LOWES COMPANIES INC (LOW) Earnings History

LOWES COMPANIES INC - Q4 FY2025 EarningsMissed

Filed at: Feb 25, 2026, 8:44 AM EST|Read from source

EXECUTIVE SUMMARY

Lowe's reported solid fourth-quarter results driven by its Total Home strategy resonating with Pro and DIY customers, leading to increased total sales and comparable sales growth. Despite a pressured housing market, the company is focused on productivity initiatives and confident in its ability to gain market share.

POSITIVE HIGHLIGHTS

  • •

    Total sales increased to $20.6 billion, up from $18.6 billion in the prior-year quarter.

    positive
  • •

    Comparable sales increased 1.3%, driven by growth in Pro, online, and home services sales, as well as strong holiday performance.

    positive
  • •

    Diluted EPS of $1.78, with adjusted diluted EPS of $1.98, representing a 2.6% increase year-over-year.

    positive
  • •

    Company returned $2.6 billion to shareholders through dividends for the fiscal year.

    positive

CONCERNS & RISKS

  • •

    Operating income as a percentage of sales (operating margin) is expected to be 11.2% to 11.4% for FY2026, a decrease from the 11.77% reported for FY2025.

    attention
  • •

    The company recognized $149 million in pre-tax expenses associated with the acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG) in Q4 FY2025.

    attention
  • •

    Merchandise inventory - net was $17,300 million as of Jan 30, 2026, a slight decrease from $17,409 million in the prior year, but still a significant portion of assets.

    attention
  • •

    Full Year 2026 comparable sales are expected to be flat to up 2% compared to the prior year, indicating a slowdown from the 1.3% growth in Q4 FY2025.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$20.58B
+10.9%
Prior year: $18.55B
Annual (YTD)
$86.29B
N/A
Prior year: $83.67B
Net Income
Quarterly
$999.00M
-11.2%
Prior year: $1.13B
Annual (YTD)
$6.65B
N/A
Prior year: $6.96B
EPS (Diluted)
Quarterly
$1.78
-10.6%
Prior year: $1.99
Operating Income
Quarterly
$1.71B
N/A
EPS (Basic)
Quarterly
$1.78
-11.0%
Prior year: $2.00

MARGIN ANALYSIS

Gross Margin
Current Quarter
32.5%
Prior Year
32.9%
YoY Change
-40 bps
Operating Margin
Current Quarter
8.3%
Prior Year
9.9%
YoY Change
-157 bps
Net Margin
Current Quarter
4.8%
Prior Year
6.1%
YoY Change
-121 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

FY2026

Total sales
$92000000.0B—$94000000.0B
Mid-point: $93000000.0B
"increase of approximately 7% to 9% compared to prior year"
Comparable sales
$0.0M—$2.0M
Mid-point: $1.0M
"flat to up 2% as compared to prior year"
Operating margin
11.2%—11.4%
Mid-point: 11.3%
Adjusted operating margin
11.6%—11.8%
Mid-point: 11.7%
Diluted EPS
$11.75—$12.25
Mid-point: $12.00
Adjusted diluted EPS
$12.25—$12.75
Mid-point: $12.50
Capital expenditures
No specific guidance provided

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 FY2025
Transaction costs and intangible asset amortization related to the acquisitions of Artisan Design Group and Foundation Building Materials.
Pre-tax expenses
+$149M
$0.20 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

We delivered strong results this quarter, as our Total Home strategy is resonating with both our Pro and DIY customers, which was evident during a great holiday season.

— LOWES COMPANIES INC, Q4 FY2025 2025 Earnings Call

Given our outperformance this quarter, we awarded $125 million in discretionary bonuses to our frontline associates in recognition of their hard work and outstanding customer service.

— LOWES COMPANIES INC, Q4 FY2025 2025 Earnings Call

While the housing macro remains pressured, we are focused on directing what is within our control, which includes our ongoing productivity initiatives.

— LOWES COMPANIES INC, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Stores
1.8K
stores

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.