Lowe's Third Quarter 2025 Earnings Surpass Expectations

2025-11-20 companies

Mooresville, Wednesday, 19 November 2025.
Lowe’s reported Q3 2025 net earnings of $1.6 billion, with adjusted EPS rising 5.9% to $3.06. Sales reached $20.8 billion, aided by strong online and Pro segment growth.

Strong Financial Performance Despite Market Challenges

Lowe’s Companies, Inc. (NYSE: LOW) reported robust financial results for the third quarter of 2025, ending October 31. The company achieved net earnings of $1.6 billion, despite a slight decrease from $1.69 billion in the same quarter the previous year. The diluted earnings per share (EPS) stood at $2.88, marking a decrease from $2.99 in Q3 2024. However, when adjusted for acquisition-related expenses, the EPS increased by 5.9% to $3.06, reflecting the company’s operational efficiency and strategic growth initiatives [1][2][3].

Impressive Sales Growth Driven by Online and Pro Segments

Total sales for the quarter reached $20.8 billion, up from $20.2 billion in the prior-year period. This growth was significantly bolstered by an 11.4% increase in online sales and strong demand from professional customers, often referred to as the Pro segment. The Pro segment’s expansion was further supported by the acquisition of Foundation Building Materials (FBM), enhancing Lowe’s offerings and market reach among professional contractors [1][3][5].

Outlook and Strategic Initiatives

Looking ahead, Lowe’s has updated its full-year 2025 outlook, projecting total sales of $86.0 billion, with expectations for comparable sales to remain flat. The adjusted operating margin is anticipated at 12.1%, slightly revised from previous estimates of 12.2% to 12.3%. These projections reflect Lowe’s cautious optimism amid ongoing macroeconomic uncertainties. The company continues to invest in its Pro segment and online business as strategic drivers for incremental revenue growth [1][2][4].

Market Reaction and Future Prospects

The earnings announcement positively impacted Lowe’s stock, which saw a 4% increase in premarket trading on November 19, 2025. Analysts remain optimistic about Lowe’s ability to sustain growth, citing the company’s strategic acquisitions and emphasis on online and professional services as key factors. As Lowe’s navigates the evolving economic landscape, its focus on enhancing the Pro segment and digital transformation will likely continue to drive financial performance [1][5][6].

Sources

quarterly results Lowe's earnings