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Lowe's Companies (LOW) FY2025 results: revenue $86.3 billion, up 3.1% on the year

Lowe's Companies Inc. (LOW) reported revenue of $86.3 billion for fiscal 2025, the year ended 30 January 2026, up 3.1% on the year before. Net income was $6.7 billion, down 4.4%, and diluted earnings per share $11.85. The figures are the company's own, from the 10-K it filed with the SEC on 23 March 2026.

Revenue
$86.3 billion
+3.1% on the year
FY2018FY2025
Operating margin
11.8%
12.5% a year earlier
FY2018FY2025
Net income
$6.7 billion
-4.4% on the year
FY2018FY2025
Diluted EPS
$11.85
-3.1% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 10 new.

  • Comparable sales rose 1.3%: Total sales reached $20.6 billion, compared with $18.6 billion a year earlier.
  • Adjusted EPS rose 2.6%: Net earnings were $1.0 billion and diluted EPS $1.78, against $1.99. Excluding acquisition-related expenses, adjusted diluted EPS was $1.98.
  • Acquisition expenses in the quarter: Pre-tax expenses of $149 million covered transaction costs and intangible asset amortization for the FBM and ADG acquisitions.
  • SG&A rose faster than sales: SG&A rose to 21.42% of sales from 20.59%. Operating income was $1.7 billion, or 8.30% of sales, against 9.87%.
  • Housing uncertainty built into guidance: Management said fiscal 2026 guidance reflects ongoing uncertainty in the home improvement market.
Read the Q4 FY2025 earnings call summary

From this 10-K

Lowe's is the world's second largest home improvement retailer. At 30 January 2026 it operated 1,759 home improvement stores and outlets in the United States, representing approximately 196 million square feet of retail selling space, plus over 540 branch locations in the United States and Canada. It was founded in 1921 with a hardware store in North Wilkesboro, North Carolina, incorporated in North Carolina in 1952 and has been publicly held since 1961.

Lowe's Companies Inc., the 10-K for 2026

Lowe's is the world's second largest home improvement retailer. At 30 January 2026 it operated 1,759 home improvement stores and outlets in the United States, representing approximately 196 million square feet of retail selling space, plus over 540 branch locations in the United States and Canada. It was founded in 1921 with a hardware store in North Wilkesboro, North Carolina, incorporated in North Carolina in 1952 and has been publicly held since 1961.

Who it sells to

The home improvement market it describes is highly fragmented. The stores and website serve individual homeowners and renters across the range from do-it-yourself to do-it-for-me, and the company also targets professional customers, primarily small to medium-sized ones in three groups: tradespeople, repair and remodellers, and property managers. The 2025 acquisitions of Foundation Building Materials and Artisan Design Group extend that toward larger professional customers in residential and commercial markets. The indicators it watches for demand are home price appreciation, the age of the housing stock, real disposable personal income, housing turnover and residential and commercial construction.

The strategy

The Total Home strategy, introduced in fiscal 2020 and updated in December 2024, runs on five pillars: driving professional customer penetration, accelerating online sales, expanding home services, creating a loyalty ecosystem, and increasing space productivity. Installation is provided through a network of independent installers or outsourced to a third-party model covering both small refresh jobs and complex projects. The loyalty work centres on building out MyLowe's Rewards for both professional and do-it-yourself customers. Space productivity means tailoring assortments to local markets and balancing value-oriented private brands against national brands.

The channels

In store, the 1,759 outlets are generally open seven days a week and average approximately 112,000 square feet of retail selling space plus approximately 32,000 square feet of outdoor garden centre; 16 of them are Lowe's Outlet stores, a smaller format selling discontinued, overstocked and scratch-and-dent items. Online, the websites and apps carry an expanded assortment with ratings and reviews, buying guides and how-to videos, and offer buy online and pick up in store, curbside pickup, same-day delivery through a gig network and shipment to a home or business. On site, specialists help customers choose products, professional sales managers meet customers at their place of business or on a job, and an In-Home Sales programme covers exterior projects such as windows, doors and fencing. The over 540 branches serve larger professional customers, specialising in delivery and installation of building materials for residential and commercial projects and providing design, distribution and installation to home builders and property managers.

Products and supply

The range mixes national brand merchandise with private brands, with localisation and an expanded rural assortment. Installation services run through independent contractors, with kitchens and bath, flooring, appliances, millwork and rough plumbing accounting for most installed sales, and the model separates selling from project administration so sales associates can focus on the sale while project managers handle execution. The company owns and operates more than 120 supply chain facilities, including regional, flatbed, import and bulk distribution centres, cross-dock terminals and fulfilment centres.

Competition

Competitors include national and regional home improvement warehouse chains and lumber yards, traditional hardware, plumbing, electrical, drywall and home supply retailers and distributors, paint stores, garden centres, maintenance and repair organisations, general merchandise retailers, home goods specialty stores, warehouse clubs, online retailers, equipment and tool rental providers, installers and wholesalers. The filing names location of stores and branches, product assortment, pricing, fulfilment capabilities and customer service as the key competitive factors, with technology including artificial intelligence and changing customer expectations making omnichannel capability another.

From Lowe's annual report on Form 10-K for the year ended 30 January 2026. The filing

Written from the 10-K filed 23 March 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue86,28683,67486,377+3.1%
Cost of revenue57,40155,79757,533+2.9%
Gross profit28,88527,87728,844+3.6%
Gross margin33.5%33.3%33.4%
Selling, general and administrative16,79115,68215,570+7.1%
Operating income10,15310,46611,557-3.0%
Operating margin11.8%12.5%13.4%
Interest expense1,4061,3131,382+7.1%
Pre-tax income8,7479,15310,175-4.4%
Income tax2,0932,1962,449-4.7%
Effective tax rate23.9%24.0%24.1%
Net income6,6546,9577,726-4.4%
Net margin7.7%8.3%8.9%
Diluted EPS$11.85$12.23$13.20-3.1%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow9,8649,6258,140+2.5%
Capital expenditure2,2131,9271,964+14.8%
Free cash flow7,6517,6986,176-0.6%
Free cash flow margin8.9%9.2%7.2%
Cash from investing-12,264-1,738-1,901
Cash from financing1,621-7,047-6,666
Depreciation and amortisation2,1941,9721,923+11.3%
Share-based compensation247221210+11.8%
Buybacks2114,0536,138-94.8%
Dividends paid2,6362,5662,531+2.7%
Dividend per share$4.75$4.55$4.35+4.4%
Diluted shares, weighted560m568m584m-1.4%
Shares outstanding at period end561m560m574m+0.2%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity-9,917-14,231-15,050
Short-term borrowings0.0n/a0.0
Debt39,81935,31935,770+12.7%
Operating lease liabilities4,0433,6283,737+11.4%
Finance lease liabilities310388422-20.1%
Other liabilities19,88917,99816,916+10.5%
Total liabilities and equity54,14443,10241,795+25.6%
Fixed assetsn/an/a17,653
Goodwill3,945311311+1,168.5%
Intangible assets5,908277n/a+2,032.9%
Investments689649559+6.2%
Cash and equivalents9821,761921-44.2%
Receivables1,09094.0n/a+1,059.6%
Inventory17,30017,40916,894-0.6%
Other assets24,23022,6015,457+7.2%
Total assets54,14443,10241,795+25.6%

10-K for the year ended 30 January 2026, filed 23 March 2026: the filing.