Lowe’s Companies (LOW) LOW Q4 Financial Results Summary
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Lowe’s Companies, Inc. (LOW) Q3 2025 Financial Results Summary
Release Date: November 19, 2025
Lowe’s Companies, Inc. (NYSE: LOW) announced its financial results for the third quarter of 2025, ending October 31. The company reported several key metrics that illustrated both challenges and successes compared to the same quarter a year ago.
Financial Highlights:
- Net Earnings:
-
Reported at $1.6 billion, a decrease of 4.7% from $1.7 billion in Q3 2024.
-
Diluted Earnings Per Share (EPS):
- Reported at $2.88, down from $2.99 in Q3 2024, indicating a drop of 3.7%.
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Adjusted Diluted EPS was $3.06, reflecting a year-over-year increase of 5.9% from $2.89.
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Total Sales:
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Recorded sales increased to $20.8 billion, up 3.2% from $20.2 billion in the previous year.
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Comparable Sales:
- Increased by 0.4%, driven by:
- 11.4% growth in online sales.
- Double-digit growth in home services.
- Continued growth in Pro sales.
Expenses and Margins:
- Cost of Sales:
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Totaled $13.697 billion, slightly up from $13.374 billion year-over-year.
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Gross Margin:
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Increased to 34.19%, compared to 33.69% in Q3 2024.
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Operating Income:
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Reported at $2.481 billion, down from $2.536 billion, showing a 3.1% decrease.
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Pre-tax Earnings:
- Recorded at $2.129 billion, a decline of 4.1% from $2.219 billion the previous year.
Tax and Shares:
- Income Tax Provision:
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Declined to $513 million, down from $524 million a year ago.
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Shares Outstanding:
- Basic shares outstanding decreased to 559 million from 565 million last year.
Capital Allocation:
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The company invested $8.8 billion for the acquisition of Foundation Building Materials (FBM) and $673 million in dividends during the quarter.
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Lowe’s declared a quarterly dividend of $1.20 per share, an increase from $1.15 per share in the same quarter last year.
Business Outlook:
- The company adjusted its full-year 2025 outlook, setting key expectations as follows:
- Total Sales projected at $86.0 billion, an increase from the earlier estimate of $84.5 to $85.5 billion.
- Comparable Sales expected to be flat, revised from a previous projected increase of 0% to +1%.
- Adjusted Operating Income Margin now anticipated at 12.1%, down slightly from 12.2% to 12.3%.
- Net Interest Expense revised to approximately $1.4 billion, up from the previous estimate of $1.3 billion.
- Effective Income Tax Rate revised down to 24.0%, from 24.5%.
- Adjusted Diluted EPS forecasted at approximately $12.25, slightly raised from $12.20 to $12.45.
- Capital Expenditures expected to reach up to $2.5 billion.
Store Operations:
- As of October 31, 2025, Lowe’s operated 1,756 stores, with a total of 195.8 million square feet of retail space.
Summary:
Lowe’s Q3 2025 results highlight a mix of challenges with net earnings and diluted EPS declines, contrasted with growth in adjusted EPS and total sales. The company’s focus on capital allocation and acquisitions signifies a commitment to growth despite ongoing macroeconomic uncertainties. The declared dividend illustrates ongoing shareholder value consideration amidst strategic expansions and adjustments in business operations.
Here are the extracted tables in Markdown format:
Consolidated Statements of Operations
(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 | Amount % Sales | Amount % Sales | Amount % Sales | Amount % Sales |
| Earnings | ||||
| Net sales | $20,813 | 100.00 | $65,701 | 100.00 |
| Cost of sales | 13,697 | 65.81 | 43,497 | 66.20 |
| Gross margin | 7,116 | 34.19 | 22,204 | 33.80 |
| Expenses: | ||||
| Selling, general and administration | 4,160 | 19.99 | 12,381 | 18.85 |
| Depreciation and amortization | 475 | 2.28 | 1,378 | 2.10 |
| Operating income | 2,481 | 11.92 | 8,445 | 12.85 |
| Interest – net | 352 | 1.69 | 1,002 | 1.52 |
| Pre-tax earnings | 2,129 | 10.23 | 7,443 | 11.33 |
| Income tax provision | 513 | 2.46 | 1,789 | 2.72 |
| Net earnings | $1,616 | 7.77 | $5,654 | 8.61 |
| Weighted average common shares outstanding – basic | 559 | 559 | ||
| Basic earnings per common share(1) | $2.88 | $10.09 | ||
| Weighted average common shares outstanding – diluted | 560 | 560 | ||
| Diluted earnings per common share(1) | $2.88 | $10.07 | ||
| 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.
Consolidated Balance Sheets
(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 |