Lowe's (LOW) Q2 2025 Earnings
Excludes $43 million pre-tax expenses from Artisan Design Group acquisition (transaction costs and purchase accounting adjustments), which reduced GAAP diluted EPS by $0.06
How Did LOW Stock React to Q2 2025 Earnings?
S&P 500 over the same 30 days: +4.50%.
Did LOW Beat Earnings? Q2 2025 Results
Yes. Lowe's reported Q2 2025 earnings of $4.33 a share on Aug 20, 2025, beating the $4.24 consensus estimate by 2.1%. Revenue was $24.0B against a $24.0B estimate.
Lowe's posted a clean earnings beat in its fiscal second quarter of 2025, with adjusted diluted EPS of $4.33 clearing the $4.24 consensus estimate by 2.15%, as revenue of $23.96 billion edged past expectations and rose 1.6% year over year. The quarter's central narrative was the June closing of the Artisan Design Group acquisition for roughly $1.31 billion, a deal that expands Lowe's footprint in the new home construction market and deepens its reach with professional customers, though it generated $43 million in pre-tax transaction costs and purchase accounting charges during the period. Comparable sales grew 1.1%, with nine of 15 regions and nine of 14 product categories turning positive, a marked improvement from the prior year's negative comp trend. Looking ahead, Lowe's raised its full-year total sales guidance to $84.50 to $85.50 billion, incorporating ADG contributions, while keeping its comparable sales outlook flat to up 1%; the company separately announced an $8.8 billion deal to acquire Foundation Building Materials, signaling continued aggressive expansion into the professional builder segment.
- Positive comp sales of 1.1% driven by solid Pro and DIY performance
- 9 of 15 regions delivered positive comp sales growth
- 9 of 14 product categories delivered positive comp sales
- Online sales grew 7.5%
- Gross margin expanded 34 basis points year over year to 33.81%
- Positive Pro comp sales on top of strong mid-single-digit growth last year
- Comp average ticket increased 2.9%
- Comp transactions increased 0.3% in July after declining in May and June
“This quarter, the company delivered positive comp sales driven by solid performance in both Pro and DIY. Despite challenging weather early in the quarter, our teams drove both sales growth and improved profitability. I'd also like to thank our front-line associates for their outstanding service which led to another increase in customer satisfaction scores.”
Lowe's CEO, on the earnings call
What Was Lowe's's Outlook in Q2 2025?
Lowe's updated its full year 2025 outlook to incorporate ADG operations. Total sales are now expected to be $84.5 to $85.5 billion (previously $83.5 to $84.5 billion). Comparable sales are expected to be flat to up 1%. Operating margin is expected at 12.1% to 12.2% (previously 12.3% to 12.4%), with adjusted operating margin of 12.2% to 12.3%. Diluted EPS is expected at approximately $12.10 to $12.35 (previously $12.15 to $12.40), with adjusted diluted EPS of approximately $12.20 to $12.45. Net interest expense is expected to be approximately $1.3 billion, effective tax rate approximately 24.5%, and capital expenditures approximately $2.5 billion. The company noted its expectations for core business performance remain unchanged.
LOW YoY Financials
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $24.0B | $23.6B | +1.6% |
| Gross Profit | $8.1B | $7.5B | +8.4% |
| Operating Income | $3.5B | $3.4B | +1.9% |
| Net Income | $2.4B | $2.4B | +0.6% |
Figures from SEC filings and company reports. Not investment advice.