Lowe’s Unveils 2025 Fourth Quarter Sales and Earnings Results
Lowe’s Companies, Inc. has released its financial results for the fourth quarter of 2025, showcasing a positive performance amidst industry challenges.
Lowe’s Financial Performance Overview
For the quarter ending January 30, 2026, Lowe’s reported net earnings of $1 billion, translating to a diluted earnings per share (EPS) of $1.78. This reflects a slight decline compared to an EPS of $1.99 recorded in the same quarter of 2024.
Adjusted diluted EPS, which excludes certain expenses, increased by 2.6% to $1.98. Total sales for the quarter reached $20.6 billion, marking a significant rise from $18.6 billion in the previous year.
Sales and Growth Drivers
Comparable sales rose by 1.3%, driven by robust growth in both Pro and DIY markets, along with increased online and home services sales. Lowe’s CEO Marvin R. Ellison noted that the strong holiday performance underscored the success of their Total Home strategy. Additionally, the company allocated $125 million in discretionary bonuses to frontline associates for their dedication and service.
Capital Allocation and Shareholder Returns
- Dividends paid during the quarter amounted to $673 million.
- Total shareholder return for the fiscal year reached $2.6 billion, primarily through dividends.
Business Outlook for Fiscal Year 2026
Lowe’s has announced its projections for the fiscal year 2026, anticipating total sales between $92 billion and $94 billion. This represents an estimated growth of 7% to 9% compared to the previous year. Comparable sales are expected to remain flat to a 2% increase.
Operational Metrics
| Metric | Projection |
|---|---|
| Operating Margin | 11.2% – 11.4% |
| Adjusted Operating Margin | 11.6% – 11.8% |
| Net Interest Expense | Approximately $1.6 billion |
| Effective Income Tax Rate | Approximately 24.5% |
| Diluted EPS | $11.75 – $12.25 |
| Adjusted Diluted EPS | $12.25 – $12.75 |
| Capital Expenditures | Approximately $2.5 billion |
As of January 30, 2026, Lowe’s operates 1,759 stores across the U.S., covering around 196 million square feet of retail space. The company remains committed to enhancing shareholder value while navigating uncertainties within the home improvement market.
For additional insights and to access the recent financial disclosures, visit El-Balad.
