Lowe's Earnings Rise, 2026 Outlook Cautions

Lowe's earnings on Feb. 25, 2026 showed higher fourth-quarter sales and adjusted earnings, but the company issued fiscal 2026 guidance signaling slower comparable-sales growth and narrower margins amid home-improvement market uncertainty.

Fourth-Quarter Results and Fiscal 2026 Guidance

Lowe's Companies, Inc. reported net sales of $20.6 billion for the quarter ended Jan. 30, 2026, up from $18.6 billion a year earlier, with comparable sales rising 1.3%. The gains were driven by the Pro segment, online sales, services, and holiday demand.

The company reported net earnings of $1.0 billion and diluted earnings per share (EPS) of $1.78, down from $1.99 a year earlier. Adjusted diluted EPS increased 2.6% to $1.98. Operating margin narrowed to 8.3% from 9.9%, with adjusted operating margin at 9.0% and gross margin at 32.5%. The quarter included $149 million of pre-tax acquisition-related costs tied to the completed purchases of Foundation Building Materials and Artisan Design Group.

For fiscal 2025, Lowe's reported full-year sales of $86.3 billion, diluted EPS of $11.85, and adjusted diluted EPS of $12.28. Operating margin was about 11.8% (12.1% adjusted).

The company’s fiscal 2026 guidance calls for sales between $92.0 billion and $94.0 billion, reflecting 7% to 9% growth, with comparable sales flat to up 2%. It expects an operating margin of 11.2% to 11.4% (adjusted 11.6% to 11.8%, excluding roughly 40 basis points of intangible amortization) and diluted EPS of about $11.75 to $12.25 (adjusted $12.25 to $12.75). The outlook factors in home-improvement market uncertainty, the Pro/Total Home strategy, productivity initiatives, and acquisition integration. Net interest expense is projected at roughly $1.6 billion, with capital spending planned around $2.5 billion.

Capital Allocation and Balance Sheet

Lowe's returned $673 million in dividends during the fourth quarter and $2.6 billion for fiscal 2025. The recent acquisitions are complete, with no outstanding approvals.

At quarter end, the company held $982 million in cash and $37.5 billion in long-term debt. It operated 1,759 stores totaling approximately 196 million square feet of retail space. The guidance and acquisition-related costs highlight 2026 capital-allocation trade-offs among integration spending, dividends, and planned capital expenditures.