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

Lowe’s Companies (NYSE:LOW) issued its earnings results on Wednesday. The home improvement retailer reported $1.98 earnings per share for the quarter, beating the consensus estimate of $1.94 by $0.04, FiscalAI reports. Lowe’s Companies had a net margin of 8.05% and a negative return on equity of 55.86%. The business had revenue of $20.58 billion for the quarter, compared to the consensus estimate of $20.34 billion. During the same quarter in the previous year, the firm earned $1.93 earnings per share. The business’s quarterly revenue was up 10.9% compared to the same quarter last year. 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 Trading Down 5.4%

Shares of LOW stock traded down $15.16 during trading hours on Wednesday, hitting $263.43. The company’s stock had a trading volume of 2,697,155 shares, compared to its average volume of 2,856,362. The business has a fifty day moving average of $265.77 and a 200-day moving average of $254.17. Lowe’s Companies has a twelve month low of $206.38 and a twelve month high of $293.06. The stock has a market cap of $147.77 billion, a price-to-earnings ratio of 21.86, a P/E/G ratio of 4.28 and a beta of 0.97.

Insider Transactions at Lowe’s Companies

In related news, CEO Marvin R. Ellison sold 18,000 shares of the company’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 value of $4,701,060.00. Following the sale, the chief executive officer owned 231,043 shares of the company’s stock, valued at approximately $60,341,500.31. This represents a 7.23% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.27% of the company’s stock.

Institutional Trading of Lowe’s Companies

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Price T Rowe Associates Inc. MD boosted its position in shares of Lowe’s Companies by 45.2% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 6,555,565 shares of the home improvement retailer’s stock worth $1,580,941,000 after acquiring an additional 2,039,343 shares during the last quarter. Viking Global Investors LP acquired a new position in Lowe’s Companies during the fourth quarter worth approximately $219,948,000. Worldquant Millennium Advisors LLC raised its stake in Lowe’s Companies by 243.2% during the second quarter. Worldquant Millennium Advisors LLC now owns 1,116,945 shares of the home improvement retailer’s stock worth $247,817,000 after purchasing an additional 791,526 shares during the period. Amundi boosted its holdings in shares of Lowe’s Companies by 32.4% in the 4th quarter. Amundi now owns 1,876,570 shares of the home improvement retailer’s stock valued at $452,554,000 after purchasing an additional 459,650 shares during the last quarter. Finally, AQR Capital Management LLC boosted its holdings in shares of Lowe’s Companies by 191.8% in the 3rd quarter. AQR Capital Management LLC now owns 656,222 shares of the home improvement retailer’s stock valued at $164,915,000 after purchasing an additional 431,304 shares during the last quarter. Hedge funds and other institutional investors own 74.06% of the company’s stock.

Key Stories Impacting Lowe’s Companies

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

• Positive Sentiment: Q4 beat — Lowe’s reported adjusted EPS of $1.98 vs. the $1.94 consensus and revenue of $20.58B (above estimates); comparable sales rose ~1.3% and revenue was up ~10% YoY, driven by pro-builder demand. MarketBeat Earnings & Press Release
• Positive Sentiment: Pro/customer mix strength — multiple reports note that professional (Pro) customers and holiday demand lifted comps, supporting revenue resilience despite a weak housing backdrop. Zacks: Q4 Beat on Pro Strength
• Positive Sentiment: Restructuring & payments partnership — Lowe’s is cutting ~600 corporate/support roles and shifting resources to stores/Pro and digital, and announced a national partnership with Affirm to offer flexible payments — moves that may improve long-term margins and sales conversion. Yahoo Finance: Corporate Reset & Payments
• Neutral Sentiment: FY2026 guidance — management provided EPS guidance of $12.25–$12.75 and revenue guidance in the $92–$94B range; consensus estimates differ across sources, so investors are parsing whether guidance is conservative or aggressive relative to street expectations. Proactive: Beats Q4 but Soft Guidance
• Negative Sentiment: Cautious tone and category uncertainty — management warned of “ongoing uncertainty” in the home-improvement category and cited consumers deferring big-ticket remodels; that cautious outlook pressured the stock despite the beat. Reuters: Downbeat Sales Comment
• Negative Sentiment: One-time charges and profit dynamics — reported net/diluted EPS were down year-over-year on one-time items; investors may be focused on margin pressure and return-on-equity metrics. PR Newswire: Q4 Results & One-Time Items
• Negative Sentiment: Options activity signals hedging/speculation — unusually high put option buying (≈10,162 puts, ~38% above typical daily volume) suggests traders are positioning for further near-term downside or volatility. Benzinga: Cautious Outlook & Options Flow

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the company. Barclays raised Lowe’s Companies from an “equal weight” rating to an “overweight” rating and set a $285.00 target price for the company in a research note on Wednesday, January 7th. Sanford C. Bernstein raised their target price on Lowe’s Companies from $284.00 to $313.00 and gave the company an “outperform” rating in a report on Wednesday, February 18th. Argus lowered their price target on shares of Lowe’s Companies from $290.00 to $286.00 and set a “buy” rating on the stock in a research note on Tuesday, December 2nd. Robert W. Baird boosted their price objective on shares of Lowe’s Companies from $290.00 to $320.00 and gave the stock an “outperform” rating in a report on Tuesday, February 17th. Finally, Gordon Haskett lifted their price target on shares of Lowe’s Companies from $310.00 to $325.00 and gave the company a “buy” rating in a research report on Wednesday, February 11th. Twenty research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Lowe’s Companies currently has an average rating of “Moderate Buy” and a consensus price target of $289.59.

Lowe’s Companies Company Profile

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.