01—Abstract
Summary
Summary of the 10-Q filed August 28, 2025. Cited figures are marked; the original filing is the authoritative source.
Lowe's Companies, Inc. reported modest revenue growth for the second quarter of fiscal year 2025, with net sales increasing by 1.6% to $24.0 billiona.
This growth was primarily driven by a 1.1% increase in comparable sales, fueled by a 2.9% rise in average ticket, though partially offset by a 1.8% decrease in customer transactions. Net earnings remained stable at $2.4 billionb, resulting in diluted earnings per share (EPS) of $4.27, a slight increase from $4.17 in the prior year period. The company successfully navigated market uncertainties by leveraging productivity initiatives and its 'Total Home' strategy, which continues to support Pro customer growth and online sales.
For the first six months of the fiscal year, net sales saw a slight decrease of 0.1% to $44.9 billionc, with comparable sales down 0.3%. Net earnings for the six-month period were $4.0 billion, compared to $4.1 billion in the prior year, leading to diluted EPS of $7.19 versus $7.23.
The company completed the acquisition of Artisan Design Group (ADG) for $1.3 billiond, which is expected to expand its Pro customer offerings. Lowe's maintained a strong liquidity position with $4.9 billion in cash and cash equivalents and $4.0 billion in undrawn credit facilities, while continuing to return capital to shareholders through dividends and share repurchases, albeit at a reduced pace for repurchases in the current period.
02—Key points
Key Highlights
- Net sales for the second quarter increased 1.6% to $24.0 billion, driven by a 1.1% increase in comparable sales.
- Diluted Earnings Per Share (EPS) for the second quarter was $4.27, up from $4.17 in the prior year, despite a slight decrease in customer transactions.
- Completed the acquisition of Artisan Design Group (ADG) for $1.3 billion to enhance Pro customer offerings.
- Cash flow from operations remained strong, providing $7.6 billion for the first six months of the fiscal year.
- The company reported $4.9 billion in cash and cash equivalents and $4.0 billion in undrawn revolving credit facilities as of August 1, 2025, indicating robust liquidity.
- Significant share repurchases occurred in the prior year, while the current six-month period saw $113 million in repurchases, indicating a shift in capital allocation strategy.
- Subsequent to the quarter, Lowe's announced a definitive agreement to acquire Foundation Building Materials (FBM) for approximately $8.8 billion, signaling a major strategic expansion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Lowes Companies Inc kept $0.08.
- Revenue$20.81B100.0%
- Cost of revenue−$13.70B65.8%
- Gross profit$7.12B34.2%
- Operating costs−$4.63B22.3%
- Operating income$2.48B11.9%
- Interest, other & tax−$865.0M4.2%
- Net income$1.62B7.8%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed August 28, 2025Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $20.81B$23.59B | −11.8% |
| Cost of Revenue | $13.70B$15.69B | −12.7% |
| Gross Profit | $7.12B$7.89B | −9.9% |
| SG&A Expenses | $4.16B$4.03B | +3.4% |
| Operating Income | $2.48B$3.45B | −28.0% |
| Net Income | $1.62B$2.38B | −32.2% |
| EPS (Basic) | $2.88$4.18 | −31.1% |
| EPS (Diluted) | $2.88$4.17 | −30.9% |
| Shares Outstanding (Basic) | 559.00M568.00M | −1.6% |
| Shares Outstanding (Diluted) | 560.00M570.00M | −1.8% |
05—Questions
Frequently Asked Questions
What was Lowe's performance in terms of sales and profitability for the second quarter of fiscal year 2025?
For the second quarter of fiscal year 2025, Lowe's reported a 1.6% increase in net sales to $24.0 billion, driven by a 1.1% rise in comparable sales. Net earnings remained stable at $2.4 billion, resulting in diluted earnings per share (EPS) of $4.27, an increase from $4.17 in the prior year's second quarter.
How did the acquisition of Artisan Design Group (ADG) impact the financial results?
The acquisition of ADG was completed on June 2, 2025, for $1.3 billion. While the acquisition is expected to expand Lowe's Pro customer offerings, the financial statements note that the acquisition's impact was not material to the consolidated financial statements in terms of pro forma revenue and earnings. However, the quarter's results included $43 million in pre-tax expenses related to transaction costs and purchase accounting adjustments for ADG, which decreased diluted EPS by $0.06.
What is Lowe's liquidity position, and how is it managing its capital?
Lowe's maintains a strong liquidity position with $4.9 billion in cash and cash equivalents and $4.0 billion in undrawn capacity on its revolving credit facilities as of August 1, 2025. For the first six months of the fiscal year, the company generated $7.6 billion in cash flow from operations. Capital expenditures for the six-month period were $1.0 billion. While dividend payments continued, share repurchases were significantly lower in the first six months of fiscal 2025 ($113 million) compared to the prior year ($1.9 billion), with $10.8 billion remaining available under the share repurchase program.
What significant future strategic move was announced?
Subsequent to the end of the second quarter, on August 20, 2025, Lowe's announced a definitive agreement to acquire Foundation Building Materials (FBM) for approximately $8.8 billion. This acquisition is intended to accelerate Lowe's 'Total Home' strategy by enhancing its offerings to Pro customers through expanded capabilities, fulfillment, digital tools, and trade credit platforms.
06—Continue