Lowe’s Companies, Inc. (NYSE:LOW) reported fourth-quarter results on Wednesday, posting net earnings of $999 million and diluted EPS of $1.78 for the quarter ended Jan. 30, 2026, compared with net earnings of $1,125 million and diluted EPS of $1.99 in the fourth quarter of 2024.
During the quarter, the company recognized $149 million in pre-tax expenses associated with the acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG), which impacted reported results.
Excluding these expenses, adjusted diluted EPS increased 2.6% to $1.98 from $1.93 a year earlier and beat the $1.94 analyst estimate.
Net sales rose 10.9% to $20.584 billion from $18.553 billion and exceeded the $20.334 billion analyst estimate. Comparable sales increased 1.3%, driven by continued growth in Pro, online, and home services sales, as well as strong holiday performance.
Margins and Operating Performance
Gross margin was 32.46%, compared with 32.86% a year earlier. Operating income was $1.708 billion versus $1.830 billion, and operating margin was 8.30% versus 9.87%. Interest – net was $403 million compared with $328 million, and pre-tax earnings were $1.305 billion versus $1.502 billion.
“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 Marvin R. Ellison, Lowe’s chairman, president, and CEO.
“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.”
Full-Year Results
For fiscal 2025, net sales were $86.286 billion, up 3.1% from $83.674 billion. Net earnings were $6.654 billion compared with $6.957 billion, and diluted EPS was $11.85 versus $12.23.
Cash Flow and Balance Sheet
Net cash provided by operating activities for the fiscal year was $9.864 billion, and capital expenditures were $2.213 billion. Cash and cash equivalents were $982 million at year-end.
As of Jan. 30, 2026, current maturities of long-term debt were $2.431 billion, and long-term debt, excluding current maturities, was $37.490 billion.
On the earnings call, Lowe’s CEO said the housing market remains under pressure and emphasized that the company will stay focused on ongoing productivity initiatives to navigate the challenging environment.
A company executive also noted it is still “unclear” when mortgage rates will decline, warning that elevated rates are likely to continue weighing on existing home sales and new home construction.
Outlook
The company has issued its fiscal 2026 outlook, citing continued uncertainty in the home improvement market.
For fiscal 2026, Lowe’s forecasts total sales of $92.0 billion to $94.0 billion, compared with the $93.229 billion analyst estimate, and comparable sales expected to be flat to up 2%.
The company projected diluted EPS of approximately $11.75 to $12.25 and adjusted diluted EPS of approximately $12.25 to $12.75, compared with the $12.95 analyst estimate, with an operating margin of 11.2% to 11.4% and an adjusted operating margin of 11.6% to 11.8%.
The outlook also includes net interest expense of approximately $1.6 billion, an effective income tax rate of approximately 24.5%, and capital expenditures of approximately $2.5 billion.
LOW Price Action: Lowe’s Companies shares were down 4.42% at $266.27 at the time of publication on Wednesday, according to Benzinga Pro data.
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