Lowe's (LOW) Q3 2025 Earnings
GAAP EPS of $2.88 includes $129 million in pre-tax expenses ($0.18 after-tax impact) for transaction costs and intangible asset amortization related to the acquisitions of Foundation Building Materials and Artisan Design Group. Prior-year GAAP EPS of $2.99 included $54 million pre-tax gain ($0.10 per share) on contingent consideration from the Canadian retail business sale.
How Did LOW Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +3.35%.
Did LOW Beat Earnings? Q3 2025 Results
Yes. Lowe's reported Q3 2025 earnings of $3.06 a share on Nov 19, 2025, beating the $2.95 consensus estimate by 3.6%. Revenue was $20.8B against a $20.8B estimate.
Lowe's posted a solid third quarter, delivering adjusted diluted EPS of $3.06, beating the $2.95 consensus estimate by 3.61%, even as revenue of $20.81 billion came in fractionally below the $20.84 billion Wall Street expected, rising 3.2% year over year. The headline EPS beat was driven in part by gross margin expansion of 50 basis points to 34.19%, alongside 11.4% online sales growth, double-digit gains in home services, and continued Pro segment momentum, though operating margin contracted to 11.92% from 12.57% as the company absorbed $129 million in pre-tax acquisition costs and intangible asset amortization tied to its purchases of Foundation Building Materials and Artisan Design Group. Those deals reshaped Lowe's balance sheet meaningfully, with total assets surging to $53.45 billion and long-term debt rising to $37.50 billion. Looking ahead, the company raised its full-year 2025 sales outlook to $86.00 billion to incorporate FBM contributions, while setting adjusted diluted EPS guidance at approximately $12.25, with comparable sales now expected to be flat for the year; analysts who follow the stock have largely viewed the FBM acquisition as a long-term positive for Lowe's Pro customer strategy.
- 11.4% online sales growth
- Double-digit growth in home services
- Continued growth in Pro sales
- Positive comparable sales growth of 0.4%
- Gross margin expansion of 50 basis points year over year to 34.19%
“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.”
Lowe's CEO, on the earnings call
What Was Lowe's's Outlook in Q3 2025?
Lowe's updated its full year 2025 outlook: total sales of $86.0 billion (previously $84.5 to $85.5 billion), comparable sales expected to be flat (previously flat to +1%), 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 EPS of approximately $12.25 (previously $12.20 to $12.45), and capital expenditures of up to $2.5 billion. The updated outlook reflects the ongoing uncertainty in the macroeconomic environment and includes expectations for FBM.
LOW YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $20.8B | $20.2B | +3.2% |
| Gross Profit | $7.1B | $6.4B | +11.8% |
| Operating Income | $2.5B | $2.5B | −0.0% |
| Net Income | $1.6B | $1.7B | −4.7% |
Figures from SEC filings and company reports. Not investment advice.