Lowe’s reported fourth-quarter results on Wednesday, beating Wall Street revenue and earnings expectations as quarterly sales rose more than 10% year over year. Adjusted earnings per share came in at $1.98 versus the $1.94 analysts had forecast, and revenue reached $20.58 billion against a $20.34 billion estimate. The company issued full-year sales guidance of $92 billion to $94 billion and adjusted EPS guidance of $12.25 to $12.75, which fell short of the market consensus. Shares moved lower in premarket trade after investors weighed the conservative EPS outlook against the top-line beat.
Key Takeaways
- Lowe’s reported Q4 adjusted EPS of $1.98, exceeding the LSEG-surveyed estimate of $1.94.
- Revenue for the quarter was $20.58 billion, up from $18.55 billion a year earlier and above the $20.34 billion expected.
- Net income for the three months ended Jan. 30 fell to $999 million (or $1.78 per share) from $1.13 billion ($1.99) in the prior-year quarter.
- Comparable sales rose 1.3% in the quarter, surpassing the 0.2% gain analysts had projected (StreetAccount).
- Full-year sales guidance was set at $92–94 billion (roughly +7% to +9% year over year); adjusted EPS guidance of $12.25–12.75 lagged the $12.95 consensus (LSEG).
- Management emphasized productivity and market-share aims despite a pressured housing backdrop driven by higher mortgage rates and slower real estate activity.
Background
The U.S. home-improvement sector has faced persistent headwinds from elevated mortgage rates and a cooling residential real estate market, which have prompted many consumers to delay large renovation projects. Within that environment, big-box retailers compete for both do-it-yourself homeowners and professional contractors; the mix between those customer groups shapes revenue volatility and margin dynamics. Lowe’s and rival Home Depot regularly signal the health of home improvement demand—both companies have shown resilience but remain sensitive to housing-cycle shifts. Earlier reporting cycles have seen chains deliver mixed results: top-line strength from smaller projects and professional work, paired with conservative forward guidance to manage investor expectations.
Lowe’s CEO Marvin Ellison has prioritized initiatives to improve productivity and serve both DIY customers and pros, a strategy the company says is starting to show results. The retailer’s merchandising, pricing and service investments aim to capture share even when the housing macro is constraining larger-ticket transactions. Investors watch comparable sales, adjusted EPS, and guidance ranges closely as they indicate whether operational gains offset macro pressure. The competitive backdrop also includes Home Depot, which reported its own beat but likewise kept cautious full-year assumptions, reinforcing industry-wide uncertainty.
Main Event
For the fiscal fourth quarter, Lowe’s delivered revenue of $20.58 billion, a gain from $18.55 billion in the year-ago period and comfortably above analyst forecasts. Adjusted earnings per share of $1.98 surpassed the consensus of $1.94, driven by higher sales and ongoing productivity measures, though GAAP net income declined to $999 million. Comparable-store sales increased by 1.3%, outpacing the 0.2% gain projected by analysts surveyed by StreetAccount, indicating steadier demand for routine projects and services.
Management framed the results as validation of its strategic focus: improved execution with investments in customer-facing operations and cost initiatives. CEO Marvin Ellison said the company is directing efforts at controllable levers to sustain performance even as housing conditions remain weak. Despite the quarter’s operational positives, Lowe’s outlook for full-year adjusted EPS landed below the LSEG consensus estimate of $12.95, prompting the market to mark down the stock in premarket trading.
The company also highlighted that full-year total sales are expected in the $92–94 billion range, implying roughly 7%–9% growth from the prior year, while comparable sales are projected to be approximately flat to up 2%. Management emphasized that while large renovation projects remain subdued, smaller-scale DIY work and professional activity have helped lift sales. Investors will parse whether the sales strength can be sustained across the year and whether productivity gains translate to margin improvement if volume softens.
Analysis & Implications
Lowe’s ability to beat near-term estimates while offering conservative earnings guidance suggests management is balancing optimism about execution with caution about the macro outlook. The revenue beat and 10%+ sales growth point to successful demand capture in the quarter, but the narrower EPS outlook underscores lingering concerns about margin pressure and the timing of any housing recovery. For shareholders, this mix reduces near-term upside tied to earnings revisions and shifts focus to whether margins can be recovered through efficiency programs.
Operationally, the company’s emphasis on productivity initiatives matters: if cost and inventory actions persist, Lowe’s may preserve profitability even with tepid large-ticket demand. The pro customer segment is particularly important because professional contractors can provide steadier, repeat revenue streams; any gains there would support more stable comps. Conversely, a prolonged housing slowdown would keep contractors cautious and consumers deferring big projects, limiting upside for the major chains.
From a competitive perspective, Lowe’s performance relative to Home Depot will be watched closely. Both chains reported beats but cautious guidance, which signals that industry leaders see limited upside in a high-rate environment. Market-share movements will likely be incremental rather than dramatic, hinging on service, fulfillment, and pricing rather than macro-driven volume swings. Policymakers and rate trajectories remain the largest external variables that could materially change the outlook over the next 12–18 months.
Comparison & Data
| Metric | Q4 FY2025 | Year-ago | Street Estimate |
|---|---|---|---|
| Revenue | $20.58 billion | $18.55 billion | $20.34 billion |
| Adjusted EPS | $1.98 | $1.99 (GAAP per-share differed) | $1.94 |
| Net income (GAAP) | $999 million | $1.13 billion | — |
| Comparable sales | +1.3% | — | +0.2% |
The table contrasts Lowe’s reported metrics with the prior year and analyst expectations. Revenue rose roughly $2.03 billion year over year, highlighting a meaningful top-line expansion even as GAAP net income declined. Comparable sales outperformed the StreetAccount projection, suggesting pockets of demand resilience. Full-year sales guidance of $92–94 billion, if realized, would mark a mid-single-digit percentage increase over the prior year.
Reactions & Quotes
Company leadership framed the quarter as a demonstration that strategic investments and productivity work are supporting performance despite a challenged housing market. Management pointed to both DIY and professional customer segments as drivers and emphasized controllable operational levers.
We remain focused on the things we can control and believe our investments position Lowe’s to take market share even with a pressured housing environment.
Marvin Ellison, CEO of Lowe’s
Market commentators noted the tension between the strong top-line beat and the more cautious full-year EPS outlook, which was weaker than the LSEG consensus. That discrepancy explains the stock’s intraday weakness despite positive quarterly sales and comp metrics.
The guidance range for adjusted EPS is below the LSEG consensus of $12.95, which is why investors reacted to the outlook even after the quarterly beat.
LSEG (market data provider)
Industry peers also signaled similar dynamics: Home Depot reported a beat and maintained conservative forward assumptions, underscoring that demand remains uneven across categories and geographies. Customers and contractors active during the quarter cited smaller projects and maintenance work as primary sources of spending rather than large remodels.
Quarterly results across leading retailers point to stable small-ticket activity while larger renovation purchases continue to lag.
StreetAccount (financial news service)
Unconfirmed
- Whether Lowe’s asserted ability to gain share will materialize across all regions—management’s share-gain claims are not yet independently verified by third‑party market-share data.
- The exact split of the quarter’s sales growth between DIY customers and professional contractors has not been publicly detailed by Lowe’s for this release.
- How sustained the comparable‑sales improvement will be through the fiscal year is uncertain and depends on mortgage rates and housing turnover remaining stable or improving.
Bottom Line
Lowe’s delivered a clear top-line beat in the fiscal fourth quarter with revenue of $20.58 billion and adjusted EPS of $1.98, driven by modest comparable-sales growth and continued productivity efforts. However, the company’s full‑year adjusted EPS guidance of $12.25–12.75 fell short of the LSEG consensus, tempering investor enthusiasm and resulting in a premarket share decline.
The quarter highlights a familiar theme for big-box home-improvement retailers in a high-rate environment: operational execution can lift near-term results, but persistent macro weakness limits visibility and constrains earnings upside. For investors and industry observers, the focus will be on whether Lowe’s productivity programs and pro-customer initiatives can sustain margins and translate top-line gains into durable earnings growth as the housing backdrop evolves.
Sources
- CNBC — news media report summarizing the company release and market reaction
- LSEG — market data provider (consensus figures referenced)
- StreetAccount — financial news/service cited for comparable-sales expectation