Lowe’s Companies, Inc. reported fiscal third‑quarter 2025 results on November 19, 2025, delivering an adjusted earnings per share of $3.06—up 5.9 % from the same period a year earlier—while revenue reached $20.81 billion, a 3 % year‑over‑year increase that fell slightly short of the consensus estimate of $20.85 billion. Comparable sales grew 0.4 %, driven by an 11.4 % jump in online sales, double‑digit expansion in home‑services, and continued strength in the professional‑contractor segment. Gross margin improved to 34.2 % from 33.7 % a year ago, reflecting pricing power and disciplined cost management.
The earnings beat can be attributed to a combination of cost containment and a favorable mix shift. Lowe’s maintained tight control over operating expenses while benefiting from higher‑margin online and professional‑contractor sales, which offset the lower‑margin performance in legacy DIY categories. The company’s pricing strategy, supported by the recent acquisition of Foundation Building Materials (FBM), allowed it to capture additional margin in the Pro channel without eroding volume.
Revenue missed the consensus estimate by roughly $40 million, a small deviation that the company attributes to broader macro‑economic softness. While demand in the DIY discretionary space remained subdued, the firm’s online and home‑services channels continued to grow, cushioning the impact of a modest decline in traditional in‑store sales. The slight miss underscores the ongoing uncertainty in consumer spending, especially in the face of inflationary pressures and higher interest rates.
Lowe’s raised its full‑year revenue forecast to $86 billion, up from the prior range of $84.5 billion to $85.5 billion, signaling confidence in sustained demand across its core channels. However, the company trimmed its adjusted EPS guidance to the lower end of its previous $12.20‑$12.45 range, citing “ongoing macro uncertainty.” The guidance shift reflects management’s caution about potential headwinds while maintaining optimism about the company’s cost‑control trajectory and the long‑term benefits of the FBM integration.
Segment analysis shows that the Pro and online businesses were the primary growth engines. Online sales grew 11.4 %, driven by increased e‑commerce traffic and a broader product assortment, while the Pro channel benefited from the FBM acquisition, which expanded Lowe’s footprint in the professional‑contractor market. Home‑services sales also grew double‑digit, offsetting softness in DIY discretionary spending. Together, these segments helped lift gross margin and support the company’s earnings performance.
Management emphasized the company’s resilience amid external challenges. Chairman, president and CEO Marvin R. Ellison noted that “the company delivered another quarter of positive comp sales, and we’re pleased to start November with positive comps as well, despite headwinds related to hurricane activity in the prior year.” He added that the FBM acquisition “enhances our offering to Pro customers and creates more sustainable, long-term sales and profit expansion.” Investors responded positively to the earnings beat and the raised revenue forecast, underscoring confidence in Lowe’s strategic growth initiatives.
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