Lowe’s Lifts Sales Outlook on Strong Online Growth and Pro Expansion
Adjusted Earnings and Online Sales Fuel Q3 Outperformance
Lowe’s Companies, Inc. (NYSE: LOW) posted solid third-quarter 2025 results, delivering adjusted diluted earnings per share (EPS) of $3.06—a 5.9% rise from last year’s adjusted figures—even as reported EPS declined slightly to $2.88 due to acquisition-related expenses. Net earnings came in at $1.6 billion, with comparable sales up 0.4%, marking another quarter of resilience in a still-challenging retail environment.
What’s powering these gains? Online sales jumped an impressive 11.4%, and home services notched double-digit growth. The recent closing of the Foundation Building Materials (FBM) acquisition signals a push to expand offerings for professional customers—a strategic bet to support long-term sales momentum.
Table: Lowe’s Key Q3 Financial Highlights
| Metric | Q3 2025 | Q3 2024 | Change (%) |
|---|---|---|---|
| Total Sales | $20.81B | $20.17B | +3.17 |
| Comparable Sales | +0.4% | --- | --- |
| Net Earnings | $1.62B | $1.70B | -4.71 |
| Reported Diluted EPS | $2.88 | $2.99 | -3.68 |
| Adjusted Diluted EPS | $3.06 | $2.89 | +5.88 |
| Online Sales Growth | 11.4% | --- | --- |
| Dividend Per Share | $1.20 | $1.15 | +4.35 |
Sales Guidance Raised, Margins Narrow as Investments Ramp Up
Lowe’s is raising its full-year 2025 sales outlook to $86.0 billion (from a previous range of $84.5–$85.5 billion), citing ongoing momentum in digital and professional customer segments. However, adjusted operating margin is expected to slip to 12.1% (versus 12.2%–12.3% previously), reflecting heavier investment and integration costs linked to the FBM acquisition. The company anticipates adjusted diluted EPS of about $12.25, capital expenditures up to $2.5 billion, and net interest expenses rising to $1.4 billion.
Management attributes this more cautious profit guidance to macroeconomic headwinds and transaction expenses but signals confidence in strategic priorities. With 1,756 stores covering nearly 196 million square feet, Lowe’s continues to balance store footprint, e-commerce, and Pro service expansion.
Table: 2025 Full-Year Updated Outlook
| Metric | 2025 Updated Outlook | Prior Outlook |
|---|---|---|
| Total Sales | $86.00B | $84.5B–$85.5B |
| Comparable Sales | Flat | Flat to +1% |
| Adjusted Operating Margin | 12.1% | 12.2%–12.3% |
| Adjusted Diluted EPS | $12.25 | $12.20–$12.45 |
| Net Interest Expense | $1.4B | $1.3B |
| Income Tax Rate | 24.0% | 24.5% |
| Capital Expenditures | Up to $2.5B | --- |
Capital Allocation Priorities Support Growth and Shareholder Returns
During the quarter, Lowe’s spent $8.8 billion on the FBM acquisition, reflecting a bold commitment to grow its Pro business and home services footprint. The company also paid $673 million in dividends, reinforcing its emphasis on delivering shareholder value through both capital reinvestment and direct returns.
Cash flow from operations remains robust, although cash and equivalents declined to $621 million as large acquisition payments and investments went out the door. With an increased debt load—now at $37.50 billion (long-term)—the spotlight turns to whether sales and margin improvements will keep pace with financial leverage.
Outlook: Growth Engines Remain, But Risks Linger
Lowe’s appears positioned for further sales and earnings expansion, leveraging digital momentum and a sharper focus on professional customers. Yet, as noted in its own forward-looking statements, economic volatility, interest rate risk, and integration costs pose challenges that warrant careful monitoring. With updated guidance and aggressive strategic investments, Lowe’s performance over the next several quarters will reveal if these moves pay off in sustainable margin and profit growth.
Investors and stakeholders can get more details—and possibly fresh signals—on Lowe’s Q3 performance by listening to the company’s webcast conference call and reviewing supplemental materials available at ir.lowes.com.
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