Lead
On November 19, 2025, Lowe’s reported stronger-than-expected third-quarter results but narrowed its full-year profit forecast, citing a more uncertain macroeconomic backdrop and recent acquisitions. The home improvement retailer posted adjusted earnings per share of $3.06 and revenue of $20.81 billion for the quarter, while comparable sales were essentially flat year over year. Management raised full-year total sales guidance to $86 billion after closing the Foundation Building Materials acquisition, but trimmed adjusted EPS guidance to roughly $12.25. The move reflects both strategic deals to boost pro business and persistent housing-sector headwinds.
Key Takeaways
- Lowe’s reported adjusted EPS of $3.06 for fiscal Q3, versus LSEG consensus of $2.97, marking an earnings beat.
- Revenue for the quarter was $20.81 billion, essentially in line with the $20.82 billion expected by analysts.
- Comparable sales rose 0.4% in the third quarter and the company started the current quarter with positive comps despite prior-year hurricane-related distortions.
- Net income fell to $1.62 billion, or $2.88 per share, down from $1.7 billion, or $2.99 per share, a year earlier.
- Full-year total sales guidance was lifted to $86 billion due to the acquisition of Foundation Building Materials; comparable-sales outlook was revised to flat from prior flat to up 1%.
- Adjusted full-year EPS guidance was nudged to about $12.25, at the lower end of the previous $12.20 to $12.45 range.
- Lowe’s has completed or announced pro-focused deals including Foundation Building Materials (~$8.8 billion) and Artisan Design Group (~$1.33 billion) to grow contractor and professional revenue.
Background
The home improvement sector has been contending with a soft housing market and higher borrowing costs for more than two years, pressuring do-it-yourself consumer spending. Retailers including Lowe’s and rival Home Depot have responded by pursuing professional contractors and large-scale builders to diversify revenue. In August 2025 Lowe’s agreed to acquire Foundation Building Materials, a distributor of drywall, insulation and interior building products, for approximately $8.8 billion to deepen its pro footprint. Earlier in 2025 the company announced the Artisan Design Group acquisition for about $1.33 billion, aiming to add design and installation services for builders and property managers.
Industry metrics such as comparable sales strip out one-time factors and are widely used to assess retail health; Lowe’s reported a modest 0.4% comp increase in the fiscal third quarter. The company has cited its own strategic execution as the primary driver of sales, rather than an immediate improvement in the broader home improvement market. At the same time, weather variability and lower storm activity have contributed to quarter-to-quarter swings in demand for certain categories, a dynamic noted by peers and analysts across the sector.
Main Event
Lowe’s reported fiscal third-quarter results for the period ended October 31, 2025, with adjusted EPS of $3.06 and revenue of $20.81 billion. The company noted positive comparable sales for the quarter and said the current quarter began with positive comps as well, despite comparative headwinds related to hurricane activity in the prior year. Net income on a GAAP basis declined to $1.62 billion, or $2.88 per share, compared with $1.7 billion, or $2.99 per share, in the prior-year period.
Management revised full-year guidance to reflect two primary factors: the acquisition of Foundation Building Materials and ongoing macroeconomic uncertainty. Total sales guidance was increased to $86 billion because the acquisition adds consolidated revenue, but comparable sales guidance was tightened to flat year over year from a previous range of flat to up 1 percent. Adjusted EPS guidance was moved to about $12.25, near the low end of the prior $12.20 to $12.45 range.
Shares rose more than 6 percent in premarket trading after the results, as investors reacted to the quarterly beat and management commentary that the current quarter is off to a good start. Lowe’s CEO Marvin Ellison highlighted positive comparable sales in Q3 and the start of the current quarter, while the company emphasized execution and pro channel expansion as offsets to weaker consumer activity. The firm also disclosed one-time pre-tax expenses tied to acquisitions that affected adjusted results.
Analysis & Implications
The results illustrate a split between headline beats and underlying retail pressure. Lowe’s managed an EPS upside through operational leverage and one-time adjustments, yet comparable sales that strip acquisitions and discrete items are essentially flat, underscoring still-challenged end-market demand. That divergence suggests the company is leaning more heavily on M&A and pro-focused initiatives to sustain growth than on an immediate rebound in DIY consumer spending.
The Foundation Building Materials deal repositions Lowe’s to capture a larger share of professional accounts, which typically produce higher-ticket, repeat business and more stable demand patterns. However, integrating a large distributor involves execution risk and near-term costs; Lowe’s acknowledged acquisition-related expenses that reduced GAAP income. Investors will watch margin trends and the pace at which pro revenue mix increases relative to legacy retail sales.
Macro uncertainty — from mortgage rates to construction activity and consumer confidence — remains a ceiling on upside for the sector. Home Depot’s simultaneous guidance trim signals a broader industry cycle rather than a company-specific issue, raising the bar for retail execution and cost discipline. If the housing slowdown persists, both pricing power and foot traffic could remain muted, amplifying the importance of higher-margin pro services for sustaining profitability.
Comparison & Data
| Metric | Q3 FY2025 | Prior-Year Q3 | Consensus |
|---|---|---|---|
| Adjusted EPS | $3.06 | N/A | $2.97 (LSEG) |
| Revenue | $20.81B | $20.17B | $20.82B |
| Comparable Sales | +0.4% | — | — |
| Net Income | $1.62B ($2.88/sh) | $1.7B ($2.99/sh) | — |
| Full-Year Total Sales Guidance | $86B (revised) | $84.5–$85.5B (prior) | — |
The table highlights a modest revenue gain year over year and an EPS beat versus analyst consensus. While total-sales guidance rose due to the Foundation Building Materials acquisition, comparable-sales guidance was narrowed to flat, reflecting management’s view of underlying demand. Investors should separate acquisition-driven top-line increases from organic retail trends when assessing performance. The effect of acquisition-related integration costs on margins will be a key monitoring point in coming quarters.
Reactions & Quotes
Below are selected reactions with context on timing and significance.
The retailer is starting the current quarter with positive comparable sales despite a tougher prior-year comp from hurricane activity.
Marvin Ellison, Lowe’s CEO (company news release)
Ellison’s comment frames the quarter as one where company execution, rather than improved market conditions, supported comps. Management pointed to the pro channel and recent acquisitions as contributors to resilience.
We revised guidance to reflect ongoing uncertainty in the macroeconomic environment and the Foundation acquisition.
Company finance statement, Lowe’s investor release
The CFO message emphasized that the guidance change incorporates both external economic risk and the accounting impact of the Foundation Building Materials transaction. The statement signals prudence in guidance while acknowledging inorganic growth.
Lower-than-usual storm activity and a tough housing market are weighing on results across the sector.
Richard McPhail, Home Depot CFO (sector comment)
Home Depot’s similar remarks underscore industry-wide headwinds and suggest Lowe’s guidance move is not isolated. Analysts often treat such cross-company signals as corroboration of broader retail trends.
Unconfirmed
- Whether the Foundation Building Materials acquisition will deliver the full projected revenue synergies within the first 12 months remains unconfirmed pending integration metrics and quarterly updates.
- Management commentary that the current quarter is off to a good start is an early-period assertion and may be revised as full-quarter data is reported.
- Any specific timeline or cost-to-complete estimates for integrating Artisan Design Group into Lowe’s operations have not been fully disclosed and remain subject to future reporting.
Bottom Line
Lowe’s Q3 results present a classic mixed-signal quarter: an earnings beat and modest comp improvement, balanced against a trimmed EPS outlook and tightened comp guidance that reflect macro uncertainty and acquisition effects. The company is actively reshaping its revenue mix toward professional customers via large-scale acquisitions, which lifts total-sales guidance but adds near-term integration costs and execution risk.
For investors and industry observers, the critical questions are whether pro-focused M&A can sustainably lift margins and whether housing-market headwinds ease enough to restore organic growth. Upcoming quarterly updates on integration progress, pro revenue mix, and comparable-sales traction will determine whether Lowe’s strategy offsets cyclical pressures or merely stabilizes results in a slow-growth environment.
Sources
- CNBC — media report summarizing earnings and market reaction (journalism).
- Lowe’s Investors — company investor relations and press releases (official announcement).
- LSEG — analyst consensus data referenced for earnings expectations (data provider).