LOWE'S REPORTS THIRD QUARTER 2025 SALES AND EARNINGS RESULTS

Rhea-AI Summary

Lowe's (NYSE: LOW) reported third quarter 2025 net earnings of $1.6 billion and diluted EPS of $2.88 for the quarter ended Oct. 31, 2025, versus diluted EPS of $2.99 a year earlier.

Third quarter adjusted diluted EPS (ex-acquisition costs) rose 5.9% to $3.06. Total sales were $20.8 billion (+$0.6B YoY) with comparable sales +0.4%, driven by online sales +11.4%, double-digit home services growth and continued Pro growth. The company closed the Foundation Building Materials (FBM) acquisition and invested $8.8 billion for that deal during the quarter.

Updated full-year 2025 outlook: $86.0B sales, flat comps, adjusted operating margin 12.1%, adjusted diluted EPS ~$12.25, net interest expense ~$1.4B, capex up to $2.5B.

Positive

• Adjusted diluted EPS +5.9% to $3.06
• Total sales of $20.8 billion in Q3 2025
• Comparable sales increased 0.4% in Q3 2025
• Online sales growth +11.4% in Q3 2025
• Closed FBM acquisition; $8.8 billion invested

Negative

• Diluted EPS declined to $2.88 from $2.99 year‑ago
• Adjusted operating margin lowered to 12.1% from 12.2–12.3%
• Net interest expense guidance raised to ~$1.4 billion from ~$1.3 billion
• Cash and cash equivalents fell to $621 million from $3,271 million

Insights

Retail Financial Analyst

Lowe's delivered modest quarterly growth with slight EPS decline on GAAP but improved adjusted EPS and a broadened full‑year sales outlook.

The quarter shows a clear commercial mechanism: total sales rose to $20.8 billion and comparable sales edged up 0.4%, supported by 11.4% online growth, stronger Pro and home‑services demand, and the recent acquisition activity (FBM and ADG) that added scale and intangible assets to the balance sheet.

Key dependencies and risks include acquisition costs and higher leverage: the quarter included $129 million of pre‑tax transaction expenses and the balance sheet reflects increased long‑term debt and intangible assets after the FBM purchase; margin guidance tightened to 12.1% and net interest expense rose to about $1.4 billion, highlighting sensitivity to financing costs and integration execution.

Concrete items to watch are: adjusted diluted EPS cadence toward the updated full‑year target of $12.25, comparable‑sales trajectory versus flat guidance, integration progress and synergies from FBM/ADG, and quarterly interest expense trends over the next 12 months. Expect meaningful datapoints at the next quarterly report and during integration updates within the upcoming fiscal year.

— Diluted EPS of $2.88; Adjusted Diluted EPS¹ of $3.06 —
— Comparable Sales increased 0.4% —
— Updates Full Year 2025 Outlook —

MOORESVILLE, N.C., Nov. 19, 2025 /PRNewswire/ -- Lowe's Companies, Inc. (NYSE: LOW) today reported net earnings of $1.6 billion and diluted earnings per share (EPS) of $2.88 for the quarter ended Oct. 31, 2025, compared to diluted EPS of $2.99 in the third quarter of 2024. During the third quarter, the company recognized $129 million in pre-tax expenses associated with the acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG). Excluding these expenses, third quarter 2025 adjusted diluted EPS¹ increased 5.9% to $3.06 compared to the prior-year adjusted diluted EPS¹.

Total sales for the quarter were $20.8 billion, compared to $20.2 billion in the prior-year quarter. Comparable sales for the quarter increased 0.4%, driven by 11.4% online sales growth, double-digit growth in home services and continued growth in Pro sales.

"The company delivered another quarter of positive comp sales, and we're pleased to start November with positive comps as well, despite headwinds related to hurricane activity in the prior year.  With the closing of the FBM acquisition last month, we look forward to enhancing our offering to Pro customers and creating more sustainable, long-term sales and profit expansion for the company," said Marvin R. Ellison, Lowe's chairman, president and CEO. "I would like to thank our associates for their hard work and dedication to the business."

As of Oct. 31, 2025, Lowe's operated 1,756 stores, representing 195.8 million square feet of retail selling space.

Capital Allocation

The company remains committed to a disciplined capital allocation strategy focused on driving long-term shareholder value. During the quarter, the company invested $8.8 billion for the acquisition of FBM and paid $673 million in dividends.

Lowe's Business Outlook

The company is updating its outlook for the operating results of full year 2025 to reflect the ongoing uncertainty in the macroeconomic environment. The updated outlook also includes expectations for FBM. 

Adjusted operating income, adjusted operating margin and adjusted diluted EPS are non-GAAP financial measures that exclude the transaction costs, purchase accounting adjustments and intangible asset amortization related to the acquisition of FBM and ADG. The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items (which may be significant) without unreasonable effort.

Full Year 2025 Outlook

• Total sales of $86.0 billion (previously $84.5 to $85.5 billion)
• Comparable sales expected to be flat as compared to prior year (previously flat to up +1%)
• Adjusted operating income as a percentage of sales (adjusted operating margin) of 12.1%
  (previously 12.2% to 12.3%)
• Net interest expense of approximately $1.4 billion (previously $1.3 billion)
• Effective income tax rate of approximately 24.0% (previously 24.5%)
• Adjusted diluted earnings per share of approximately $12.25 (previously $12.20 to $12.45)
• Capital expenditures of up to $2.5 billion

A conference call to discuss third quarter 2025 operating results is scheduled for today, Wednesday, Nov. 19, at 9 a.m. ET. The conference call will be available by webcast and can be accessed by visiting Lowe's website at ir.lowes.com and clicking on Lowe's Third Quarter 2025 Earnings Conference Call Webcast. Supplemental slides will be available prior to the start of the conference call. A replay of the call will be archived at ir.lowes.com.

Lowe's Companies, Inc.

Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE® 100 home improvement company serving approximately 16 million customer transactions a week, with total fiscal year 2024 sales of more than $83 billion. Lowe's employs approximately 300,000 associates and operates over 1,700 home improvement stores, 530 branches and 130 distribution centers. Based in Mooresville, N.C., Lowe's supports the communities it serves through programs focused on creating safe, affordable housing, improving community spaces, helping to develop the next generation of skilled trade experts and providing disaster relief to communities in need. For more information, visit Lowes.com.

Disclosure Regarding Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Statements including words such as "believe", "expect", "anticipate", "plan", "desire", "project", "estimate", "intend", "will", "should", "could", "would", "may", "strategy", "potential", "opportunity", "outlook", "scenario", "guidance", and similar expressions are forward-looking statements.  Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives (including objectives related to environmental and social matters), business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services including customer acceptance of new offerings and initiatives, macroeconomic conditions and consumer spending, share repurchases, and Lowe's strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results.  Such statements involve risks and uncertainties, and we can give no assurance that they will prove to be correct.  Actual results may differ materially from those expressed or implied in such statements.

A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, changes in general economic conditions, such as volatility and/or lack of liquidity from time to time in U.S. and world financial markets and the consequent reduced availability and/or higher cost of borrowing to Lowe's and its customers, slower rates of growth in real disposable personal income that could affect the rate of growth in consumer spending, inflation and its impacts on discretionary spending and on our costs, shortages, and other disruptions in the labor supply, interest rate and currency fluctuations, home price appreciation or decreasing housing turnover, age of housing stock, the availability of consumer credit and of mortgage financing, trade policy changes or additional tariffs, outbreaks of pandemics, fluctuations in fuel and energy costs, inflation or deflation of commodity prices, natural disasters, geopolitical or armed conflicts, acts of both domestic and international terrorism, and other factors that can negatively affect our customers.

Investors and others should carefully consider the foregoing factors and other uncertainties, risks and potential events including, but not limited to, those described in "Item 1A - Risk Factors" in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A in our quarterly reports on Form 10-Q or other subsequent filings with the SEC. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law.   

1 Adjusted diluted earnings per share is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures Reconciliation" section of this release for additional information, as well as reconciliations between the company's GAAP and non-GAAP financial results.

 

LOW-IR

Contacts:	Shareholder/Analyst Inquiries:		Media Inquiries:
	Kate Pearlman		Steve Salazar
	704-775-3856		steve.j.salazar@lowes.com
	kate.pearlman@lowes.com

 

Lowe's Companies, Inc. Consolidated Statements of Current Earnings and Accumulated Deficit (Unaudited) In Millions, Except Per Share and Percentage Data
	Three Months Ended								Nine Months Ended
	October 31, 2025				November 1, 2024				October 31, 2025				November 1, 2024
Current Earnings	Amount		% Sales		Amount		% Sales		Amount		% Sales		Amount		% Sales
Net sales	$  20,813		100.00		$  20,170		100.00		$  65,701		100.00		$  65,120		100.00
Cost of sales	13,697		65.81		13,374		66.31		43,497		66.20		43,340		66.55
Gross margin	7,116		34.19		6,796		33.69		22,204		33.80		21,780		33.45
Expenses:
Selling, general and administrative	4,160		19.99		3,827		18.97		12,381		18.85		11,860		18.22
Depreciation and amortization	475		2.28		433		2.15		1,378		2.10		1,284		1.97
Operating income	2,481		11.92		2,536		12.57		8,445		12.85		8,636		13.26
Interest – net	352		1.69		317		1.57		1,002		1.52		985		1.51
Pre-tax earnings	2,129		10.23		2,219		11.00		7,443		11.33		7,651		11.75
Income tax provision	513		2.46		524		2.59		1,789		2.72		1,818		2.79
Net earnings	$    1,616		7.77		$    1,695		8.41		$    5,654		8.61		$    5,833		8.96
Weighted average common shares outstanding – basic	559				565				559				568
Basic earnings per common share (1)	$      2.88				$      2.99				$    10.09				$    10.24
Weighted average common shares outstanding – diluted	560				566				560				569
Diluted earnings per common share (1)	$      2.88				$      2.99				$    10.07				$    10.22
Cash dividends per share	$      1.20				$      1.15				$      3.55				$      3.40
Accumulated Deficit
Balance at beginning of period	$  (12,108)				$  (14,342)				$  (14,799)				$  (15,637)
Net earnings	1,616				1,695				5,654				5,833
Cash dividends declared	(673)				(650)				(1,991)				(1,933)
Share repurchases	—				(696)				(29)				(2,256)
Balance at end of period	$  (11,165)				$  (13,993)				$  (11,165)				$  (13,993)

(1)

Under the two-class method, earnings per share is calculated using net earnings allocable to common shares, which is derived by reducing net earnings by the earnings allocable to participating securities.  Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were 1,612 million for the three months ended October 31, 2025, and 1,691 million for the three months ended November 1, 2024.  Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were 5,639 million for the nine months ended October 31, 2025, and 5,818 million for the nine months ended November 1, 2024.

 

Lowe's Companies, Inc. Consolidated Statements of Comprehensive Income (Unaudited) In Millions, Except Percentage Data
	Three Months Ended								Nine Months Ended
	October 31, 2025				November 1, 2024				October 31, 2025				November 1, 2024
	Amount		% Sales		Amount		% Sales		Amount		% Sales		Amount		% Sales
Net earnings	$    1,616		7.77		$    1,695		8.41		$    5,654		8.61		$    5,833		8.96
Cash flow hedges – net of tax	(7)		(0.04)		(3)		(0.02)		(14)		(0.02)		(9)		(0.02)
Other	1		—		—		—		1		—		1		—
Other comprehensive loss	(6)		(0.04)		(3)		(0.02)		(13)		(0.02)		(8)		(0.02)
Comprehensive income	$    1,610		7.73		$    1,692		8.39		$    5,641		8.59		$    5,825		8.94

 

Lowe's Companies, Inc. Consolidated Balance Sheets (Unaudited) In Millions, Except Par Value Data
		October 31, 2025		November 1, 2024
Assets
Current assets:
Cash and cash equivalents		$                           621		$                        3,271
Short-term investments		412		335
Receivables - net		1,216		108
Merchandise inventory - net		17,183		17,566
Other current assets		788		697
Total current assets		20,220		21,977
Property, less accumulated depreciation		18,309		17,586
Operating lease right-of-use assets		4,345		3,771
Long-term investments		280		312
Deferred income taxes - net		—		261
Intangible assets - net		5,994		281
Goodwill		3,982		311
Other assets		323		244
Total assets		$                      53,453		$                      44,743
Liabilities and shareholders' deficit
Current liabilities:
Current maturities of long-term debt		$                        2,437		$                        2,576
Current operating lease liabilities		691		497
Accounts payable		10,236		10,602
Accrued compensation and employee benefits		1,023		828
Deferred revenue		1,537		1,359
Other current liabilities		3,527		3,585
Total current liabilities		19,451		19,447
Long-term debt, excluding current maturities		37,498		32,906
Noncurrent operating lease liabilities		4,070		3,741
Deferred income taxes - net		808		—
Deferred revenue - Lowe's protection plans		1,273		1,260
Other liabilities		735		808
Total liabilities		63,835		58,162
Shareholders' deficit:
Preferred stock, $5 par value: Authorized - 5.0 million shares; Issued and outstanding - none		—		—
Common stock, $0.50 par value: Authorized - 5.6 billion shares; Issued and outstanding - 561 million and 565 million, respectively		280		282
Capital in excess of par value		228		—
Accumulated deficit		(11,165)		(13,993)
Accumulated other comprehensive income		275		292
Total shareholders' deficit		(10,382)		(13,419)
Total liabilities and shareholders' deficit		$                      53,453		$                      44,743

 

Lowe's Companies, Inc. Consolidated Statements of Cash Flows (Unaudited) In Millions
	Nine Months Ended
	October 31, 2025		November 1, 2024
Cash flows from operating activities:
Net earnings	$                        5,654		$                        5,833
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	1,557		1,461
Noncash lease expense	405		392
Deferred income taxes	24		(10)
Loss on property and other assets – net	45		11
Gain on sale of business	—		(97)
Share-based payment expense	177		164
Changes in operating assets and liabilities:
Merchandise inventory – net	816		(672)
Other operating assets	26		114
Accounts payable	552		1,944
Other operating liabilities	(959)		(426)
Net cash provided by operating activities	8,297		8,714
Cash flows from investing activities:
Purchases of investments	(1,290)		(999)
Proceeds from sale/maturity of investments	1,252		918
Capital expenditures	(1,610)		(1,379)
Proceeds from sale of property and other long-term assets	25		54
Proceeds from sale of business	—		97
Acquisitions of businesses - net	(10,055)		—
Other – net	(9)		(11)
Net cash used in investing activities	(11,687)		(1,320)
Cash flows from financing activities:
Net proceeds from issuance of debt	6,974		—
Repayment of debt	(2,568)		(522)
Proceeds from issuance of common stock under share-based payment plans	82		95
Cash dividend payments	(1,963)		(1,916)
Repurchases of common stock	(211)		(2,681)
Other – net	(64)		(20)
Net cash provided by/(used in) financing activities	2,250		(5,044)
Net (decrease)/increase in cash and cash equivalents	(1,140)		2,350
Cash and cash equivalents, beginning of period	1,761		921
Cash and cash equivalents, end of period	$                           621		$                        3,271

 

Lowe's Companies, Inc.
Non-GAAP Financial Measure Reconciliation (Unaudited)

To provide additional transparency, the Company has presented the non-GAAP financial measure of adjusted diluted earnings per share for the three months ended October 31, 2025 and November 1, 2024.  This measure excludes the impact of certain items, further described below, not contemplated in Lowe's Business Outlook to assist analysts and investors in understanding operational performance for the third quarter of fiscal 2025.

Fiscal 2025 Impacts
During fiscal 2025, the Company recognized financial impacts from the following:

• In the third quarter of fiscal 2025, the Company recognized pre-tax expenses of $129 million consisting of transaction costs and intangible asset amortization related to the acquisition of Artisan Design Group and Foundation Building Materials (Acquisition of businesses).

Fiscal 2024 Impacts:
During fiscal 2024, the Company recognized financial impacts from the following:

• In the third quarter of fiscal 2024, the Company recognized pre-tax income of $54 million consisting of a realized gain on the contingent consideration associated with the fiscal 2022 sale of the Canadian retail business (Canadian retail business transaction).

Adjusted diluted earnings per share should not be considered an alternative to, or more meaningful indicator of, the Company's diluted earnings per share as prepared in accordance with GAAP.  The Company's methods of determining non-GAAP financial measures may differ from the method used by other companies and may not be comparable.

A reconciliation between the Company's GAAP and non-GAAP financial results is shown below and available on the Company's website at ir.lowes.com.

	Three Months Ended
	October 31, 2025				November 1, 2024
Adjusted Diluted Earnings Per Share	Pre-Tax Earnings	Tax 1	Net Earnings		Pre-Tax Earnings	Tax 1	Net Earnings
Diluted Earnings Per Share, As Reported			$          2.88				$          2.99
Acquisition of businesses	0.23	(0.05)	0.18		—	—	—
Canadian retail business transaction	—	—	—		(0.10)	—	(0.10)
Adjusted Diluted Earnings Per Share			$          3.06				$          2.89

1   Represents the corresponding tax benefit or expense specifically related to the items excluded from adjusted diluted earnings per share.

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SOURCE Lowe's Companies, Inc.

FAQ

What were Lowe's (LOW) Q3 2025 earnings per share and net income?

Lowe's reported Q3 2025 diluted EPS of $2.88 and net earnings of $1.6 billion for the quarter ended Oct. 31, 2025.

How did Lowe's comparable sales perform in Q3 2025 and what drove the change?

Comparable sales were +0.4% in Q3 2025, driven by online sales +11.4%, double‑digit home services growth and Pro sales gains.

What is Lowe's updated full‑year 2025 outlook for sales and adjusted EPS (LOW)?

Lowe's updated full‑year 2025 outlook calls for $86.0 billion in sales and adjusted diluted EPS of approximately $12.25.

How much did Lowe's pay for the FBM acquisition and how was it recorded?

Lowe's invested $8.8 billion for the Foundation Building Materials acquisition, with related transaction costs excluded from adjusted measures.

Did Lowe's change its margin or interest expense guidance in the Q3 2025 release?

Yes; adjusted operating margin was revised to 12.1% (previously 12.2–12.3%) and net interest expense was raised to about $1.4 billion.

Where can investors listen to Lowe's Q3 2025 earnings call and find supplemental slides?

The Q3 2025 earnings conference call is available by webcast at ir.lowes.com, with supplemental slides posted prior to the call.