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

Lowe’s Companies (NYSE:LOW) posted its earnings results on Wednesday. The home improvement retailer reported $1.98 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.94 by $0.04, FiscalAI reports. The company had revenue of $20.58 billion for the quarter, compared to analysts’ expectations of $20.34 billion. Lowe’s Companies had a negative return on equity of 55.86% and a net margin of 8.05%.Lowe’s Companies’s quarterly revenue was up 10.9% on a year-over-year basis. During the same period last year, the firm earned $1.93 earnings per share. 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 5.1%

NYSE:LOW traded down $14.34 during mid-day trading on Wednesday, reaching $264.26. The company’s stock had a trading volume of 2,226,687 shares, compared to its average volume of 2,841,199. The stock has a market cap of $148.23 billion, a P/E ratio of 22.00, a PEG ratio of 4.28 and a beta of 0.97. The firm’s fifty day moving average price is $265.77 and its two-hundred day moving average price is $254.17. Lowe’s Companies has a 12-month low of $206.38 and a 12-month high of $293.06.

Insider Buying and Selling at Lowe’s Companies

In related news, CEO Marvin R. Ellison sold 18,000 shares of the stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $261.17, for a total transaction of $4,701,060.00. Following the transaction, the chief executive officer owned 231,043 shares in the company, valued at $60,341,500.31. This represents a 7.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.27% of the stock is owned by insiders.

Institutional Investors Weigh In On Lowe’s Companies

Hedge funds have recently added to or reduced their stakes in the stock. Mcguire Capital Advisors Inc. purchased a new position in shares of Lowe’s Companies in the 4th quarter worth $62,000. Compound Planning Inc. grew its stake in shares of Lowe’s Companies by 20.2% during the 4th quarter. Compound Planning Inc. now owns 10,911 shares of the home improvement retailer’s stock valued at $2,631,000 after purchasing an additional 1,836 shares during the period. Axxcess Wealth Management LLC increased its position in shares of Lowe’s Companies by 16.1% during the 4th quarter. Axxcess Wealth Management LLC now owns 20,760 shares of the home improvement retailer’s stock valued at $5,007,000 after purchasing an additional 2,876 shares during the last quarter. Corient Private Wealth LLC boosted its holdings in shares of Lowe’s Companies by 56.1% in the fourth quarter. Corient Private Wealth LLC now owns 421,376 shares of the home improvement retailer’s stock worth $101,619,000 after buying an additional 151,396 shares during the last quarter. Finally, Blue Sparrow LLC DE bought a new stake in Lowe’s Companies during the fourth quarter valued at approximately $15,350,000. 74.06% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms have recently commented on LOW. Stifel Nicolaus raised their target price on Lowe’s Companies from $230.00 to $250.00 and gave the company a “hold” rating in a research note on Monday, December 1st. Barclays upgraded Lowe’s Companies from an “equal weight” rating to an “overweight” rating and set a $285.00 price objective for the company in a report on Wednesday, January 7th. Jefferies Financial Group boosted their target price on shares of Lowe’s Companies from $280.00 to $285.00 and gave the company a “buy” rating in a report on Friday, December 19th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Lowe’s Companies in a research note on Monday, December 29th. Finally, Citigroup boosted their price objective on shares of Lowe’s Companies from $250.00 to $285.00 and gave the stock a “neutral” rating in a research note on Thursday, February 12th. Twenty equities 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 company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $289.59.

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

About Lowe’s Companies

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.