Lowe’s Companies (NYSE:LOW) Posts Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Lowe’s Companies (NYSE:LOW) released its earnings results on Wednesday. The home improvement retailer reported $1.98 EPS for the quarter, topping analysts’ consensus estimates of $1.94 by $0.04, FiscalAI reports. Lowe’s Companies had a net margin of 7.71% and a negative return on equity of 61.40%. The business had revenue of $20.58 billion for the quarter, compared to the consensus estimate of $20.34 billion. During the same period in the previous year, the firm earned $1.93 EPS. The business’s revenue for the quarter was up 10.9% on a year-over-year basis. Lowe’s Companies updated its FY 2026 guidance to 12.250-12.75 EPS.

Here are the key takeaways from Lowe’s Companies’ conference call:

• FY2025 results — sales of $86.3B (Q4 $20.6B), Q4 comps +1.3% and adjusted EPS of $12.28, up 2% year-over-year, reflecting margin resilience despite a tough macro.
• 2026 guidance is cautious and shows margin pressure — Lowe’s expects $92B–$94B in sales, comps flat to +2% and adjusted EPS ~$12.25–$12.75, but warned of ~30 bps dilution from FBM/ADG in 2026 (50 bps annualized) and a ~75 bp gross-margin headwind.
• Strategic growth areas gaining traction — Online grew 10.5% with holiday records, Home Services posted high-single-digit growth, and Pro momentum (expanded DEWALT assortment, Pro Extended Aisle, AI Pro Companion) is driving share and planned spend.
• Productivity and cost actions — management targets roughly $1B of PPI productivity in 2026, completed SKU rationalization and AI-enabled tools, and announced ~600 corporate role reductions while awarding $125M in discretionary frontline bonuses.

Lowe’s Companies Price Performance

Shares of Lowe’s Companies stock traded down $0.65 during trading hours on Friday, hitting $263.74. The company’s stock had a trading volume of 1,098,109 shares, compared to its average volume of 2,900,783. Lowe’s Companies has a 12 month low of $206.38 and a 12 month high of $293.06. The company has a market capitalization of $147.94 billion, a PE ratio of 22.26, a price-to-earnings-growth ratio of 4.24 and a beta of 0.97. The stock has a 50 day moving average of $266.42 and a 200 day moving average of $254.31.

Insider Buying and Selling at Lowe’s Companies

In other Lowe’s Companies news, CEO Marvin R. Ellison sold 18,000 shares of the business’s stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $261.17, for a total transaction of $4,701,060.00. Following the transaction, the chief executive officer owned 231,043 shares of the company’s stock, valued at $60,341,500.31. The trade was a 7.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.27% of the stock is owned by corporate insiders.

Institutional Trading of Lowe’s Companies

A number of institutional investors have recently bought and sold shares of the business. Swiss RE Ltd. acquired a new position in Lowe’s Companies during the fourth quarter worth about $25,000. Wilkerson Advisory Group LLC acquired a new stake in Lowe’s Companies in the 4th quarter valued at $27,000. Triumph Capital Management bought a new stake in Lowe’s Companies during the third quarter worth $34,000. Garton & Associates Financial Advisors LLC purchased a new position in shares of Lowe’s Companies in the 4th quarter worth approximately $49,000. Finally, Osterweis Capital Management Inc. grew its position in Lowe’s Companies by 4,620.0% during the second quarter. Osterweis Capital Management Inc. now owns 236 shares of the home improvement retailer’s stock valued at $52,000 after buying an additional 231 shares during the period. Institutional investors own 74.06% of the company’s stock.

Lowe’s Companies News Roundup

Here are the key news stories impacting Lowe’s Companies this week:

• Positive Sentiment: Q4 beat on the top and bottom lines — Lowe’s reported $1.98 EPS (vs. $1.94 est.) and $20.58B revenue (+10.9% y/y), showing operating resilience despite a soft housing backdrop. Lowe’s Reports Fourth Quarter 2025 Sales and Earnings Results
• Positive Sentiment: Wall Street support: several firms raised price targets or reiterated Outperform/Buy (Mizuho to $294; Telsey to $295; Goldman & Guggenheim to $300; Wells to $290), signaling confidence in Lowe’s execution and the company’s long‑term thesis. Benzinga
• Positive Sentiment: Macro tailwind developing — 30‑year mortgage rates dipped below 6%, which could eventually revive housing turnover and larger renovation spend. That’s a potential catalyst for demand recovery. Mortgage Rates Fall Below 6%
• Positive Sentiment: Management is targeting $1 billion in productivity gains for fiscal 2026 to offset cost pressures — a constructive margin / free‑cash‑flow initiative if delivered. Lowe’s Aims for $1 Billion in Productivity Gains
• Neutral Sentiment: Unusually large options volume was reported, indicating elevated trader interest/hedging near current levels but not a directional guarantee. Lowe’s Sees Unusually Large Options Volume
• Neutral Sentiment: Market narratives: some outlets frame the post‑earnings drop as a buy‑the‑dip opportunity given durable fundamentals and dividend history, which may attract long‑term income investors. Home Depot & Lowe’s: Buying the Earnings Dip
• Negative Sentiment: Soft/guarded FY‑2026 outlook and management comments on a pressured housing market weighed on sentiment — investors punished the stock on guidance even though quarterly results beat expectations. Lowe’s beats Q4 estimates but shares fall on soft guidance
• Negative Sentiment: Mixed analyst reactions — a handful of firms trimmed targets or kept neutral/hold stances (TD Cowen, Sanford Bernstein, DA Davidson), reflecting concern about near‑term growth and margin dilution from acquisitions / integration. Benzinga

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the company. Royal Bank Of Canada upped their price target on Lowe’s Companies from $252.00 to $257.00 and gave the stock a “sector perform” rating in a research note on Monday. JPMorgan Chase & Co. boosted their target price on shares of Lowe’s Companies from $300.00 to $325.00 and gave the stock an “overweight” rating in a research report on Monday, February 9th. Piper Sandler reaffirmed an “overweight” rating and issued a $300.00 price target (up from $294.00) on shares of Lowe’s Companies in a research report on Thursday. Evercore lifted their price objective on Lowe’s Companies from $250.00 to $280.00 in a research note on Tuesday, January 27th. Finally, Stifel Nicolaus increased their target price on Lowe’s Companies from $230.00 to $250.00 and gave the company a “hold” rating in a research note on Monday, December 1st. Twenty-one equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $291.64.

About Lowe’s Companies

Lowe’s Companies, Inc is a leading home improvement retailer that operates large-format stores and digital channels serving both do-it-yourself homeowners and professional contractors. The company offers a broad assortment of products including building materials, lumber, appliances, tools and hardware, plumbing and electrical supplies, paint, flooring, kitchen and bath fixtures, outdoor and garden products, and home decor. Lowe’s also provides a range of services such as installation, home improvement financing, tool and equipment rental, and contractor-focused sales programs.

Operations are centered on a nationwide brick-and-mortar store network supported by distribution centers and an e-commerce platform that enables online ordering, delivery and in-store pickup.