Lowe’s Companies, Inc. on Wednesday, February 25, 2026, reported a net earnings of $999 million for the fourth quarter ended on January 30, 2026, but failed to uplift investor sentiments due to weaker guidance and broader challenges in the industry.
After the earnings release, Lowe’s (NYSE: LOW) shares fell nearly 6% as investors stayed cautious, with CEO Marvin R. Ellison citing macroeconomic headwinds in the home improvement sector.
Lowe’s Q4 Performance Snapshot
Lowe’s reported adjusted diluted earnings per share (EPS) of $1.98, which is a little higher to analysts’ expectations of EPS of $1.94 based on a FactSet poll. The net earnings were, however, lower as compared to net earnings of $1.125 billion in the same quarter of the previous year even though the net sales grew by 11% to $20.6 billion. Lowe’s net sales for Q4 2024 stood at $18.6 billion.
The sales performance has apparently beaten expectations in the challenging environment, but earnings stood short from the previous year’s mark as cost of sales jumped almost 12% to $13.9 billion from last quarter’s $12.5 billion.
The Mooresville-headquartered home improvement major also recognized pre-tax expenses of $149 million in the Q4 2025. This comprises the acquisition-related expenses of Artisan Design Group and Foundation Building Materials. The adjusted EPS for Q4 2025, increasing 2.6% to $1.98 year-on-year, is calculated after excluding these expenses.
Lowe’s Results: Numbers That Matter
Key figures from Lowe’s quarterly results as net earnings approach a billion-dollar mark:
- Lowe’s operated 1,759 stores with the combined retailing space totaling to about 196 million square feet.
- Last year, Lowe’s opened 8 stores, employing hundreds of people in its expansion round across North Fort Worth, Magnolia, Midlothian, Royse City, and Georgetown, Texas.
- For Q4 2025, the comparable sales increased 1.3%, largely led by continued uptick in Pro, online and home services sales with a boost coming from resilient holiday performance.
- The world’s second-largest home improvement corporation returned $673 million in dividends in the fourth quarter, taking the full-year dividend distribution to $2.6 billion.
- A cash dividend of $1.20 was announced for the latest quarter.
- Lowe’s long-term debt rose to $37.5 billion as of January 30, 2026, nearly 14% higher from $32.9 billion as at the end of January 31, 2025.
- On the other hand, Lowe’s cash and cash equivalents declined 44% during the year to $982 million as of January 30, 2026, from $1.8 billion, a year ago.
A Look at Annual Performance
Lowe’s saw a marginal growth in total sales to $86.3 billion for the fiscal year ended January 30, 2026, as against the previous year’s sales of $83.7 billion. Notably, the net earnings for the reporting year came in at $6.7 billion, 4% lower as compared to last year’s earnings of nearly $7 billion.
Wall Street Reacts
An outward investor reaction was witnessed with the stock of Lowe’s Companies. On Wednesday, the stock touched an intraday low of $262.56, down 5.75% from the previous closing price of $278.59.
- For the present calendar year, the stock was up 13%, until earnings release which hammered the year-to-date gains to mid-single digits.
- In the last 12-month period, the stock has mostly remained rangebound with annual returns nearing 7%.
- In the same period, the prestigious Dow Jones Industrial Average (DJIA) has grown 14%, while the broader benchmark S&P 500 has jumped approximately 17%.
The lacklustre stock of Lowe’s is trying to find a purposeful breakthrough in the company’s financial performance. Given the challenging operational environment, coupled with flat guidance, the investor class is likely to remain careful, while eyeing the next set of cues that can dictate a clearer path.
Softer guidance for the upcoming fiscal year and cautious tone can never bring buoyancy to a stock price.
Lowe’s stock enjoyed an accelerated run after touching a multi-year bottom during Covid-induced stock market crash. The stock more than tripled investors’ wealth in 18 months from April 2020 to December of 2021. Since then, the stock has remained dull, after surpassing $260-levels for the first time in December 2021 itself.
CEO’s Comments
“We delivered strong results this quarter, as our Total Home strategy is resonating with both our Pro and DIY customers, which was evident during a great holiday season. Given our outperformance this quarter, we awarded $125 million in discretionary bonuses to our frontline associates in recognition of their hard work and outstanding customer service,” said Marvin R. Ellison, Lowe’s chairman, president and CEO.
“While the housing macro remains pressured, we are focused on directing what is within our control, which includes our ongoing productivity initiatives. We remain confident that we are well-positioned to take share regardless of the macro environment,” he added.
Rivalry Check: Lowe’s vs Home Depot
Earlier this week, Home Depot reported net earnings of $2.6 billion, on total sales of $38.2 billion for the Q4 2025. The comparable sales were largely flat with a rise of 0.4%. The industry-wide headwinds are quite visible as the world’s largest home improvement corporation is also reeling under a similar pressure.
In contrast, the stock of Home Depot (NYSE: HD) closed 2% higher after the earnings release, while it pared all the gains on the following day.
Lowe’s Outlook for 2026
The ever-growing pressure on home improvement companies is likely to take a toll on Lowe’s as U.S. consumers continue to remain cautious while spending amid high mortgage rates. The management has projected moderate growth for 2026, while addressing the “ongoing uncertainty” in the home improvement market.
According to Lowe’s’ estimates, the total sales for the year are projected to stay in the range of $92 to $94 billion, which is 7% to 9% higher as compared to 2025’s sales of $86.3 billion. The diluted EPS for the year will remain between $11.75 and $12.25. For the year ended January 30, 2026, the diluted EPS was $11.85, while it was $12.23 for the previous year.
The company is planning a capital expenditure to the tune of approximately $2.5 billion over the 12-month period ending on January 29, 2026.
The comparable sales are expected to remain flat during 2026, while it may see a moderate growth of up to 2% as compared to last year, Lowe’s said.
Lowe’s will register a net interest expense of approximately $1.6 billion in 2026. It recorded a net interest expense of $1.4 billion in 2025 and $1.3 billion in 2024.
With many homeowners deferring the plans of big-ticket renovation and remodeling projects, the home improvement industry is likely to see tepid demand. In the case of Lowe’s, the upbeat revenue from the Pro segment is partly counterbalanced by sluggish growth in the DIY segment.
