Lowe’s (LOW) Posts Q3 EPS Beat and Slight Revenue Miss

Lowe’s Companies, Inc. (NYSE: LOW) has released its financial results for the third quarter of 2025, showcasing notable achievements and adjustments in its full-year outlook. Despite facing various challenges, the company managed to exceed earnings expectations while slightly missing revenue forecasts.

Mixed Q3 Performance Driven by Strong Online and Pro Sales

Lowe’s Companies, Inc. (NYSE: LOW) presented its third quarter 2025 financial results, revealing a mixed performance against market expectations. The company achieved an adjusted diluted earnings per share (EPS) of $3.06, which surpassed the anticipated EPS of $2.97, marking a positive surprise for investors and analysts alike. This EPS beat highlights Lowe’s operational efficiency, even as it navigated through the complexities of recent acquisitions and market fluctuations.

However, the company’s revenue for the quarter stood at $20.81 billion, which slightly missed the expected $20.85 billion. This shortfall in revenue, despite being marginal, indicates challenges in achieving the anticipated sales growth. The increase in comparable sales by 0.4%, driven by a remarkable 11.4% growth in online sales and robust performance in home services and Pro sales, was not enough to meet the revenue target.

Comparing the current quarter’s performance to the previous year, Lowe’s reported total sales of $20.8 billion, up from $20.2 billion in the same quarter of 2024. The adjusted EPS of $3.06 also marked a 5.9% increase from the prior year’s adjusted EPS, demonstrating the company’s ability to enhance profitability despite facing headwinds such as hurricane activity and acquisition-related expenses.

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Lowe’s Raises 2025 Sales Outlook and Updates Full-Year EPS Guidance

Looking ahead, Lowe’s has updated its guidance for the full year 2025, reflecting the ongoing uncertainties in the broader economic environment. The company now expects total sales to reach $86.0 billion, an upward revision from the previous range of $84.5 to $85.5 billion. This adjustment takes into account the integration of Foundation Building Materials (FBM) and Artisan Design Group (ADG), which are expected to contribute positively to the company’s sales and profit expansion.

The company maintains its outlook for flat comparable sales compared to the prior year, a reflection of cautious optimism amid economic challenges. Adjusted operating income as a percentage of sales is projected at 12.1%, slightly lower than the previous estimate of 12.2% to 12.3%. The revised guidance also includes a net interest expense forecast of approximately $1.4 billion and an effective income tax rate of around 24.0%.

Furthermore, Lowe’s anticipates adjusted diluted EPS for the full year to be approximately $12.25, a slight revision from the earlier range of $12.20 to $12.45. The company plans capital expenditures of up to $2.5 billion, emphasizing its commitment to strategic investments that enhance shareholder value and support long-term growth. As Lowe’s navigates the complexities of the current economic landscape, its updated guidance underscores a balanced approach to growth and profitability.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.