01—Abstract
Summary
Summary of the 10-K filed March 23, 2026. Cited figures are marked; the original filing is the authoritative source.
Lowe's Companies, Inc. reported net sales of $86.3 billiona for fiscal year 2025, an increase of 3.1% over fiscal year 2024, driven by acquisitions and a slight increase in comparable average ticket, partially offset by a decrease in customer transactions.
Net earnings for fiscal year 2025 were $6.7 billionb, a decrease of 4.4% compared to the prior year, resulting in diluted earnings per share of $11.85. The company experienced increased selling, general, and administrative expenses as a percentage of sales, partly due to transaction costs and amortization related to the acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG). Despite these impacts, Lowe's continued to focus on its "Total Home" strategy, emphasizing Pro customer penetration, e-commerce acceleration, and home services expansion, positioning for long-term value creation.
02—Key points
Key Highlights
- Net sales grew 3.1% to $86.3 billion in fiscal 2025, supported by acquisitions and a 3.0% increase in comparable average ticket.
- Net earnings decreased by 4.4% to $6.7 billion, with diluted EPS at $11.85.
- Acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG) were completed in fiscal 2025, bolstering the Pro customer offering.
- Selling, General, and Administrative (SG&A) expenses deleveraged 72 basis points as a percentage of sales, largely due to employee compensation and integration costs from acquisitions.
- The company generated $9.9 billion in cash flow from operating activities, with $2.2 billion invested in capital expenditures.
- Lowe's paid $2.6 billion in dividends during fiscal year 2025, demonstrating a commitment to returning cash to shareholders.
- The company maintained effective internal controls over financial reporting, with an unqualified opinion from its independent auditor.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2026, Lowes Companies Inc kept $0.08.
- Revenue$86.29B100.0%
- Cost of revenue−$57.40B66.5%
- Gross profit$28.89B33.5%
- Operating costs−$18.73B21.7%
- Operating income$10.15B11.8%
- Interest, other & tax−$3.50B4.1%
- Net income$6.65B7.7%
Where FY2026 revenue went
$86.29B- Cost of revenue: $57.40B, 67% of revenue
- SG&A: $16.79B, 19% of revenue
- Net income: $6.65B, 7.7% of revenue
- Other operating costs: $1.94B, 2.2% of revenue
- Interest, other & tax: $3.50B, 4.1% of revenue
Kept 7.7% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2026filed March 23, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $86.29B$83.67B | +3.1% |
| Cost of Revenue | $57.40B$55.80B | +2.9% |
| Gross Profit | $28.89B$27.88B | +3.6% |
| SG&A Expenses | $16.79B$15.68B | +7.1% |
| Operating Income | $10.15B$10.47B | −3.0% |
| Net Income | $6.65B$6.96B | −4.4% |
| EPS (Basic) | $11.87$12.25 | −3.1% |
| EPS (Diluted) | $11.85$12.23 | −3.1% |
| Shares Outstanding (Basic) | 559.00M567.00M | −1.4% |
| Shares Outstanding (Diluted) | 560.00M568.00M | −1.4% |
05—Questions
Frequently Asked Questions
What were the key financial results for Lowe's in fiscal year 2025?
In fiscal year 2025, Lowe's reported net sales of $86.3 billion, a 3.1% increase over fiscal year 2024. Net earnings were $6.7 billion, a 4.4% decrease year-over-year, resulting in diluted earnings per share of $11.85. Operating income was $10.2 billion, a decrease from the prior year.
How did the acquisitions of FBM and ADG impact the company's financial performance?
The acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG) in fiscal year 2025 significantly contributed to the increase in net sales and expanded the company's Pro customer base. However, these acquisitions also led to an increase in SG&A expenses due to transaction costs and intangible asset amortization, which impacted net earnings and diluted earnings per share.
What is Lowe's strategy for future growth?
Lowe's continues to execute its "Total Home" strategy, focusing on five key pillars: driving Pro customer penetration through enhanced offerings and acquisitions, accelerating online sales, expanding home services, creating a loyalty ecosystem, and increasing space productivity. The company is investing in omnichannel capabilities, supply chain modernization, and technology to support these initiatives.
What is Lowe's approach to returning capital to shareholders?
Lowe's demonstrates its commitment to returning capital to shareholders through a consistent dividend payment program and share repurchases. In fiscal year 2025, the company paid $2.6 billion in dividends. While share repurchases were paused during fiscal year 2025, the company had approximately $10.8 billion remaining under its share repurchase authorization.
06—Continue