects the latest SEC filing and September 30, 2026 market data.
How Canadians buy it
Home Depot trades only on the NYSE as HD — there is no TSX listing, so you buy in USD. To convert cheaply, use Norbert's gambit on Questrade rather than paying a broker's conversion spread. HD is available through Questrade and Wealthsimple's self-directed accounts, and it can be held in a TFSA, RRSP, or FHSA — all wrappers are neutral to Shariah compliance. See our Questrade vs Wealthsimple comparison for the practical differences.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).
FAQ
Is Home Depot halal to invest in?
As of October 2026: yes, it passes Shariah screening — a halal home-improvement retail business, 18.63% debt ratio, at most 0.07% interest income. This is a screening result, not a religious ruling.
Home Depot offers credit cards and financing — isn't that lending?
Home Depot's consumer credit cards are issued by a bank; the bank is the lender, not Home Depot. Its revenue is merchandise sales ($89.6B in H1 FY2026), and screeners classify it as a retailer, not a financial company.
Do I need to purify Home Depot's dividend?
Home Depot pays a quarterly dividend. With non-compliant income at or below 0.07% of sales, the purification amount on it is negligible — but if you follow a strict methodology, you can run any dividends through a purification calculator.
Home Depot carries about $53 billion in debt — doesn't that fail the debt screen?
The screen compares debt to market value, not to zero. Home Depot's ~$52.9B in total debt is about 18.63% of its ~$283.9B market cap — under the 33% ceiling, though it is the highest debt ratio of this batch and worth watching. The absolute number sounds large; the ratio is what the methodology measures.