Lowe’s Q4 Earnings Show Resilience Despite Housing Slump

By Jordan Chussler Published Feb 26, 10:47AM EST

Quick Read

Lowe’s (LOW) beat Q4 expectations with $1.98 EPS and revenue up 10.9% to $20.58B. Shares fell 6%.
Lowe’s FY2026 guidance projects comparable sales flat to up 2% amid pressured housing macro.
FBM and Artisan Design Group acquisitions added $293M in costs but drove bulk of revenue growth.

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Lowe’s Q4 Earnings Show Resilience Despite Housing Slump — © ivanastar / Getty Images

Lowe’s (NYSE: LOW) | LOW Price Prediction closed out FY2025 on a high note, reporting earnings $1.98, which topped analyst expectations of $1.94, and quarterly revenue rising 10.9% year-over-year to $20.58 billion, exceeding analyst estimates of $20.34 billion.

Total sales for the quarter were $20.6 billion, compared to $18.6 billion in the prior-year quarter. Comparable sales for the quarter increased 1.3%, driven by continued growth in Pro, online and home services sales, as well as strong holiday performance.

“We delivered strong results this quarter, as our Total Home strategy is resonating with both our Pro and DIY customers, which was evident during a great holiday season. Given our outperformance this quarter, we awarded $125 million in discretionary bonuses to our frontline associates in recognition of their hard work and outstanding customer service,” said Marvin R. Ellison, Lowe’s chairman, president and CEO. “While the housing macro remains pressured, we are focused on directing what is within our control, which includes our ongoing productivity initiatives. We remain confident that we are well-positioned to take share regardless of the macro environment.”

Nonetheless, shares of LOW are down more than 6% since as the market digests the report.

2026 Full-Year Guidance

Total sales of $92.0 to $94.0 billion or an increase of approximately 7% to 9% compared to prior year
Comparable sales expected to be flat to up 2% as compared to prior year
Operating income as a percentage of sales (operating margin) of 11.2% to 11.4%
Adjusted¹ operating income as a percentage of sales (adjusted operating margin) of 11.6% to 11.8%
Net interest expense of approximately $1.6 billion
Effective income tax rate of approximately 24.5%
Diluted earnings per share of approximately $11.75 to $12.25
Adjusted¹ diluted earnings per share of approximately $12.25 to $12.75
Capital expenditures of approximately $2.5 billion

Bottom Line

Lowe’s Q4 results reflect a company navigating a challenging backdrop with reasonable success. The EPS miss was partly a function of elevated acquisition costs from the FBM and Artisan Design Group deals, which added $293M in full-year expenses but also drove the bulk of revenue growth. Consumer sentiment, sitting at 56.4 on the University of Michigan index and down 12.8% year-over-year, remains a real headwind for discretionary home improvement spending. Housing starts at 1.40M annualized units, down 5.8% year-over-year, reinforce management’s cautious tone on the housing macro.

The FY2026 guidance range is constructive but wide, and investors should watch whether comparable sales can push toward the upper end of that flat-to-2% range as the year progresses. The integration of FBM and Artisan Design Group will be the key operational story to monitor in the quarters ahead, particularly whether margin expansion targets of 11.6%-11.8% adjusted operating margin prove achievable as acquisition costs normalize.

About the Author Jordan Chussler →

Jordan specializes in a wealth of finance topics, ranging from traditional equities, income investment vehicles and alternative assets to retirement savings, debt-based fixed-income securities and commodities, with a specific focus on gold and other precious metals. He takes pride in combining his personal interests and professional experience in finance and education to help readers increase their financial literacy and make better investment choices. Jordan has worked in digital publishing for 17 years after graduating from Lynn University as a member of both the Kappa Delta Pi International Honor Society and the U.S. Achievement Academy's All-American Scholar Program. He is the investing and banking editor for Money and previously served as managing editor of Weiss Ratings. As a contributing writer for BetterInvesting Magazine, Jordan covered topics focused on the fundamentals of investing, technical and fundamental analysis, mutual funds, debt securities, dividend investing, retirement savings strategies and passive income generation. His bylines can be seen at Nasdaq.com, Apple News, Money, MSN, BetterInvesting Magazine, Money Crashers, TipRanks, the Miami Herald and a dozen other newspapers.