Lowe's Reports Mixed Q4 2025 Results, Provides FY 2026 Outlook Amidst Challenging Housing Market
Summary
Lowe's announced its Q4 and full-year 2025 financial results, reporting positive comparable sales and adjusted EPS growth, alongside a decrease in GAAP EPS. The company also issued its fiscal year 2026 outlook, forecasting sales and comparable sales growth despite a challenging housing market.
Key Events
-
Q4 2025 Financial Performance
For the fourth quarter ended January 30, 2026, Lowe's reported total sales of $20.6 billion, up from $18.6 billion in the prior-year quarter. Comparable sales increased by 1.3%. Diluted EPS was $1.78, down from $1.99 in Q4 2024, while adjusted diluted EPS increased 2.6% to $1.98.
-
Full Year 2025 Results
For the full fiscal year 2025, total sales reached $86.3 billion, with comparable sales increasing by 0.2%. Diluted EPS was $11.85, compared to $12.23 in FY 2024, and adjusted diluted EPS was $12.28, up from $11.99 in FY 2024.
-
Fiscal Year 2026 Outlook Provided
Lowe's introduced its outlook for fiscal year 2026, projecting total sales between $92.0 billion and $94.0 billion, representing an increase of approximately 7% to 9%. Comparable sales are expected to be flat to up 2%. Diluted EPS is forecast to be between $11.75 and $12.25, with adjusted diluted EPS between $12.25 and $12.75.
-
Strategic Commentary and Capital Allocation
CEO Marvin R. Ellison noted strong Q4 results driven by the 'Total Home strategy' resonating with Pro and DIY customers, despite a pressured housing macro. The company returned $673 million to shareholders through dividends in Q4, totaling $2.6 billion for the fiscal year.
Analysis
Lowe's reported its fourth quarter and full fiscal year 2025 financial results, presenting a mixed picture. While GAAP diluted EPS for Q4 2025 decreased compared to the prior year, adjusted diluted EPS saw a modest increase, and comparable sales were positive. The company also provided its full-year 2026 outlook, projecting sales growth and comparable sales ranging from flat to up 2%. Management acknowledged a pressured housing macro environment but expressed confidence in its 'Total Home strategy' and ongoing productivity initiatives. This filing is important as it provides crucial insights into the company's recent performance and forward-looking guidance, which will significantly influence investor sentiment and valuation in the current economic climate.
At the time of this filing, LOW was trading at $269.68 on NYSE in the Trade & Services sector, with a market capitalization of approximately $156.3B. The 52-week trading range was $206.39 to $293.06. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.