Lowe's Q3 Earnings Rise, Sales Lag, Outlook Raised

Lowe's Companies Inc. (NYSE: LOW) reported higher third-quarter earnings and raised its full-year outlook on Nov. 19, 2025, after posting stronger adjusted profit despite weak comparable sales and completing the Foundation Building Materials acquisition.

Third-Quarter Results and Outlook

Lowe's said in a press release that adjusted diluted earnings per share, excluding acquisition costs, rose 5.9% year over year to $3.06, surpassing estimates. On a GAAP basis, diluted EPS was $2.88, and net earnings totaled $1.6 billion. The company described the quarter as delivering modest growth with a slight GAAP EPS decline but improved adjusted EPS and a broader full-year sales outlook.

Total sales increased $0.6 billion to $20.8 billion, while comparable sales rose 0.4%. Online sales climbed 11.4%, supported by double-digit growth in home services and continued expansion in the professional (Pro) customer segment.

During the quarter, Lowe's completed its $8.8 billion acquisition of Foundation Building Materials, reporting no material regulatory obstacles. The company plans to integrate the acquisition as part of its broader service and Pro-market initiatives.

Lowe's updated its full-year 2025 guidance, projecting total sales of $86.0 billion and adjusted diluted EPS near $12.25. Comparable sales are expected to be flat year over year. Adjusted operating margin guidance was lowered slightly to 12.1% from a prior range of 12.2–12.3%. The outlook assumes ongoing growth in Pro and home services, continued online momentum, and integration of the acquired business.

The company revised capital and expense assumptions, forecasting net interest expense of about $1.4 billion, an effective income tax rate near 24.0%, and capital expenditures up to $2.5 billion. These reflect financing and investment plans supporting the acquisition and growth initiatives.

Cash and cash equivalents fell to $621 million at quarter-end from $3.27 billion a year earlier, reflecting the acquisition and higher planned capital spending.

Analysts on the earnings call highlighted the stronger adjusted profit and raised guidance as key takeaways despite muted comparable sales momentum.

"Lowe’s delivered modest quarterly growth with slight EPS decline on GAAP but improved adjusted EPS and a broadened full-year sales outlook," the company said.