Lowe’s Companies, Inc. reported fiscal 2025 fourth‑quarter results that included net earnings of $1.0 billion, diluted earnings per share of $1.78, and adjusted diluted earnings per share of $1.98. Total sales rose 10.9 % year‑over‑year to $20.6 billion, and comparable sales increased 1.3 % driven by stronger performance in the professional contractor segment, online sales, and home‑services offerings.
The company’s adjusted diluted earnings per share beat consensus estimates of $1.94 by $0.04, a 2.06 % outperformance. Revenue also exceeded expectations, with $20.6 billion beating the $20.34 billion estimate by $0.24 billion, or 1.18 %. The earnings beat was largely attributable to the holiday season’s robust demand and the continued expansion of the Pro, online, and home‑services channels, which offset headwinds in the DIY segment.
GAAP operating margin contracted to 8.30 % from 9.87 % in the same quarter a year earlier, while adjusted operating margin fell to 9.0 % from 12.1 %. The decline reflects $149 million in pre‑tax expenses related to the acquisitions of Foundation Building Materials and Artisan Design Group, which impacted GAAP diluted earnings per share. Despite the margin compression, the company maintained strong top‑line growth and disciplined cost management, as evidenced by the adjusted earnings beat.
For fiscal 2026, Lowe’s guidance projects total sales of $92.0 billion to $94.0 billion, a 7 % to 9 % year‑over‑year increase, and comparable sales that are expected to be flat to up 2 %. Diluted earnings per share are forecast at $11.75 to $12.25, with adjusted diluted earnings per share projected at $12.25 to $12.75. The guidance signals a cautious outlook amid a pressured housing market and ongoing acquisition costs, while still reflecting confidence in the company’s productivity initiatives and the “Total Home” strategy.
Management emphasized the strength of the quarter and the company’s focus on execution. "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. 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," said CEO Marvin R. Ellison. "While the housing macro remains pressured, we are focused on directing what is within our control, which includes our ongoing productivity initiatives. We remain confident that we are well‑positioned to take share regardless of the macro environment," he added. CFO Brandon Sink noted, "Starting with our fourth quarter results, we generated GAAP diluted earnings per share of $1.78. In the quarter, we recognized $149 million in non‑GAAP charges associated with the acquisitions of Foundation Building Materials, or FBM, and Artisan Design Group, or ADG."
Headwinds for the quarter included a pressured housing market, weakness in the DIY sector, and acquisition‑related expenses. Tailwinds were driven by the continued growth of the Pro, online, and home‑services segments, strong holiday sales, and the company’s productivity initiatives. Investors focused on the cautious fiscal‑year guidance and margin pressures, tempering enthusiasm despite the earnings beat.
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